Like most people in the US, you probably feel like you pay tons of taxes without ever seeing a refund. Especially if you live in one of those "high tax" states - like California or New York.
Do you ever wonder how your state stacks up against other states? Did you know that if you make under $50,000 per year, you're probably paying more taxes in Alabama than in California...
Taxes matter, but most people get the argument around state income taxes wrong. And with everything going on in the country today, we decided to look at what income taxes look like in all 50 states.
If you're considering moving to pay lower taxes, or relocating to another state for career opportunities, you need to know what differences you can expect to pay nationwide.
Not All Taxes Are Created Equal
Did you know that 43 states have wage and salary taxes, while two states only tax dividends and interest income?
Of these 43 states, most of them have tax brackets and tiered tax brackets with taxes varying by each income bracket, while others have one rate applying to all taxable income.
7 States have no income tax at all: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Don’t get too excited, though - when a state has no income tax, it generally makes up for lost tax revenue with higher sales or property taxes.
Also, some states have different tax rates depending on your filing status, whether you are single or married. Many states expand the tax brackets for married couples to avoid the “marriage penalty” which otherwise penalizes married couples with dual income by taxing them in the same brackets as single taxpayers.
If income up to $5,000 is taxed 2% for married and single taxpayers, married taxpayers would pay more because there is the likelihood and potential for two people to earn money instead of one, resulting in a higher tax rate.
Other filing statuses, such as married filing separately or head of household, have their own set of advantages and disadvantages with federal and state income tax. Most of the time, married filing separately means splitting married filing joint status in half, and foregoing certain credits permitted to married couples that file jointly.
Head of Household often allows a higher standard deduction than filing single, along with federal and state credits that may help lower taxes if you meet head of household requirements. For the purpose of simplicity, we have included all the state tax information you need for single and married filing joint returns.
How Do Tax Brackets Work?
States that follow the tax bracket method give you one tax rate applicable to the bracket your taxable income falls under.
If you are a single person in California with a taxable income of $15,000, we look up your taxable income bracket on the following state tax table:
Income | Tax Bracket |
|---|---|
$0.00 - $9,325 | 1% |
$9,326 - $22,107 | 2% |
$22,108 - $34,892 | 4% |
$34,893 - $48,435 | 6% |
$48,436 - $61,214 | 8% |
$61,215 - $312,686 | 9.3% |
$312,687 - $375,221 | 10.3% |
$375,223 - $625,369 | 11.3% |
$625,370 and up | 12.3% |
If your taxable income is $15,000, you would think you'd just owe 2% of $15,000, which is $300. But that's not how it works.
In the United States, tax brackets are tiered (or progressive). You are not just paying taxes within your income bracket. Instead, you are paying all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar.
So, in California, if you make $15,000, you'd pay about $206.75. This is, of course, before deductions and tax credits.
How did we get that?
You pay 1% on your first $9,325 = $93.25.
You pay 2% on the money from $9,325 to $15,000 = $113.50
That makes your total tax $206.75.
If that makes your head spin, let’s take another example.
If you are a single person in Alabama with a taxable income of $15,000, we look up your taxable income bracket on the following state tax table:
Below $500 = 2%
$500-$3000 = 4% + $20
Above $3000 = 5% + $110
If your taxable income is $15,000, you owe 5% of $15,000 ($750) plus an additional $110, giving you a total tax of $860.
Yes, you'll pay about $600 more in state taxes in Alabama than you would in California.
How Do Flat Taxes Work?
Several states utilize a flat tax for their income tax. For example, Illinois and Indiana both charge a flat income tax to their residents, based on their Federal income tax.
For example, in Illinois, the flat tax is simply 4.95% of Federal taxable income, regardless of the amount.
What Is Being Taxed?
Usually, state tax is very similar to the calculations for your federal taxable income. However, many states offer credits and exemptions that will often reduce your federal taxable income. Otherwise, taxable income normally falls into any of these categories:
What Is The Income Tax Rate In My State?
