Looking for a detailed list of income tax rates by state? It can get a bit complicated if you try to break it all down by all types of taxes, especially since the 50 states follow different tax rates than the federal income tax brackets. But here, we’ll give you a more detailed view of the Tax Foundation’s data on income taxes by each state so you will be prepared for the net tax season.
Income Tax Rates by State: The Definitive List | Types of Taxes
1. Alabama
Alabama follows only three brackets in terms of personal income tax. The highest bracket which is 5% applies to earnings above $3,000. Overall, Alabama is also a tax-friendly state placing only on the 43rd spot on the overall tax burden ranking.
2. Alaska
Last in the list is Alaska, which not only imposes a no income tax rule but also has the lowest gas tax in the whole of U.S. Alaskans also don’t pay state sales taxes. Their municipalities, however, impose local sales taxes.
3. Arizona
Arizona 1% ballot initiative ups state income tax rate from 4.5 to 9% on income over $1 million. That would help raise $690 million annually for teacher salaries & supplies, as well as restore full-day kindergarten & reduce class sizes @ArizonaEA https://t.co/r7mCnh6n03
— Too Much (@Too_Much_Online) July 7, 2018
Arizona’s income tax is quite low, ranging only from 2.59% to 4.54%. Even better, only residents who earn above $152,688 will be deducted with the highest bracket. Just like Mississipi, residents of Arizona also enjoy low gas consumption tax at just 19 cents per gallon.
4. Arkansas
Arkansas’ income tax rate can go as low as 0.9% and as high as 6.9%. They have nine brackets for income taxes and the highest bracket applies to income above $35,100. This goes for both single and married tax return filers.
5. California
Along with having the highest long-term capital gains tax at 33%, California also has the biggest income tax percentage with a whopping 13.3%. The good news is it only applies to those earning over a million dollars. With tax percentages ranging from 1% to 13.3% with 10 brackets, California still has a friendlier income tax rate than New York.
6. Colorado
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Another state following a flat rate income tax is Colorado. At a 4.63% rate, an earning of $1,000 will have a $23.08 tax. Colorado is generally a tax-friendly state with reasonable rates for both direct and indirect taxes and only places 35th in the overall tax burden ranking.
7. Connecticut
Connecticut’s income tax range is from 3% to 6.99% with the highest bracket applying to earnings above $500,000. While they may rank around the middle in terms of income tax, the state ranks 6th when it comes to overall tax burden. It has some of the highest property taxes and is the only state that imposes a gift tax.
8. Delaware
The state of Delaware imposes 2.2% payroll taxes on earnings between $2,001 to $5,000 and 6.6% on income over $60,000. While its income tax may be heavy on the payslip, it’s important to note that Delaware makes up for it with a significantly lower tax rate on goods and services such as gas and property. In fact, Delaware is among, if not the most, friendly state in terms of taxes.
9. Florida
While the combined sales and state tax may be a bit higher in Florida, it’s still a sunny day for the residents of the Sunshine State as they enjoy no income tax. The property tax is also below the midpoint average in the U.S. In the overall burden tax ranking, Florida is number 45 on the list.
10. Georgia
With an income tax of 1% to 6%, Georgia is 16th in the highest income taxes in the U.S. An income of $7,000 is already taxable by 6%. Nonetheless, the state of Georgia ranks only 32nd in the overall tax burden compared with other states.
11. Hawaii
Hawaii ranks second in the overall tax burden per state, falling just a bit behind New York. The state income tax ranges from 1.4% to 8.25%, with the highest bracket applicable to earnings over $48,000. Its highest bracket of 8.25% is one of the highest percentages of income tax in the U.S.
12. Idaho
If you earn over $10,905, your income tax in Idaho will be 7.40% of your earnings. The lowest percentage in their bracket is 1.60%. Even if their personal income tax is a bit heavy, Idaho’s taxes aren’t a big burden overall, and they only rank 39 in the overall tax burden in all the states.
