Introduction
State tax rates in the United States can vary significantly from one state to another, creating a diverse landscape of tax burdens for individuals and businesses. Unlike federal taxes, which are uniform across the country, state tax rates are determined by each state’s legislature and can be influenced by various factors such as economic conditions, budgetary requirements, and political priorities. As a result, taxpayers across the nation experience a wide range of tax rates, with some states imposing high tax burdens while others offer more favorable tax environments.
The variation in state tax rates stems primarily from the different approaches states take in generating revenue to fund public services and infrastructure. While some states rely heavily on income taxes, others rely on alternative revenue sources such as sales taxes or property taxes. Additionally, some states do not levy certain types of taxes at all, which can significantly impact the overall tax burden for residents.
States with no income tax, such as Alaska, Florida, Nevada, South Carolina, South Dakota, Tennessee, Texas, and Wyoming, stand out as attractive options for individuals seeking to minimize their tax obligations. These states rely on alternative revenue streams, such as sales taxes or revenue from natural resources, to fund government operations. By eliminating income taxes, these states offer residents the advantage of keeping more of their hard-earned income.
On the other end of the spectrum, states with higher income tax rates can impose a more substantial financial burden. California, for instance, levies a 1% income tax rate, while New York and Michigan have rates of 4% and 4.25%, respectively. However, it’s worth noting that income tax rates are not the sole factor determining overall tax burdens. Other taxes, such as sales tax, property tax, and additional fees, can also contribute significantly to the overall tax burden in a state.
State Income Tax Rates
| # | State | Income Tax Rate | State-Local Tax Burden | Capital Gains Tax Rate | Amount of Individual Income Tax Refunds |
|---|---|---|---|---|---|
| 1 | Washington | 7% | 10.7% | 7% | 22 million |
| 2 | Maine | 5.8% | 12.4% | 7.15% | 4 million |
| 3 | Minnesota | 5.35% | 12.1% | 9.85% | 16 million |
| 4 | Kentucky | 5% | 9.6% | 5% | 14 million |
| 5 | Massachusetts | 5% | 11.5% | 5% | 19 million |
| 6 | New Hampshire | 5% | 9.6% | 0% | 4 million |
| 7 | North Carolina | 4.99% | 9.9% | 4.99% | 30 million |
| 8 | Illinois | 4.95% | 12.9% | 4.95% | 37 million |
| 9 | Utah | 4.95% | 12.1% | 4.95% | 10 million |
| 10 | Oregon | 4.75% | 10.8% | 9.9% | 12 million |
| 11 | Colorado | 4.55% | 9.7% | 4.55% | 16 million |
| 12 | Michigan | 4.25% | 8.6% | 4.25% | 30 million |
| 13 | District of Columbia | 4% | 12% | 5.75% | 2 million |
| 14 | Mississippi | 4% | 9.8% | 5% | 9 million |
| 15 | New York | 4% | 15.9% | 8.82% | 58 million |
| 16 | Rhode Island | 3.75% | 11.4% | 5.99% | 3 million |
| 17 | Wisconsin | 3.54% | 10.9% | 7.65% | 17 million |
| 18 | Vermont | 3.35% | 13.6% | 8.75% | 2 million |
| 19 | Indiana | 3.23% | 9.3% | 3.23% | 21 million |
| 20 | Kansas | 3.1% | 11.2% | 5.7% | 8 million |
| 21 | Pennsylvania | 3.07% | 10.6% | 3.07% | 39 million |
| 22 | Connecticut | 3% | 15.4% | 6.99% | 10 million |
| 23 | West Virginia | 3% | 9.8% | 6.5% | 5 million |
| 24 | Ohio | 2.77% | 10% | 4.8% | 35 million |
| 25 | Arizona | 2.59% | 9.5% | 4.5% | 21 million |
