Most Americans pay both federal and state income taxes. Forty-one states plus Washington D.C. impose their own income tax, with rates ranging from a flat 2.5% in Arizona to a top marginal rate of 13.3% in California.
Table of Contents
State Income Tax Rates: Complete Table
| State | Tax Type | Top Rate | Number of Brackets |
|---|---|---|---|
| Alabama | Graduated | 5.00% | 3 |
| Alaska | None | 0% | — |
| Arizona | Flat | 2.50% | 1 |
| Arkansas | Graduated | 3.9% | 3 |
| California | Graduated | 13.30% | 10 |
| Colorado | Flat | 4.40% | 1 |
| Connecticut | Graduated | 6.99% | 7 |
| Delaware | Graduated | 6.60% | 7 |
| Florida | None | 0% | — |
| Georgia | Flat | 5.49% | 1 |
| Hawaii | Graduated | 11.00% | 12 |
| Idaho | Flat | 5.80% | 1 |
| Illinois | Flat | 4.95% | 1 |
| Indiana | Flat | 3.05% | 1 |
| Iowa | Graduated | 5.7% | 4 |
| Kansas | Graduated | 5.70% | 3 |
| Kentucky | Flat | 4.00% | 1 |
| Louisiana | Graduated | 4.25% | 3 |
| Maine | Graduated | 7.15% | 3 |
| Maryland | Graduated | 5.75% | 8 |
| Massachusetts | Flat | 5.00% | 1 |
| Michigan | Flat | 4.25% | 1 |
| Minnesota | Graduated | 9.85% | 4 |
| Mississippi | Flat | 4.70% | 1 |
| Missouri | Graduated | 4.80% | 5 |
| Montana | Graduated | 5.90% | 2 |
| Nebraska | Graduated | 5.84% | 4 |
| Nevada | None | 0% | — |
| New Hampshire | None | 0% | — |
| New Jersey | Graduated | 10.75% | 7 |
| New Mexico | Graduated | 5.90% | 5 |
| New York | Graduated | 10.90% | 9 |
| North Carolina | Flat | 4.50% | 1 |
| North Dakota | Graduated | 2.50% | 2 |
| Ohio | Graduated | 3.50% | 3 |
| Oklahoma | Graduated | 4.75% | 6 |
| Oregon | Graduated | 9.90% | 4 |
| Pennsylvania | Flat | 3.07% | 1 |
| Rhode Island | Graduated | 5.99% | 3 |
| South Carolina | Graduated | 6.40% | 3 |
| South Dakota | None | 0% | — |
| Tennessee | None | 0% | — |
| Texas | None | 0% | — |
| Utah | Flat | 4.65% | 1 |
| Vermont | Graduated | 8.75% | 4 |
| Virginia | Graduated | 5.75% | 4 |
| Washington | None | 0% | — |
| West Virginia | Graduated | 5.12% | 4 |
| Wisconsin | Graduated | 7.65% | 4 |
| Wyoming | None | 0% | — |
| Washington D.C. | Graduated | 10.75% | 7 |
States With No Income Tax
Nine states impose no state income tax on wages:
- Alaska
- Florida
- Nevada
- New Hampshire (phased out tax on interest/dividends as of 2025)
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
While no income tax sounds appealing, these states often make up revenue through higher sales taxes, property taxes, or other fees. Texas and Washington, for example, have notably higher property and sales tax rates.
Highest State Income Tax Rates
| Rank | State | Top Marginal Rate |
|---|---|---|
| 1 | California | 13.30% |
| 2 | Hawaii | 11.00% |
| 3 | New York | 10.90% |
| 4 | New Jersey | 10.75% |
| 5 | Washington D.C. | 10.75% |
| 6 | Oregon | 9.90% |
| 7 | Minnesota | 9.85% |
| 8 | Vermont | 8.75% |
| 9 | Wisconsin | 7.65% |
| 10 | Maine | 7.15% |
Lowest State Income Tax Rates (Excluding Zero)
| Rank | State | Top Rate |
|---|---|---|
| 1 | Arizona | 2.50% |
| 2 | North Dakota | 2.50% |
| 3 | Pennsylvania | 3.07% |
| 4 | Indiana | 3.05% |
| 5 | Ohio | 3.50% |
Flat Tax vs. Graduated Tax States
Flat tax states charge the same rate on all income regardless of how much you earn. Graduated states have multiple brackets where higher income is taxed at progressively higher rates.
Flat tax states tend to be more favorable for high earners, while graduated states are more favorable for low-to-moderate earners.
Flat Tax States
| State | Rate |
|---|---|
| Arizona | 2.50% |
| Colorado | 4.40% |
| Georgia | 5.49% |
| Idaho | 5.80% |
| Illinois | 4.95% |
| Indiana | 3.05% |
| Kentucky | 4.00% |
| Massachusetts | 5.00% |
| Michigan | 4.25% |
| Mississippi | 4.70% |
| North Carolina | 4.50% |
| Pennsylvania | 3.07% |
| Utah | 4.65% |
How State Income Tax Affects Take-Home Pay
For someone earning $75,000, the difference in state income tax can be dramatic:
| State | State Tax Owed | Monthly Impact |
|---|---|---|
| Texas (0%) | $0 | $0 |
| Pennsylvania (3.07%) | $2,303 | $192 |
| Illinois (4.95%) | $3,713 | $309 |
| California (max 9.3% at this level) | ~$3,400 | $283 |
| New York (max 6.85% at this level) | ~$3,700 | $308 |
The actual amounts vary based on state-specific deductions, exemptions, and bracket structures.
State Tax Trends
Several states have recently reduced or eliminated income taxes:
- Iowa is phasing down to a 3.9% flat rate
- Mississippi reduced its rate to 4.7% and plans further reductions
- Georgia moved to a 5.49% flat rate
- Arkansas lowered its top rate to 3.9%
Meanwhile, some states have added higher brackets for top earners:
- Massachusetts added a 4% surtax on income over $1 million (total 9%)
- New York extended temporary high-earner brackets
Related: Federal Income Tax Brackets | States With No Income Tax | Average Income by State
