Your Guide to State Income Tax Rates

Updated on January 23, 2023

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Key Takeaways

California, Hawaii, New York, New Jersey, and Oregon have some of the highest state income tax rates in the country.
Seven U.S. states charge no tax on earned income at all.
Another 10 U.S states have a flat tax rate—everyone pays the same percentage regardless of how much they earn.

Location is everything if you want to save a few income tax dollars. Overall, state tax rates range from 0% to more than 13%.

Learn which states have the highest tax rates, no taxes, and flat taxes; and see a complete list of tax rates for every state in the union.

Top Income Tax Rates by State

Below, you'll find the top 10 states with the highest income tax rates.

State	Top Income Tax Rate
California	13.3%
Hawaii	11%
New York	10.9%
New Jersey	10.75%
Oregon	9.9%
Minnesota	9.85%
District of Columbia	9.75%
Vermont	8.75%
Iowa	8.53%
Wisconsin	7.65%

California tops the list with the highest income tax rates in the country; its highest tax rate is 12.3%, but it also implements an additional tax on those with income of $1 million or more, which makes its highest actual tax rate 13.3%. New Jersey and New York also implement this type of "millionaire's tax."

Other states have a top tax rate, but not all states have the same number of income brackets leading up to the top rate. For example, Hawaii has a top tax rate of 11% and 12 income brackets, while Iowa has a top tax rate of 8.53% and nine income brackets. And although Washington, D.C.. is not a state, it has its own income tax rate.

States Without Income Tax

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming don’t impose an income tax at all. New Hampshire falls into a gray area; it doesn't levy a tax on earned income, but it does tax interest and dividends at a flat 5%.

Since they don't collect income tax, some states generate revenue in other ways. Tennessee has one of the highest combined state and local sales tax rates in the country. Your paycheck might be safe, but you'll be dinged at the cash register. New Hampshire and Texas have high property taxes in relation to home values. Pennsylvania charged the highest tax on gasoline in 2021.

States With Flat Tax Rates

Among the states that do have income taxes, many residents get a break because the highest rates don't kick in until upper-income levels. But this isn't the case in the 10 states that have flat tax rates. The flat-tax states and their rates, from highest to lowest, can be seen in the table below.

State	Flat Tax Rate
Massachusetts	5%
Kentucky	5%
New Hampshire	5% (interest and dividend income only)
North Carolina	4.99%
Illinois	4.95%
Utah	4.95%
Colorado	4.55%
Michigan	4.25%
Indiana	3.23%
Pennsylvania	3.07%

A State-by-State Comparison of Income Tax Rates

The remaining states and Washington, D.C., charge a "progressive" tax on all income, based on tax brackets. The more you earn, the higher the percentage you'll pay in income tax on your top dollars. For example, California's top rate is 13.3%, but you'll only pay this on income over $1 million.

The rates and income thresholds for individuals filing single for tax year 2022, including those states that have no income tax and those who tax at a flat rate, are as follows:

State	Tax Rates	Lowest and Highest Income Brackets
Alabama	2% to 5%	$500 and $3,001
Alaska	0%	None
Arizona	2.59% to 4.5%	$27,806 and $166,843
Arkansas	2% to 5.5%	$4,300 and $8,501
California	1% to 13.3%	$9,325 and $1 million
Colorado	4.55%	Flat rate applies to all incomes
Connecticut	3% to 6.99%	$10,000 and $500,000
Delaware	0% to 6.6%	$2,000 and $60,001
Florida	0%	None
Georgia	1% to 5.75%	$750 and $7,001
Hawaii	1.4% to 11%	$2,400 and $200,000
Idaho	1.125% to 6.5%	$1,568 and $7,939
Illinois	4.95%	Flat rate applies to all incomes
Indiana	3.23%	Flat rate applies to all incomes
Iowa	0.33% to 8.53%	$1,743 and $78,435
Kansas	3.1% to 5.7%	$15,000 and $30,000
Kentucky	5%	Flat rate applies to all incomes
Louisiana	1.85% to 4.25%	$12,500 and $50,001
Maine	5.8% to 7.15%	$23,000 and $54,450
Maryland	2% to 5.75%	$1,000 and $250,000
Massachusetts	5%	Flat rate applies to all incomes
Michigan	4.25%	Flat rate applies to all incomes
Minnesota	5.35% to 9.85%	$28,080 and $171,221
Mississippi	0% to 5%	$5,000 and $10,001
Missouri	1.5% to 5.3%	$1,121 and $8,968
Montana	1% to 6.75%	$2,900and $17,400
Nebraska	2.46% to 6.84%	$3,340 and $32,210
Nevada	0%	None
New Hampshire	5%	Flat rate on interest and dividend income only
New Jersey	1.4% to 10.75%	$20,000 and $1 million
New Mexico	1.7% to 5.9%	$5,500 and $210,000
New York	4% to 10.9%	$8,500 and $25 million
North Carolina	4.99%	Flat rate applies to all incomes
North Dakota	1.1% to 2.9%	$41,775 and $458,350
Ohio	0% to 3.99%	$25,000 and $110,650
Oklahoma	0.25% to 4.75%	$1,000 and $7,200
Oregon	4.75% to 9.9%	$3,750 and $125,000
Pennsylvania	3.07%	Flat rate applies to all incomes
Rhode Island	3.75% to 5.99%	$68,200 and $155,050
South Carolina	0% to 7%	$3,110 and $15,560
South Dakota	0%	None
Tennessee	0%	None
Texas	0%	None
Utah	4.95%	Flat rate applies to all incomes
Vermont	3.35% to 8.75%	$42,150 and $213,150
Virginia	2% to 5.75%	$3,000 and $17,001
Washington	0%	None
Washington, D.C.	4% to 9.75%	$10,000 and $1 million
West Virginia	3% to 6.5%	$10,000 and $60,000
Wisconsin	3.54% to 7.65%	$12,760 and $280,950
Wyoming	0%	None

Frequently Asked Questions (FAQs)

How is state income tax money used?

Tax revenue is used according to state budgets. The budgeting process differs by state, but in general, it mirrors the federal process of legislative and executive branches coming to a spending agreement.

Where do you pay income tax for out-of-state work?

Always expect to file income taxes in the state where you live. If you cross state lines for your job, you may or may not have to file taxes in another state, too. Some states have agreements that allow workers to only file taxes where they live, regardless of where they work. Check with a tax professional to learn how state laws may apply to your situation.

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