| 26 | Nebraska | 2.46% | 11.5% | 6.84% | 6 million |
| 27 | Delaware | 2.2% | 12.4% | 6.6% | 3 million |
| 28 | Alabama | 2% | 9.8% | 5% | 15 million |
| 29 | Arkansas | 2% | 10.2% | 5.5% | 9 million |
| 30 | Maryland | 2% | 11.3% | 5.75% | 17 million |
| 31 | Virginia | 2% | 12.5% | 5.75% | 24 million |
| 32 | Louisiana | 1.85% | 9.1% | 4.25% | 14 million |
| 33 | New Mexico | 1.7% | 10.2% | 5.9% | 6 million |
| 34 | Missouri | 1.5% | 9.3% | 5.4% | 18 million |
| 35 | Hawaii | 1.4% | 14.1% | 7.25% | 4 million |
| 36 | New Jersey | 1.4% | 13.2% | 10.75% | 26 million |
| 37 | North Dakota | 1.1% | 8.8% | 2.9% | 2 million |
| 38 | California | 1% | 13.5% | 13.3% | 109 million |
| 39 | Georgia | 1% | 8.9% | 5.75% | 31 million |
| 40 | Idaho | 1% | 10.7% | 6.93% | 5 million |
| 41 | Montana | 1% | 10.5% | 4.9% | 3 million |
| 42 | Iowa | 0.33% | 11.2% | 8.53% | 9 million |
| 43 | Oklahoma | 0.25% | 9% | 4.75% | 12 million |
| 44 | Alaska | 0% | 4.6% | 0% | 2 million |
| 45 | Florida | 0% | 9.1% | 0% | 68 million |
| 46 | Nevada | 0% | 9.6% | 0% | 10 million |
| 47 | South Carolina | 0% | 8.9% | 7% | 15 million |
| 48 | South Dakota | 0% | 8.4% | 0% | 3 million |
| 49 | Tennessee | 0% | 7.6% | 0% | 21 million |
| 50 | Texas | 0% | 8.6% | 0% | 92 million |
| 51 | Wyoming | 0% | 7.5% | 0% | 2 million |
State Tax Rankings
Here is a list of the income tax rate by state, from the lowest income tax rate to the highest :
1. Alaska – 0%
2. Florida – 0%
3. Nevada – 0%
4. South Carolina – 0%
5. South Dakota – 0%
6. Tennessee – 0%
7. Texas – 0%
8. Wyoming – 0%
9. Oklahoma – 0.25%
10. Iowa – 0.33%
11. California – 1%
12. Georgia – 1%
13. Idaho – 1%
14. Montana – 1%
15. North Dakota – 1.10%
16. Hawaii – 1.40%
17. New Jersey – 1.40%
18. Missouri – 1.50%
19. New Mexico – 1.70%
20. Louisiana – 1.85%
21. Alabama – 2%
22. Arkansas – 2%
23. Maryland – 2%
24. Virginia – 2%
25. Delaware – 2.20%
26. Nebraska – 2.46%
27. Arizona – 2.59%
28. Ohio – 2.77%
29. Connecticut – 3%
30. West Virginia – 3%
31. Pennsylvania – 3.07%
32. Kansas – 3.10%
33. Indiana – 3.23%
34. Vermont – 3.35%
35. Wisconsin – 3.54%
36. Rhode Island – 3.75%
37. District of Columbia – 4%
38. Mississippi – 4%
39. New York – 4%
40. Michigan – 4.25%
41. Colorado – 4.55%
42. Oregon – 4.75%
43. Illinois – 4.95%
44. Utah – 4.95%
45. North Carolina – 4.99%
46. Kentucky – 5%
47. Massachusetts – 5%
48. New Hampshire – 5%
49. Minnesota – 5.35%
50. Maine – 5.80%
51. Washington – 7%
State Tax Rates
Alabama
Ranked in the US
#28
Ranked in the US
#30
Ranked in the US
#27
Amount of Individual Income Tax Refunds
15 million
Ranked in the US
#24
Alabama has a 2% income tax rate, placing it among the states with relatively low income tax rates.
Alaska
Ranked in the US
#44
Ranked in the US
#51
Ranked in the US
#44
Amount of Individual Income Tax Refunds
2 million
Ranked in the US
#48
Alaska has a 0% income tax rate, ranking it among the states with the lowest income tax rates.
Arizona
2.59%
Ranked in the US
#25
Ranked in the US
#37
Ranked in the US
#38
Amount of Individual Income Tax Refunds
21 million
Ranked in the US
#15
Arizona has a 2.59% income tax rate, placing it among the states with relatively low income tax rates.
Arkansas
Ranked in the US
#29
Ranked in the US
#26
Ranked in the US
#25
Amount of Individual Income Tax Refunds
9 million
Ranked in the US
#34
Arkansas' income tax rate is 2%, ranking it among the states with relatively low income tax rates.