13. Illinois
Happy (unhappy?) #TaxDay. Here's the Backstory on the Illinois individual income tax, the state's largest revenue source. Just in case you filed yours early and still want more: https://t.co/HGns5FXd0n pic.twitter.com/KJxQ1LQvs7
— Better Government Association (@BetterGov) April 17, 2018
The last of the eight states that follows a flat tax rate on income tax is Illinois. The state only takes 3.75% no matter how much the resident earns. A $1,000 earner will be levied $18.21.
14. Indiana
Indiana is among the eight states that follow a flat taxation rate for personal income. The state takes 3.3% of federal AGI with modifications. For an income of $1,000, the income tax will be $24.36.
15. Iowa
Iowa’s personal income tax can go as low as 0.36% to as high as 8.98%. It follows nine tax brackets and only charges 0.36% for earnings below $1,573. The highest bracket applies to those who earn more than $70,785.
16. Kansas
With an income tax bracket ranging from 2.7% to 4.6%, the state of Kansas falls in the lower half of the list. The highest bracket applies with an income above $15,000. In terms of the overall tax burden, Kansas is on the 20th spot.
17. Kentucky
Kentucky’s income tax range of 2%-6% only has six income brackets, with the highest bracket applicable to earnings above $75,000. An income of $1,000 will get you a $34.45 deduction, which is why it still ranks fifth in highest income taxes collected per state. The good news, though, is property and total sales and excise tax in the state are relatively low at 1.99% and 3.67%, respectively.
18. Louisiana
Louisiana is a tax-friendly state, not only for its low-income taxes ranging only from 2% to 6% but also for its relatively low rates on gas and property taxes. The Pelican State imposes the third lowest rates on property taxes among all of the U.S. Its 20 cents per gallon gas tax is also significantly lower than in most states.
19. Maine
The state of Maine has a whopping income tax ranging from 5.8% to 9.95%. It has four income tax brackets with the highest applying to those earning over $250,000. Maine ranks fourth in the overall tax burden per state in the US.
20. Maryland
Maryland’s income tax bracket is from 2% to 5.75%, with the highest rate applying to those who earn more than $250,000. Now, at first look, Maryland’s income tax rates don’t seem so bad. The thing though is the state’s counties can impose additional income taxes on top of the state bracket.
21. Massachusetts
Massachusetts, like North Carolina, follows a flat rate income tax. All earning residents get 5.1% deductions from their paychecks for income tax. For every $1,000 earned, $31.75 goes to the state.
22. Michigan
HB5932 [NEW] Individual income tax; collections; earmark to the Michigan transportation fund; accelerate. Amends sec. 51d of 1967 PA 281 (MC https://t.co/pBnec2IAQq
— LegiScan MI (@LegiScanMI) July 15, 2018
Michigan is another state that follows the flat tax rate on income taxes. The state only takes 4.25% of federal AGI with modifications. Someone who earns $1,000 in Michigan will be taxed $22.35.
23. Minnesota
Minnesota’s 5.35% to 9.85% income tax range is among the highest ranges of income tax there are among the states. Minnesota ranks fifth in the overall tax burden by state according to Wallethub. The highest bracket of 9.85% applies to earnings beyond $156,900.
24. Mississipi
Mississippi follows only three income tax brackets ranging from 3% to 5%. The highest bracket is applicable to residents who earn more than $10,000. The residents of the state also enjoy a lower gas tax of just 19 cents per gallon, which is the second-lowest rate in all of the U.S.
25. Missouri
The state of Missouri follows 10 income brackets with percentages ranging from 1% to 6%. The highest bracket is applicable to earnings beyond $9,072. While Missouri’s income tax ranking falls in the upper half of the list, their overall tax burden falls only on the 38th spot on Wallethub’s list.
26. Montana
The income tax income in Montana can go as low as 1% to 6.9%. The 6.9% bracket applies to earnings above $17,600 for both single and married filers. For those earning under $2,900, only 1% is taken for income tax.