Your adjusted gross income (AGI) is not necessarily going to be the same for federal and state. Some states add back certain deductions from your federal tax return, and other states allow deductions for items not included in your federal tax return. In order to accurately calculate your tax, follow the instructions on your state tax return.
State | Rates For Single Filers | Rates For Married Filing Jointly | Other Useful Information |
|---|---|---|---|
Alabama | Below $500 = 2% $500-$3000 = 4% + $20 Above $3000 = 5% + $110 | Below $1000 = 2% $1000-$6000 = 4% + $20 Above $6000 = 5% + $220 | Alabama follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Alaska | No State Income Tax In Alaska. | No State Income Tax In Alaska. | Alaska does not tax personal income. Instead, both children and adults receive a payment each year from the Alaska Permanent Fund Corporation. There are still local sales taxes from 0% - 7.5%, as well as property taxes. |
Arizona | Up to $10,000 = 2.59% $10,001 - $25,000 = 2.88% $25,001 - $50,000 = 3.36% $50,001 - $150,000 = 4.24% $150,001 and up = 4.54% | Up to $20,000 =2.59% $20,001 - $50,000 = 2.88% $50,001 - $100,000 = 3.36% $100,001 - $300,000 = 4.24% $300,001 and up = 4.54% | Arizona follows the tax bracket method, but you only pay the tax included in your tax bracket. This means that the marginal rate only applies to earnings within the applicable marginal tax bracket. |
Arkansas | $0.00 - $4,299 = 0.9% $4,300 - $8,399 = 2.5% + $38.69 $8,400 - $12,599 = 3.5% + $141.19 $12,600 - $20,999 = 4.5% + $288.19 $21,000 - $35,099 = 6% + $666.19 $35,100 and up = 6.9% + $1,512.19 | $0.00 - $4,299 = 0.9% $4,300 - $8,399 = 2.5% + $38.69 $8,400 - $12,599 = 3.5% + $141.19 $12,600 - $20,999 = 4.5% + $288.19 $21,000 - $35,099 = 6% + $666.19 $35,100 and up = 6.9% + $1,512.19 | Arkansas follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
California | $0.00 - $9,325 = 1% $9,326 - $22,107 = 2% $22,107 - $34,892 = 4% $34,893 - $48,435 = 6% $48,435 - $61,214 = 8% $61,215 – $312,686 = 9.3% $312,686- $375,221 = 10.30% $375,223 - $625,369 = 11.30% $625,370 and up = 12.30% | $0.00 - $18,650 = 1% $18,651 - $44,214 = 2% $44,215 - $69,784 = 4% $69,785 - $96,870 = 6% $96,871 - $122,428 = 8% $122,429 – $625,372= 9.3% $625,373 - $750,442 = 10.30% $750,443 - $1,250,738 = 11.30% $1,250,739 and up = 12.30% | California follows the tax bracket method, but you only pay the tax included in your tax bracket. This means that the marginal rate only applies to earnings within the applicable marginal tax bracket. |
Colorado | 4.63% of federal taxable income | 4.63% of federal taxable income | Colorado has a flat tax rate of 4.63% on your federal taxable income. |
Connecticut | $0.00 $10,000 = 3% $10,001 - $50,000 = 5% + $300 $50,001- $100,000 = 5.5% + $2,300 $100,001 - $200,000 = 6% + $5,050 $200,001 - $250,000 = 6.5% + $11,050 $250,001 - $500,000 = 6.9% + $14,300 $500,001 and up = 6.99% + $31,550 | $0.00 - $20,000 = 3% $20,001- $100,000 = 5% + $600 $100,001 - $200,000 = 5.5% + $4,600 $200,001 - $400,000 = 6% + $10,100 $400,001 - $500,000 = 6.5% + $22,100 $500,001 + $1,000,000 = 6.9% + $28,600 $1,000,001 and up = 6.99% + $63,100 | Connecticut follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Delaware | $0.00 - $2,000 = 0% $2,001 - $5,000 = 2.2% $5,001 - $10,000 = 3.9% + $66.00 $10,001 - $20,000 = 4.8% + $261.00 $20,001 - $25,000 = 5.2% + $741.00 $25,001 - $60,000 = 5.55% +$1,001.00 $60,001 and up = 6.6% + $2,943.50 | $0.00 - $2,000 = 0% $2,001 - $5,000 = 2.2% $5,001 - $10,000 = 3.9% + $66.00 $10,001 - $20,000 = 4.8% + $261.00 $20,001 - $25,000 = 5.2% + $741.00 $25,001 - $60,000 = 5.55% +$1,001.00 $60,001 and up = 6.6% + $2,943.50 | Delaware follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Florida | Florida Has No State Income Tax | Florida Has No State Income Tax | Florida has no state income tax, making it an attractive option for retirees who want to save money on taxes. |
Georgia | 0 - $750: 1% $751 - $2,250 = 2% plus $7.50 $2,251- $3,750 = 3% + $37.50 $3,751-$5,250 = 4% + $82.50 $5,251 - $7,000 = 5% + 142.50 $7,001 and up = 6$ plus $230 | 0.00 - $1000: 1% $1,001 - $3,000 = 2% plus $10.00 $3,001 - $5,000 = 3% + $50.00 $5,001 - $7,000 = 4% + $110.00 $7,001 - $10,000 = 5% + 190.00 $10,001 and up = 6$ plus $340 | Georgia follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Hawaii | $0.00 - $2,400 = 1.4% $2,401-$4,800 = 3.2% + $33.60 $4,801 - $9,600 = 5.5% + 110.40 $9,600 - $14,400 = 6.4% + $374.40 $14,401 - $19,200 = 6.8% + $681.60 $19,201 - $24,000 = 7.2% +$1,008.00 $24,001 - $36,000 = 7.6% + $1,353.60 $36,001 – 48,000 = 7.9% + $2,265 $48,000 and up = 8.25% + $3,213.60 | $0.00 - $4,800 = 1.4% $4,801- $9,600 = 3.2% + $67.20 $9,601 - $19,200 = 5.5% + $220.80 $19,201 - $28,800 = 6.4% + $748.80 $28,801 - $38,400 = 6.8% + $1,363.20 $38,401 - $48,000 = 7.2% + $2,016.00 $48,001 - $72,000 = 7.6% + $2,707.20 $72,000 - $96,000 = 7.9% + $4,531.20 $96,000 and up = 8.25% + $6,427.20 | Hawaii follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Idaho | $0.00 - $1,452 = 1.6% $1,452 - $2,940 = 3.6% + $23.23 $2,941 - $4,356 = 4.1% + $76.80 $4,357 – $5,808 = 5.1% + $134.86 $5,809 - $7,260 = 6.1% + $208.91 $7,261 - $10,890 = 7.1% +$297.48 $10,891 and up = 7.4% + $555.21 | $0.00 - $2,904 = 1.6% $2,905 - $5,808 = 3.6% + $46.46 $5,809 - $8,712 = 4.1% + $151.01 $8,713 - $11,616 = 5.1% + $270.07 $11,617 - $14,520 = 6.1% + $418.18 $14,521 - $21,780.00 = 7.1% +$595.32 $21,781 and up = 7.4% + $1,110.78 | Idaho follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Iowa | $0.00 - $1,554 = 0.36% $1,554 - $3,108 = 0.72% $3,108 - $6,216 = 2.43% $6,216 – $13,896 = 4.50% $13,986 - $23,310 = 6.12% $23,310 - $31,080 = 6.48% $31,080 - $46,620 = 6.80% $46,620 - $69,930 = 7.92% $69,930 and above = 8.98% | $0.00 - $1,554 = 0.36% $1,554 - $3,108 = 0.72% $3,108 - $6,216 = 2.43% $6,216 – $13,896 = 4.50% $13,986 - $23,310 = 6.12% $23,310 - $31,080 = 6.48% $31,080 - $46,620 = 6.80% $46,620 - $69,930 = 7.92% $69,930 and above = 8.98% | Iowa has nine income brackets, with marginal rates between 0.36% and 8.98%. In addition to that state income tax, there are local income surtaxes collected by nearly every school district in Iowa. |
Illinois | 4.95% of federal taxable income | 4.95% of federal taxable income | Illinois has a flat tax rate for your federal taxable income. |
Indiana | 3.23% of federal taxable income | 3.23% of federal taxable income | Indiana has a flat tax rate for your federal taxable income. |