California
Ranked in the US
#38
Ranked in the US
#5
Ranked in the US
#1
Amount of Individual Income Tax Refunds
109 million
Ranked in the US
#1
California has a 1% income tax rate, making it one of the states with relatively low income tax rates.
Colorado
4.55%
Ranked in the US
#11
Ranked in the US
#33
Ranked in the US
#37
Amount of Individual Income Tax Refunds
16 million
Ranked in the US
#21
Colorado has a 4.55% income tax rate, placing it among the states with the highest income tax rates in the US.
Connecticut
Ranked in the US
#22
Ranked in the US
#2
Ranked in the US
#13
Amount of Individual Income Tax Refunds
10 million
Ranked in the US
#29
Connecticut has a 3% income tax rate, making it one of the states with relatively low income tax rates.
Delaware
2.2%
Ranked in the US
#27
Ranked in the US
#9
Ranked in the US
#16
Amount of Individual Income Tax Refunds
3 million
Ranked in the US
#45
Delaware has a 2.20% income tax rate, ranking it among the states with relatively low income tax rates.
District of Columbia
Ranked in the US
#13
Ranked in the US
#13
Ranked in the US
#20
Amount of Individual Income Tax Refunds
2 million
Ranked in the US
#51
The District of Columbia has a 4% income tax rate, ranking it among the places with the highest income tax rates in the US.
Florida
Ranked in the US
#45
Ranked in the US
#40
Ranked in the US
#45
Amount of Individual Income Tax Refunds
68 million
Ranked in the US
#3
Florida also has a 0% income tax rate, making it one of the states with the lowest income tax rates.
Georgia
Ranked in the US
#39
Ranked in the US
#43
Ranked in the US
#21
Amount of Individual Income Tax Refunds
31 million
Ranked in the US
#8
Georgia's income tax rate is 1%, placing it among the states with relatively low income tax rates.
Hawaii
1.4%
Ranked in the US
#35
Ranked in the US
#3
Ranked in the US
#9
Amount of Individual Income Tax Refunds
4 million
Ranked in the US
#40
Hawaii's income tax rate is 1.40%, ranking it among the states with relatively low income tax rates.
Idaho
Ranked in the US
#40
Ranked in the US
#22
Ranked in the US
#14
Amount of Individual Income Tax Refunds
5 million
Ranked in the US
#39
Idaho has a 1% income tax rate, ranking it among the states with relatively low income tax rates.
Illinois
4.95%
Ranked in the US
#8
Ranked in the US
#7
Ranked in the US
#32
Amount of Individual Income Tax Refunds
37 million
Ranked in the US
#6
Illinois has a 4.95% income tax rate, ranking it among the states with the highest income tax rates in the US.
Indiana
3.23%
Ranked in the US
#19
Ranked in the US
#38
Ranked in the US
#41
Amount of Individual Income Tax Refunds
21 million
Ranked in the US
#16
Indiana has a 3.23% income tax rate, making it one of the states with the highest income tax rates in the US.
Iowa
0.33%
Ranked in the US
#42
Ranked in the US
#18
Ranked in the US
#7
Amount of Individual Income Tax Refunds
9 million
Ranked in the US
#32
Iowa's income tax rate is 0.33%, ranking it among the states with relatively low income tax rates.
Kansas
3.1%
Ranked in the US
#20
Ranked in the US
#19
Ranked in the US
#24
Amount of Individual Income Tax Refunds
8 million
Ranked in the US
#35
Kansas has a 3.10% income tax rate, placing it among the states with the highest income tax rates in the US.
Kentucky
Ranked in the US
#4
Ranked in the US
#34
Ranked in the US
#28
Amount of Individual Income Tax Refunds
14 million
Ranked in the US
#26
Kentucky has a 5% income tax rate, ranking it among the states with the highest income tax rates in the US.
Louisiana
1.85%
Ranked in the US
#32
Ranked in the US
#41
Ranked in the US
#39
Amount of Individual Income Tax Refunds
14 million
Ranked in the US
#25
Louisiana's income tax rate is 1.85%, making it one of the states with relatively low income tax rates.
Maine
5.8%
Ranked in the US
#2
Ranked in the US
#10
Ranked in the US
#10
Amount of Individual Income Tax Refunds
4 million
Ranked in the US
#42
Maine has a 5.80% income tax rate, placing it among the states with the highest income tax rates in the US.