27. Nebraska
Nebraska takes an income tax ranging from 2.46% to 6.84%. The highest bracket applies to earnings above $29,830 for single filers. For married joint filers, the highest bracket will apply to incomes above $59,660.
28. Nevada
The Silver State is a good place to be employed in as it imposes a no income tax rule. Nevada’s property tax also falls on the median in comparison to other states. With a modest property tax and no income tax imposed, the state mostly gets its tax revenue from its above-average sales tax.
29. New Hampshire
New Hampshire doesn’t impose an income tax on wages. The state’s total sales and excise tax burden is only at 1.24%. They only rank 46th on the overall tax burden.
30. New Jersey
Individual Income #Tax: State Budget Problems Lead to End of Reciprocity in New Jersey, Pennsylvania https://t.co/WPJqpgzFPs pic.twitter.com/o6MpU7jA8b
— Bloomberg Tax (@tax) September 21, 2016
The state of New Jersey only takes 1.40% of income tax for those who earn under $20,000. For those who earn above $500,000, the income tax is at 8.97%. On the overall tax burden, though, New Jersey places on the top 7.
31. New Mexico
The highest bracket for personal income tax for New Mexico is applicable to those who earn more than $16,000. Even for those earners, income tax is smaller than most states in the federal government system at just 4.90%. Those who earn under $5,500 are only taxed at 1.70%.
32. New York
Is it too late for the Vampire State? @realDonaldTrump #MAGA 🇺🇸 https://t.co/EByqGhaaO3
— Chris L Doster (@chrisldoster) January 17, 2018
New York is the unfriendliest state in the U.S. when it comes to taxes. Its bracket of 4% to 8.82% in income tax rates means a deduction of $44.45 per $1,000 pre-tax dollars. Considering property and excise taxes as well, New York ranks first in the overall taxable income burden given to its residents.
33. North Carolina
Among the eight states following a flat tax rate rule is North Carolina. This means the percentage of deduction for tax remains the same no matter how much a resident earns. In North Carolina, it’s a hefty 5.75%.
34. North Dakota
The North Dakota income tax bracket is already low, ranging only from 1.1% to 2.9%. The highest bracket of 2.9% only applies to those who earn more than $416,700. The Peace Garden State ranks on the 36th of the overall tax burden among all the states.
35. Ohio
At first glance, Ohio’s income tax range of 0.495% to 4,997% doesn’t seem so bad. However, an earning of $1,000 will get you a $36.18 deduction in taxes. Ohio’s withholding tax has nine brackets and the highest bracket applies to personal income above $210,600.
36. Oklahoma
What do Democrats object to most about the tax bill, the bonuses, wage increases, or reductions in utility rates? https://t.co/9Cr89TxnaW
— Rich Lowry (@RichLowry) January 13, 2018
The state of Oklahoma has six income brackets ranging from 0.5% to 5.25%. It doesn’t seem much, but the highest bracket applies already to earnings above $7,200. An income of $1,000 will already equate to $25.91 tax.
37. Oregon
Oregon’s lowest income tax bracket is 5%, which is among the highest in the country. Its highest bracket which is 9.9% is applicable to those who earn over $125,000. Despite the high-income tax rate, the state of Oregon is still among the tax friendlier states in the U.S. because of its low real estate property tax and the zero sales tax.
38. Pennsylvania
Another state offering a flat tax rate is Pennsylvania. No matter how much taxpayers earn, they will be taxed 3.07% of your income. That’s $25.51 for a $1,000 earning.
39. Puerto Rico
DYK: Puerto Ricans don’t pay individual income tax, but do pay US business, payroll, & estate taxes.https://t.co/qqpAeFwGmd #PuertoRico
— 🚶🏻Curtis S. Chin (@CurtisSChin) October 30, 2017
The great thing about Puerto Rico is it levies 0 taxes on individuals earning below $9,000. But if you earn above this amount, the personal income tax reaches 7% of the excess over USD 9,000. Those whose incomes reach $61,500 and above pay $8,430 plus 33% of the excess over $61,500.