Kansas | $0.00 - $15,000 = 2.7% $15,001 and up = 4.6% + $405.00 | $0.00 - $30,000 = 2.7% $30,001 and up = 4.6% + $810.00 | Kansas follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Kentucky | $0.00 - $3,000 = 2% $3,001 - $4,000 = 3% + $60 $4,001 - $5,000 = 4% + $90 $5,001 - $8,000 = 5% + $130 $8,001 - $75,000 = 5.8% +$280 $75,001 and up = 6% + $4,166 | $0.00 - $3,000 = 2% $3,001 - $4,000 = 3% + $60 $4,001 - $5,000 = 4% + $90 $5,001 - $8,000 = 5% + $130 $8,001 - $75,000 = 5.8% +$280 $75,001 and up = 6% + $4,166 | Kentucky follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Louisiana | $0.00 - $12,500 = 2% $12,501 - $50,000 = 4% $50,001 and up = 6% | $0.00 - $25,000 = 2% $25,001 - $100,000 = 4% $100,001 and up = 6% | Louisiana follows the tax bracket method, but you only pay the tax included in your tax bracket. This means that the marginal rate only applies to earnings within the applicable marginal tax bracket. |
Maine | $0.00 - $21,049 = 5.8% $21,050 - $37,499 = 6.75% + $1,220.84 $37,500 and up = 7.15% + $2,331.22 | $0.00 - $42,099 = 5.8% $42,100 - $74,999 = 6.75% + $2,441.74 $75,000 and up = 7.15% + $4,662.49 | Maine follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Maryland | $0.00 - $1,000 = 2.0% $1,000 - $2,000 = 3.0% + $20 $2,000 - $3,000 = 4.0% + $50 $3,000 - $100,000 = 4.75% + $90 $100,000 - $125,000 = 5.0% + $4,697.50 $125,000 - $150,000 = 5.25% + $5,947.50 $150,000 - $250,000 = 5.50% + $7,260 $250,000 and up = 5.75% + $12,760 | $0.00 - $1,000 = 2.0% $1,000 - $2,000 = 3.0% + $20 $2,000 - $3,000 = 4.0% + $50 $3,000 - $150,000 = 4.75% + $90 $150,000 - $175,000 = 5.0% + $7,072.50 $175,000 - $225,000 = 5.25% + $8,322.50 $225,,000 - $300,000 = 5.50% + $10,947.50 $300,000 and up = 5.75% + $15,072.50 | Maryland has a tiered tax model, so you pay a marginal tax on higher incomes. You can see the model here. |
Massachusetts | 5.1% on federal taxable income | 5.1% on federal taxable income | Massachusetts has a flat tax rate of 5.1% on federal taxable income. |
Michigan | 4.25% of federal AGI with modification | 4.25% of federal AGI with modification | Michigan has a flat tax rate of 4.25% of your federal AGI (adjusted gross income) with modification. |
Minnesota | $0.00 - $25,180 = 5.35% $25,181 - $82,740 = 7.05% + $1,347.13 $82,741 - $155,650 = 7.85% + $5,405.11 $155,651 and up = 9.85% + $11,128.55 | $0.00 - $36,820 = 5.35% $36,821 - $146,270 = 7.05% + $1,969.87 $146,271 - $259,420 = 7.85% + $9,686 $259,421 and up = 9.85% + $18,568.37 | Minnesota follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Mississippi | $0.00 - $5,000 = 3% $5,001 - $10,000 = 4% + $150 $10,001 and up = 5% +$350 | $0.00 - $5,000 = 3% $5,001 - $10,000 = 4% + $150 $10,001 and up = 5% +$350 | Mississippi follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Missouri | $0.00 - $1,000 = 1.5% $1,001 - $2,000 = 2% + $15.00 $2,001- $3,000 = 2.5% + $35 $3,001 - $4,000 = 3% + $60 $4,001 - $5,000 = 3.5% + $90 $5,001 - $6,000 = 4% + $125 $6,001 - $7,000 = 4.5% +$165 $7,001 - $8,000 = 5% + $210 $8,001 - $9,000 = 5.5% + $260 $9,001 an up = 6% + $315 | $0.00 - $1,000 = 1.5% $1,001 - $2,000 = 2% + $15.00 $2,001- $3,000 = 2.5% + $35 $3,001 - $4,000 = 