Maryland
Ranked in the US
#30
Ranked in the US
#17
Ranked in the US
#22
Amount of Individual Income Tax Refunds
17 million
Ranked in the US
#20
Maryland has a 2% income tax rate, making it one of the states with relatively low income tax rates.
Massachusetts
Ranked in the US
#5
Ranked in the US
#14
Ranked in the US
#29
Amount of Individual Income Tax Refunds
19 million
Ranked in the US
#17
Massachusetts has a 5% income tax rate, placing it among the states with the highest income tax rates in the US.
Michigan
4.25%
Ranked in the US
#12
Ranked in the US
#46
Ranked in the US
#40
Amount of Individual Income Tax Refunds
30 million
Ranked in the US
#9
Michigan has a 4.25% income tax rate, ranking it among the states with the highest income tax rates in the US.
Minnesota
5.35%
Ranked in the US
#3
Ranked in the US
#11
Ranked in the US
#4
Amount of Individual Income Tax Refunds
16 million
Ranked in the US
#22
Minnesota has a 5.35% income tax rate, ranking it among the states with the highest income tax rates in the US.
Mississippi
Ranked in the US
#14
Ranked in the US
#31
Ranked in the US
#30
Amount of Individual Income Tax Refunds
9 million
Ranked in the US
#33
Mississippi has a 4% income tax rate, placing it among the states with the highest income tax rates in the US.
Missouri
1.5%
Ranked in the US
#34
Ranked in the US
#39
Ranked in the US
#26
Amount of Individual Income Tax Refunds
18 million
Ranked in the US
#18
Missouri's income tax rate is 1.50%, placing it among the states with relatively low income tax rates.
Montana
Ranked in the US
#41
Ranked in the US
#25
Ranked in the US
#34
Amount of Individual Income Tax Refunds
3 million
Ranked in the US
#44
Montana's income tax rate is 1%, making it one of the states with relatively low income tax rates.
Nebraska
2.46%
Ranked in the US
#26
Ranked in the US
#15
Ranked in the US
#15
Amount of Individual Income Tax Refunds
6 million
Ranked in the US
#37
Nebraska's income tax rate is 2.46%, making it one of the states with relatively low income tax rates.
Nevada
Ranked in the US
#46
Ranked in the US
#35
Ranked in the US
#46
Amount of Individual Income Tax Refunds
10 million
Ranked in the US
#30
Nevada's income tax rate is 0%, placing it among the states with the lowest income tax rates.
New Hampshire
Ranked in the US
#6
Ranked in the US
#36
Ranked in the US
#47
Amount of Individual Income Tax Refunds
4 million
Ranked in the US
#41
New Hampshire has a 5% income tax rate, making it one of the states with the highest income tax rates in the US.
New Jersey
1.4%
Ranked in the US
#36
Ranked in the US
#6
10.75%
Ranked in the US
#2
Amount of Individual Income Tax Refunds
26 million
Ranked in the US
#11
New Jersey has a 1.40% income tax rate, making it one of the states with relatively low income tax rates.
New Mexico
1.7%
Ranked in the US
#33
Ranked in the US
#27
Ranked in the US
#19
Amount of Individual Income Tax Refunds
6 million
Ranked in the US
#36
New Mexico has a 1.70% income tax rate, ranking it among the states with relatively low income tax rates.
New York
Ranked in the US
#15
Ranked in the US
#1
Ranked in the US
#5
Amount of Individual Income Tax Refunds
58 million
Ranked in the US
#4
New York has a 4% income tax rate, making it one of the states with the highest income tax rates in the US.
North Carolina
4.99%
Ranked in the US
#7
Ranked in the US
#29
Ranked in the US
#31
Amount of Individual Income Tax Refunds
30 million
Ranked in the US
#10
North Carolina has a 4.99% income tax rate, making it one of the states with the highest income tax rates in the US.
North Dakota
1.1%
Ranked in the US
#37
Ranked in the US
#45
Ranked in the US
#43
Amount of Individual Income Tax Refunds
2 million
Ranked in the US
#47
North Dakota has a 1.10% income tax rate, placing it among the states with relatively low income tax rates.
Ohio
2.77%
Ranked in the US
#24
Ranked in the US
#28
Ranked in the US
#35
Amount of Individual Income Tax Refunds
35 million
Ranked in the US
#7
Ohio's income tax rate is 2.77%, ranking it among the states with relatively low income tax rates.