40. Rhode Island
Rhode Island’s income tax ranges from 3.75% to 5.99%. An income of $1,000 will be taxed $25.83. Rhode Island’s income tax has 3 brackets and the highest applies to earnings over $139,400.
41. South Carolina
The state of South Carolina doesn’t impose an income tax on those who earn less than $2,930. For earnings higher than $14,650, however, a 7% income tax is followed. South Carolina only places 37th in the overall tax burden among all the local governments.
42. South Dakota
The people from South Dakota not only enjoy not having an income tax, they also enjoy a relatively lower state and sales tax. Even prescription drugs aren’t taxed in the Mt. Rushmore State. On the downside, property tax in the state is higher compared to average property taxes in the U.S.
43. Tennessee
Just like New Hampshire, Tennessee also doesn’t impose an income tax on wages. Its property tax burden is only 2.06%. It ranks in the bottom three in terms of overall tax burden.
44. Texas
Among the nine states that don’t impose personal income tax is Texas. More good news for residents is their property tax burden is only 3.57%. The state placed 34th on the overall tax burden ranking. The Lone Star State also doesn’t levy an estate tax on inheritance.
45. Utah
Utah is also among the eight states offering a flat tax rate on personal income. Its 5% income tax rate is big considering other states offer a lower percentage of tax for lower incomes. However, all in all, Utah only ranks 25th in the overall tax burden compared to other states.
46. Vermont
Did you know? Vermont actually has has three statewide property tax rates: residential, income-sensitized, and non-residential. Each effects individual taxpayers differently. https://t.co/8u7Ufuz0W6 pic.twitter.com/QNaUrhteWo
— CampaignForVermont (@CampaignForVT) January 15, 2018
Vermont follows five income tax brackets ranging from 3.55% to 8.95%. While 8.95% seem hefty, it only applies to those who earn more than $416,700. Vermont may fall on the lower half of the list on the income tax ranking, but it ranks 3rd on the overall tax liability burden.
47. Virginia
It’s easy to think Virginia has a low-income tax with a bracket ranging from 2% to 5.75%. But if you take a closer look, the highest bracket already applies to income just above $17,000. This means an income of $1,000 will have a $24.90 tax, which lands it on the top 30 on the list.
48. Washington
Here is another state with lucky residents. Washington also doesn’t deduct any percentages from its residents’ paycheck. On the list of the overall tax burden per state, Washington only places 33rd.
49. Washington, D.C
Residents living near the Capitol pay from 4% at the lowest bracket to 8.5% for taxable incomes approaching $60,000. Citizens who earn more than this mark pay an 8.95% tax rate. The local government no longer claims inheritance taxes and it levies a sales tax on purchases with 5 different brackets.
50. West Virginia
While West Virginia ranks 24th in terms of income tax, their overall tax burden rate is the 14th highest among all the states in the U.S. Their income tax ranges from 3% to 6.5%. Only those who earn more than $60,000 are taxed at 6.5%.
51. Wisconsin
Wisconsin’s highest income tax rate of 7.65% is the tenth highest in the U.S. The lowest bracket is 4% for those earning below $11,230. An earning of $1,000 equates to a $31.34 deduction for taxes.
52. Wyoming
Another state where you won’t worry much about taxes is Wyoming. Aside from not having an income tax, residents get to enjoy the lowest beer tax in all of the U.S. Its property tax is also the ninth lowest in the country.
For more information on income tax rates by state, check out this video from Retirement Think Tank:
Since the country has 50 states, a citizen can find it difficult to sort the details of income taxes to see which states levy the least amount of tax. While some states may enjoy paying minimal income taxes, they might actually be paying more taxes on other things, such as property or excise tax. If there is one takeaway from this list, it’s that it will help readers see where they can move to work if they want more net income from their gross salaries.
Which state has the most appealing tax system for you? Let us know in the comments!
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Editor’s Note: This article was originally published in February 2018, it has been updated for accuracy and relevancy.