3% + $60 $4,001 - $5,000 = 3.5% + $90 $5,001 - $6,000 = 4% + $125 $6,001 - $7,000 = 4.5% +$165 $7,001 - $8,000 = 5% + $210 $8,001 - $9,000 = 5.5% + $260 $9,001 an up = 6% + $315 | Missouri follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Montana | $0.00 - $2,900 = 1% $2,901 - $5,100 = 2% + $29.00 $5,101- $7,800 = 3% + $73 $7,801 - $10,500 = 3% + $154 $10,501 - $13,500 = 5% + $262 $13,501 - $17,400 = 6% + $412 $17,401 and up = 6.9% + $646.00 | $0.00 - $2,900 = 1% $2,901 - $5,100 = 2% + $29.00 $5,101- $7,800 = 3% + $73 $7,801 - $10,500 = 3% + $154 $10,501 - $13,500 = 5% + $262 $13,501 - $17,400 = 6% + $412 $17,401 and up = 6.9% + $646.00 | Montana follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Nebraska | $0.00 - $3,060 = 2.46% $3,061- $18,370 = 3.51% + $75.28 $18,371 - $29,590 = 5.01% + $612.66 $29,591 and up = 6.84% $1,174.78 | $0.00 - $6,120 = 2.46% $6,121- $36,730 = 3.51% + $150.55 $36,731 - $59,180 = 5.01% + $1,224.96 $59,181 and up = 6.84% $2,349.71 | Nebraska follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Nevada | Nevada is one of the seven states with no personal income tax. | Nevada is one of the seven states with no personal income tax. | Nevada is one of the seven states with no personal income tax. |
New Hampshire | New Hampshire does tax personal income. However, investment income is considered taxable. | New Hampshire does tax personal income. However, investment income is considered taxable. | New Hampshire only collects income tax on qualifying investment, dividend, and interest income. No taxes are imposed on personal income from wages or income reported on a W-4 Form. New Hampshire levies an income tax on the following types of income:
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New Jersey | $0.00 - $20,000 = 1.4% $20,001 - $35,000 = 1.75% + $280 $35,001 - $40,000 = 3.5% + $542.50 $40,001 - $75,000 = 5.53% + $717.50 $75,001 - $500,000 = 6.37% + $2,653.00 $500,001 and up = 8.97% + $29,725 | $0.00 - $20,000 = 1.4% $20,001 - $50,000 = 1.75% + $280 $50,001 - $70,000 = 2.45% + $805 $70,001 - $80,000 = 3.5% + $1,295 $80,001 - $150,000 = 5.53% + $1,645 $150,001 - $500,000 = 6.37% + $5,516 $500,001 and up = 8.97% + $27,811 | New Jersey follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
New Mexico | $0.00 - $5,500 = 1.7% $5,501 - $11,000 = 3.2% + $93.50 $11,001 - $16,000 = 4.7% + $269.50 $16,001 and up = 4.9% + $504.50 | $0.00 - $8,000 = 1.7% $8,001 - $16,000 = 3.2% + $136 $16,001 - $24,000 = 4.7% + $392 $24,001 and up = 4.9% + $768 | New Mexico follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
New York | $0.00 - $8,450 = 4% $8,451 - $11,650 = 4.5% + $338 $11,651- $13,850 = 5.25% + $482 $13,851 -$21,300 = 5.9% + $597.50 $21,301 - $80,150 = 6.45% + $1,037.05 $80,151 - $214,000 = 6.65% + $4,832.88 $214,001 - $1,070,350 = 6.85% + $13,733.90 $1,070,351 and up = 8.82% + $72,393.88 | $0.00 - $17,050 = 4% $17,051 - $23,450 = 4.5% + $682 $23,451 - $27,750 = 5.25% + $970 $27,751 - $42,750 = 5.9% + $1,195.75 $42,751 - $160,500 = 6.45% + $2080.75 $160,501 - $321,050 = 6.65% + $9,675.63 $321,051 - $2,140,900 = 6.85% + $20,352.20 $2,140,901 and up = 8.82% + $145,011.93 | New York follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
