State Tax Chart: Income, Sales, Estate, Inheritance, and Gift Taxes

Updated on November 30, 2022

Reviewed by

Idaho state capitol building — Photo:
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If you're thinking about relocating from one state to another, it's important to consider the taxes you'll encounter in your new state of residence. All but seven states collect some form of income tax and most collect sales tax as well. A dozen and a half collect some form of "death tax," but only one imposes a gift tax. Let's take a look at the states that have these taxes.

Key Takeaways

Seven states don't have income taxes: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
California has the highest income tax, followed by Hawaii and New Jersey.
Five states don't have a statewide sales tax (Alaska, Delaware, Montana, New Hampshire, and Oregon), though you may still end up paying local sales taxes.
Eighteen states have inheritance or estate taxes, and only one (Connecticut) has a gift tax.

Overview of State Taxes in a Chart

The chart below shows which states currently collect state individual income taxes, state sales taxes, state estate taxes, state inheritance taxes, and/or state gift taxes. Note that local governments at the county or city level may collect taxes even if the state does not.

State	Individual Income Tax	Sales Tax	Estate Tax	Inheritance Tax	Gift Tax
Alabama	Yes	Yes	No	No	No
Alaska	No	No	No	No	No
Arizona	Yes	Yes	No	No	No
Arkansas	Yes	Yes	No	No	No
California	Yes	Yes	No	No	No
Colorado	Yes	Yes	No	No	No
Connecticut	Yes	Yes	Yes	No	Yes
Delaware	Yes	No	No	No	No
District of Columbia	Yes	Yes	Yes	No	No
Florida	No	Yes	No	No	No
Georgia	Yes	Yes	No	No	No
Hawaii	Yes	Yes	Yes	No	No
Idaho	Yes	Yes	No	No	No
Illinois	Yes	Yes	Yes	No	No
Indiana	Yes	Yes	No	No	No
Iowa	Yes	Yes	No	Yes	No
Kansas	Yes	Yes	No	No	No
Kentucky	Yes	Yes	No	Yes	No
Louisiana	Yes	Yes	No	No	No
Maine	Yes	Yes	Yes	No	No
Maryland	Yes	Yes	Yes	Yes	No
Massachusetts	Yes	Yes	Yes	No	No
Michigan	Yes	Yes	No	No	No
Minnesota	Yes	Yes	Yes	No	No
Mississippi	Yes	Yes	No	No	No
Missouri	Yes	Yes	No	No	No
Montana	Yes	No	No	No	No
Nebraska	Yes	Yes	No	Yes	No
Nevada	No	Yes	No	No	No
New Hampshire	*Yes	No	No	No	No
New Jersey	Yes	Yes	No	Yes	No
New Mexico	Yes	Yes	No	No	No
New York	Yes	Yes	Yes	No	No
North Carolina	Yes	Yes	No	No	No
North Dakota	Yes	Yes	No	No	No
Ohio	Yes	Yes	No	No	No
Oklahoma	Yes	Yes	No	No	No
Oregon	Yes	No	Yes	No	No
Pennsylvania	Yes	Yes	No	Yes	No
Rhode Island	Yes	Yes	Yes	No	No
South Carolina	Yes	Yes	No	No	No
South Dakota	No	Yes	No	No	No
Tennessee	*Yes	Yes	No	No	No
Texas	No	Yes	No	No	No
Utah	Yes	Yes	No	No	No
Vermont	Yes	Yes	Yes	No	No
Virginia	Yes	Yes	No	No	No
Washington	No	Yes	Yes	No	No
West Virginia	Yes	Yes	No	No	No
Wisconsin	Yes	Yes	No	No	No
Wyoming	No	Yes	No	No	No

*See notes about New Hampshire and Tennessee below.

State Income Taxes

The following seven states exempt residents from all income tax liability: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Although New Hampshire and Tennessee don't tax a resident's wages and salary, these states do tax interest and dividends. (New Hampshire's interest & dividends tax will be gradually phased out between 2023 and 2026.)

If you are relocating to another state, be sure to check out the filing dates for completing state tax returns and paying taxes. Also, some states may offer tax amnesty programs that will waive any late filing fees.

State Sales Taxes

The following five states do not collect a state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, you may still end up paying sales tax or something like it in some of these states. For example, many localities in Alaska collect local sales taxes, ranging from 1% to 7%. Delaware collects a gross receipts tax from businesses that sell goods, which range from 0.0945% to 0.7468%, depending on the type of business activity.

And finally, New Hampshire collects a tax on patrons of restaurants, hotels, bars, and on car rentals.

State Estate Taxes

Estate taxes, which are paid by the estate and based on the overall value of an estate, are currently collected in 12 states: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. The District of Columbia also imposes estate taxes.

State Inheritance Taxes

Inheritance taxes, which are calculated based on who inherits the estate as opposed to the overall value of the estate, are currently collected in six states: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Notice that Maryland collects state estate taxes and inheritance taxes. Iowa is in the process of phasing out its inheritance tax, and will end it in 2025.

State Gift Taxes

Connecticut is the only state that collects gift taxes at the state level.

Frequently Asked Questions (FAQs)

Which states have the highest income taxes?

California has the highest individual taxes, with rates ranging up to 13.30%. Hawaii is next, with a top rate of 11%. and New Jersey follows with a max rate of 10.75%

What is the federal inheritance tax?

There is no federal inheritance tax, but there is a federal estate tax. It ranges from 18% to 40% depending on the taxable amount. But many estates will never pay taxes because there is a large exemption. In 2022 the exemption is $12.06 million and that goes up to $12.92 million in 2023. That means more than $12 million is exempt from federal estate taxes.

What does the term "state taxes" mean?

State taxes are all the taxes imposed or collected by a state. They may include income taxes, sales and excise taxes, inheritance taxes, estate taxes, and gift taxes.

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Sources

The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.

Tennessee Department of Revenue. "HIT-1 - Tennessee Income Tax on Interest and Dividend Income."
New Hampshire Department of Revenue Administration. "Frequently Asked Questions - Interest & Dividend Tax."
Delaware.gov. "Gross Receipts Tax FAQs."
New Hampshire Department of Revenue Administration. "Meals & Rooms (Rentals) Tax Data."
Tax Foundation. "Does Your State Have an Estate or Inheritance Tax?"
Tax Foundation. "Does Your State Have an Estate or Inheritance Tax?"
Iowa Department of Revenue. "Iowa Inheritance Tax Rates: 2021."
Connecticut State Department of Revenue Services. "Estate and Gift Tax Information."
IRS. "Instructions for Form 706."
IRS. "IRS Provides Tax Inflation Adjustments for Tax Year 2023."