State Income Taxes

Top State Income Taxes FAQs

Most popular FAQs for State Income Taxes

What states have a state income tax?

The following eight states have a flat rate individual income tax as of 2016:

Colorado – 4.63% (2019)
Illinois – 4.95% (July 2017)
Indiana – 3.23% Counties may impose an additional income tax). ...
Massachusetts – 5.1% (2016) (most types of income)
Michigan – 4.25% (2016) (22 cities in Michigan may levy an income tax, with non-residents paying half the rate of residents)
North Carolina – 5.499% (2017); 5.75% (2016)

More items...

What states have the highest income tax?

Alaska (5.06%)
Tennessee (5.75%)
Delaware (6.22%)
Wyoming (6.32%)
New Hampshire (6.41%)
Florida (6.64%)
South Dakota (7.12%)
Montana (7.39%)
Alabama (7.41%)
Oklahoma (7.47%)

What state has the worst taxes?

in 2019

California: 13.3%. It is obvious to see California topping the list as a state with the highest taxation rates. ...
Hawaii: 11%. Hawaii could be every honeymoon destination for the romantic couples, but settling there should not cross your mind.
Oregon: 9.9%. ...
Minnesota: 9.85%. ...
Iowa: 8.98%. ...
New Jersey: 8.97%. ...
Washington DC: 8.95%. ...
New York: 8.82%. ...
Maine: 7.95%. ...

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What would state income tax mean for You?

An income tax is a type of tax that is imposed on an individual’s or business’s earned and unearned income. For example, the U.S. imposes a federal income tax on its citizens—both those who live in the U.S. and those who live abroad—as well as on its resident aliens. This income tax generates most of the U.S. government’s revenue. 1

State Income Tax Rates

Category: State Tax

Do you know what you pay in state income tax? Rates range from 0% to more than 13% across the U.S. Here's what you need to know about where you live and what you'll pay.

Tonya Moreno is a licensed CPA with about 15 years of diversified accounting, tax, and management experience. She is an expert in the field who has worked as a tax accountant for many large, multi-state corporations. She not only has experience in preparing state and federal tax returns, but has also dealt with complex tax issues with large amounts of money at stake. Today, Tonya serves as the chief financial officer of Maslonka Powerline Services in Spokane, Washington.

Lea Uradu, J.D. is graduate of the University of Maryland School of Law, a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, Tax Writer, and Founder of L.A.W. Tax Resolution Services. Lea has worked with hundreds of federal individual and expat tax clients.

Ariana Chávez has over a decade of professional experience in research, editing, and writing. She has spent time working in academia and digital publishing, specifically with content related to U.S. socioeconomic history and personal finance among other topics. She leverages this background as a fact checker for The Balance to ensure that facts cited in articles are accurate and appropriately sourced.

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

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 of course, Washington, D.C. is not a state, but it has its own income tax rate.

State Income Tax Definition

Category: State Income Tax

State income tax is a tax levied by a state on the income of its residents, as well as on any nonresidents who earn state-sourced income.

Julia Kagan has written about personal finance for more than 25 years and for Investopedia since 2014. The former editor of Consumer Reports, she is an expert in credit and debt, retirement planning, home ownership, employment issues, and insurance. She is a graduate of Bryn Mawr College (A.B., history) and has an MFA in creative nonfiction from Bennington College.

State income tax is a direct tax levied by a state on income earned in or from the state. In your state of residence, it may mean all your income earned anywhere. Like federal tax, state income tax is self-assessed, which means taxpayers file required state tax returns.

Tax laws, rates, procedures, and forms vary widely from state to state. Filing deadlines also vary, but for individuals, state tax day usually falls on the same day as federal tax day, which is typically April 15.

Taxpayers must file tax returns in each state and each year that they earn an income greater than the state’s filing threshold. Many states conform to federal rules for income and deduction recognition. Some may even require a copy of the taxpayer’s federal income tax return to be filed with the state income tax return.

State and Local Taxes | USAGov

Category: The Amount Of State And Local Income Tax You Pay Will Depend On How Much Income You Earn And The Tax Rate Of The State Or Locality Where You Live

Get tax information in your state.

Taxpayers must pay personal income tax to the federal government, 43 states, and many local municipalities. Learn how to pay your state taxes and find out about resources in your area that can help you through the process.

The amount of state and local income tax you pay will depend on how much income you earn and the tax rate of the state or locality where you live. To find out how much you owe and how to pay it, find personal income tax information by state.

Your state taxpayer advocate can offer protection during the a-sessment and collection of taxes. This protection extends to your rights, privacy, and property. Contact your state’s department of revenue to find out your rights and whether you have a taxpayer advocate or ombudsman.

Massachusetts taxpayers will get a 13% refund on state income taxes

2:44 - 3 years ago

WBZ-TV's Tiffany Chan reports.

Income Tax Rates By State 2022 - Tax-Rates.org

Category: State Income Tax

Compare relative tax rates across the U.S. based on the lowest, average, or highest tax brackets. Hover over any state for tax rates, and click for more detailed information. Scroll down for a list of income tax rates by state.