North Carolina | 5.75% federal taxable income | 5.75% federal taxable income | North Carolina has a flat income tax rate, which applies to both single and joint filers. |
North Dakota | $0.00 - $37,450 = 1.1% $37,451 - $90,750 = 2.04% + $411.95 $90,751 - $189,300 = 2.27% + $1,499.27 $189,301 - $411,500 = 2.64% + $3,736.26 $411,501 and up = 2.9% + $9,602.44 | $0.00 - $62,600 = 1.1% $62,601 - $151,200 = 2.04% + $688.60 $151,201 - $230,450 = 2.27% + $2,496.04 $230,451 - $411,500 = 2.64% + $4,295.02 $411,501 and up = 2.9% + $9,074.74 | North Dakota follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Ohio | $0.00 - $5,200 = 0.5% $5,201 - $10,400 = 0.99% + $26 $10,401 - $15,650 = 1.98% + $77.48 $15,651 - $20,900 = 2.48% + $181.43 $20,901 - $41,700 = 2.97% + $311.63 $41,701 - $83,350 = 3.46% + $929.39 $83,351 - $104,250 = 3.96% + $2,370.48 $104,251 - $208,500 = 4.6% + $3,198.12 $208,501 and up = 5% + $7,993.62 | $0.00 - $5,200 = 0.5% $5,201 - $10,400 = 0.99% + $26 $10,401 - $15,650 = 1.98% + $77.48 $15,651 - $20,900 = 2.48% + $181.43 $20,901 - $41,700 = 2.97% + $311.63 $41,701 - $83,350 = 3.46% + $929.39 $83,351 - $104,250 = 3.96% + $2,370.48 $104,251 - $208,500 = 4.6% + $3,198.12 $208,501 and up = 5% + $7,993.62 | Ohio follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Oklahoma | $0.00 - $1,000 = 0.5% $1,001 - $2,500 = 1% + $5 $2,501 - $3,750 = 2% + $20 $3,751 - $4,900 = 3% + $45 $4,901 - $7,200 = 4% + $79.50 $7,201 and up = 5% + $171.50 | $0.00 - $2,000 = 0.5% $2,001 - $5,000 = 1% + $10 $5,001 - $7,500 = 2% + $40 $7,501 - $9,800 = 3% + $90 $9,801 - $12,200 = 4% + $159 $12,201 and up = 5% + $255 | Oklahoma follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Oregon | $0.00 - $3,350 = 0.5% $3,351 - $8,400 = 7% + $167.50 $8,401 - $125,000 = 9% + $521 $125,001 and up = 9.9% + $11,015 | $0.00 - $6,500 = 5% $6,501 - $16,300 = 7% + $325 $16,301 - $250,000 = 9% + $1,011 $125,001 and up = 9.9% + $22,044 | Oregon follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Pennsylvania | 3.07% flat rate on taxable income | 3.07% flat rate on taxable income | Pennsylvania has a flat tax rate of 3.07% on all taxable income. |
Rhode Island | $0.00 - $60,850 = 3.75% $60,851 - $138,300 = 4.75% + $2,281.88 $138,301 and up = 5.99% + $5,960.75 | $0.00 - $60,850 = 3.75% $60,851 - $138,300 = 4.75% + $2,281.88 $138,301 and up = 5.99% + $5,960.75 | Rhode Island follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
South Carolina | $0.00 - $2,920 = 0% $2,921 - $5,840 = 3% $5,841 - $8,760 = 4% + $87.60 $8,761 - $11,680 = 5% + $204.40 $11,681 - $14,600 = 6% + $350.40 $14,601 and up = $525.60 | $0.00 - $2,920 = 0% $2,921 - $5,840 = 3% $5,841 - $8,760 = 4% + $87.60 $8,761 - $11,680 = 5% + $204.40 $11,681 - $14,600 = 6% + $350.40 $14,601 and up = $525.60 | South Carolina follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
South Dakota | South Dakota has no personal income tax | South Dakota has no personal income tax | South Dakota has no personal income tax. |
Tennessee | Tennessee does not tax personal earned income. However, Tennessee does tax certain investment income. | Tennessee does not tax personal earned income. However, Tennessee does tax certain investment income. | Tennessee only taxes the following types of investment income:
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Texas | Texas is one of the seven states with no personal income tax. | Texas is one of the seven states with no personal income tax. | Texas does not tax personal income. |
Utah | 5% tax rate | 5% tax rate | Utah has a 5% flat tax rate on all taxable income. |
Vermont | $0.00 - $39,900 = 3.55% $39,901 - $93,400 = 6.8% + $1,416.45 $93,401 - $192,400 = 7.8% + $5,054.45 $192,401 - $415,600 = 8.8% + $12,776.45 $415,601 and up = 8.95% + $32,418.05 | $0.00 - $69,900 = 3.55% $69,901 - $160,450 = 6.8% + $2,481.45 $160,451 - $240,000 = 7.8% + $8,638.85 $240,001 - $421,900 = 8.8% + $14,843.75 $421,901 and up = 8.95% + $30,850.95 | Vermont follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Virginia | $0.00 - $3,000 = 2% $3,001 - $5,000 = 6.8% + 3% + $60 $5,001 - $17,000 = 5% + $120 $17,001 and up = $5.75 + $720 | $0.00 - $3,000 = 2% $3,001 - $5,000 = 6.8% + 3% + $60 $5,001 - $17,000 = 5% + $120 $17,001 and up = $5.75 + $720 | Virginia follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Washington | Washington Is one of the seven states with no personal income tax. | Washington Is one of the seven states with no personal income tax. | Washington does not tax personal income. |
West Virginia | $0.00 - $10,000 = 3% $10,001 - $25,000 = 4% + $300 $25,001 - $40,000 = 4.5% + $900 $40,001 - $60,000 = 6% + $1,575 $60,001 and up = 6.5% + $2,775 | $0.00 - $10,000 = 3% $10,001 - $25,000 = 4% + $300 $25,001 - $40,000 = 4.5% + $900 $40,001 - $60,000 = 6% + $1,575 $60,001 and up = 6.5% + $2,775 | West Virginia follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Wisconsin | $0.00 - $11,150 = 4% $11,151 - $22,230 = 5.84% + $446 $22,231 - $244,750 = 6.27% + $1,093.07 $244,751 and up = 7.65% + $15,045.08 | $0.00 - $14,820 = 4% $14,821 - $29,640 = 5.84% + $592.80 $29,641 - $326,330 = 6.27% + $1,458.29 $326,331 and up = 7.65% + $20,060.75 | Wisconsin follows the tiered tax model. This means that you pay all of the marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. |
Wyoming | Wyoming is one of the seven states with no personal income tax. | Wyoming is one of the seven states with no personal income tax. | Wyoming does not tax personal income. |
Final Thoughts
It's important to note that while income taxes rates vary from state to state, so do the services you receive. While you pay more taxes in California and New York (on average), you also get a host of benefits, including paid family leave, better unemployment insurance, better schools, a top notch higher education system, and more.
While these won't matter to everyone, they do go a long way in continuing to boost the economy. It's a cycle - you spend on infrastructure and education, you improve the economy in your state, you create more jobs, and get more tax revenue.
While taxes suck, it's important to note what you get for what you pay.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared toward anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications, including the New York Times, Wall Street Journal, Washington Post, ABC, NBC, Today, and more. He is also a regular contributor to Forbes.
Editor: Claire Tak