Oklahoma
0.25%
Ranked in the US
#43
Ranked in the US
#42
Ranked in the US
#36
Amount of Individual Income Tax Refunds
12 million
Ranked in the US
#27
Oklahoma has a 0.25% income tax rate, placing it among the states with relatively low income tax rates.
Oregon
4.75%
Ranked in the US
#10
Ranked in the US
#21
Ranked in the US
#3
Amount of Individual Income Tax Refunds
12 million
Ranked in the US
#28
Oregon has a 4.75% income tax rate, making it one of the states with the highest income tax rates in the US.
Pennsylvania
3.07%
Ranked in the US
#21
Ranked in the US
#24
Ranked in the US
#42
Amount of Individual Income Tax Refunds
39 million
Ranked in the US
#5
Pennsylvania has a 3.07% income tax rate, ranking it among the states with the highest income tax rates in the US.
Rhode Island
3.75%
Ranked in the US
#16
Ranked in the US
#16
Ranked in the US
#18
Amount of Individual Income Tax Refunds
3 million
Ranked in the US
#43
Rhode Island has a 3.75% income tax rate, making it one of the states with the highest income tax rates in the US.
South Carolina
Ranked in the US
#47
Ranked in the US
#44
Ranked in the US
#11
Amount of Individual Income Tax Refunds
15 million
Ranked in the US
#23
South Carolina has a 0% income tax rate, ranking it among the states with the lowest income tax rates.
South Dakota
Ranked in the US
#48
Ranked in the US
#48
Ranked in the US
#48
Amount of Individual Income Tax Refunds
3 million
Ranked in the US
#46
South Dakota also has a 0% income tax rate, making it one of the states with the lowest income tax rates.
Tennessee
Ranked in the US
#49
Ranked in the US
#49
Ranked in the US
#49
Amount of Individual Income Tax Refunds
21 million
Ranked in the US
#14
Tennessee's income tax rate is 0%, placing it among the states with the lowest income tax rates.
Texas
Ranked in the US
#50
Ranked in the US
#47
Ranked in the US
#50
Amount of Individual Income Tax Refunds
92 million
Ranked in the US
#2
Texas has a 0% income tax rate, ranking it among the states with the lowest income tax rates.
Utah
4.95%
Ranked in the US
#9
Ranked in the US
#12
Ranked in the US
#33
Amount of Individual Income Tax Refunds
10 million
Ranked in the US
#31
Utah has a 4.95% income tax rate, placing it among the states with the highest income tax rates in the US.
Vermont
3.35%
Ranked in the US
#18
Ranked in the US
#4
Ranked in the US
#6
Amount of Individual Income Tax Refunds
2 million
Ranked in the US
#49
Vermont has a 3.35% income tax rate, ranking it among the states with the highest income tax rates in the US.
Virginia
Ranked in the US
#31
Ranked in the US
#8
Ranked in the US
#23
Amount of Individual Income Tax Refunds
24 million
Ranked in the US
#12
Virginia's income tax rate is 2%, placing it among the states with relatively low income tax rates.
Washington
Ranked in the US
#1
Ranked in the US
#23
Ranked in the US
#12
Amount of Individual Income Tax Refunds
22 million
Ranked in the US
#13
Washington has a 7% income tax rate, making it the state with the highest income tax rates in the US.
West Virginia
Ranked in the US
#23
Ranked in the US
#32
Ranked in the US
#17
Amount of Individual Income Tax Refunds
5 million
Ranked in the US
#38
West Virginia's income tax rate is 3%, placing it among the states with relatively low income tax rates.
Wisconsin
3.54%
Ranked in the US
#17
Ranked in the US
#20
Ranked in the US
#8
Amount of Individual Income Tax Refunds
17 million
Ranked in the US
#19
Wisconsin has a 3.54% income tax rate, placing it among the states with the highest income tax rates in the US.
Wyoming
Ranked in the US
#51
Ranked in the US
#50
Ranked in the US
#51
Amount of Individual Income Tax Refunds
2 million
Ranked in the US
#50
Wyoming's income tax rate is 0%, making it one of the states with the lowest income tax rates.
FAQs
What states have state income tax ?
The states that have a state income tax above zero are Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and the District of Columbia.
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