State Name Lowest Tax Bracket Highest Tax Bracket Alabama2%5% Alaska0%0% Arizona2.59%4.5% Arkansas2%6.6% California1%13.3% Colorado4.63%4.63% Connecticut3%6.99% Delaware2.2%6.6% District of Columbia4%8.95% Florida0%0% Georgia1%5.75% Hawaii1.4%11% Idaho1.12%6.92% Illinois4.95%4.95% Indiana3.23%3.23% Iowa0.33%8.53% Kansas3.1%5.7% Kentucky5%5% Louisiana2%6% Maine5.8%7.15% Maryland2%5.75% Massachusetts5%5% Michigan4.25%4.25% Minnesota5.35%9.85% Mississippi3%5% Missouri1.5%5.4% Montana1%6.9% Nebraska2.46%6.84% Nevada0%0% New Hampshire5%5% New Jersey1.4%10.75% New Mexico1.7%4.9% New York4%8.82% North Carolina5.25%5.25% North Dakota1.1%2.9% Ohio2.85%4.8% Oklahoma0.5%5% Oregon5%9.9% Pennsylvania3.07%3.07% Rhode Island3.75%5.99% South Carolina0%7% South Dakota0%0% Tennessee1%1% Texas0%0% Utah4.95%4.95% Vermont3.35%8.75% Virginia2%5.75% Washington0%0% West Virginia3%6.5% Wisconsin4%7.65% Wyoming0%0%

Most state governments in the United States collect a state income tax on all income earned within the state, which is different from and must be filed separately from the federal income tax. While most states use a marginal bracketed income tax system similar to the federal income tax, every state has a completely unique income tax code.

Choose any state from the list above for detailed state income tax information including 2022 income tax tables, state tax deductions, and state-specific income tax calculators. Many state pages also provide direct links to selected income tax return forms and other resources.

If you want to compare all of the state tax rates on one page, visit the list of state income taxes. For info on 2011 federal income tax and federal tax refunds, visit the federal income tax and federal tax refund pages.

State Individual Income Tax Rates and Brackets | Tax Foundation

Category: Income Taxes

Improving Lives Through Smart Tax Policy

The Tax Foundation is the nation’s leading independent tax policy nonprofit. Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and global levels. For over 80 years, our goal has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity.

Individual income taxes are a major source of state government revenue, accounting for 36 percent of state tax collections in fiscal year 2020, the latest year for which data are available.

Forty-three states levy individual income taxes. Forty-one tax wage and salary income, while New Hampshire exclusively taxes dividend and interest income and Washington taxes the capitals gains income of high earners. Seven states levy no individual income tax at all.

Of those states taxing wages, nine have single-rate tax structures, with one rate applying to all taxable income. Conversely, 32 states and the District of Columbia levy graduated-rate income taxes, with the number of brackets varying widely by state. Hawaii has 12 brackets, the most in the country.

States’ approaches to income taxes vary in other details as well. Some states double their single-bracket widths for married filers to avoid a “marriage penalty.” Some states index tax brackets, exemptions, and deductions for inflation; many others do not. Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all.

State Income Tax Rates 2022 - Tax-Rates.org

Category: State Income Taxes Income Tax

All state income tax rates by state, updated for 2022

This page lists state individual income tax rates for all fifty states, including brackets for those filing both as an individual and jointly with a spouse. This data can be downloaded as an Excel file, courtesy of The Tax Foundation . For a visual comparison of state income taxes across the United States, see our state income tax map.

Single Bracket Couple Bracket Marginal Rate $0+ N/A 1.40% $2,400+ $4,800+ 3.20% $4,800+ $9,600+ 5.50% $9,600+ $19,200+ 6.40% $14,400+ $28,800+ 6.80% $19,200+ $38,400+ 7.20% $24,000+ $48,000+ 7.60% $36,000+ $72,000+ 7.90% $48,000+ $96,000+ 8.25% $150,000+ $300,000+ 9.00% $175,000+ $350,000+ 10.00% $300,000+ $400,000+ 11.00%

Single Bracket Couple Bracket Marginal Rate $0+ N/A 0.36% $1,439+ N/A 0.72% $2,878+ N/A 2.43% $5,756+ N/A 4.50% $12,951+ N/A 6.12% $21,585+ N/A 6.48% $28,780+ N/A 6.80% $43,170+ N/A 7.92% $64,755+ N/A 8.98%

Single Bracket Couple Bracket Marginal Rate $0+ N/A 1.50% $1,000+ N/A 2.00% $2,000+ N/A 2.50% $3,000+ N/A 3.00% $4,000+ N/A 3.50% $5,000+ N/A 4.00% $6,000+ N/A 4.50% $7,000+ N/A 5.00% $8,000+ N/A 5.50% $9,000+ N/A 6.00%

Single Bracket Couple Bracket Marginal Rate $0+ N/A 0.59% $0+ N/A 1.17% $0+ N/A 2.35% $0+ N/A 2.94% $0+ N/A 3.52% $0+ N/A 4.11% $0+ N/A 4.70% $0+ N/A 5.45% $0+ N/A 5.92%

Welcome to the official website of the NYS Department of Taxation and Finance. Visit us to learn about your tax responsibilities, check your refund status, and use our online services—anywhere, any time!

If you're a homeowner who qualifies, we'll automatically send you a check for the amount of the credit. Your amount will depend on where your home is located, how much your income is, and whether you receive Enhanced or Basic STAR.

If you've recently bought a home, or never applied for the STAR benefit on your current home, you should investigate the STAR options available to you. You may save hundreds each year!

Log in to your Business Online Services account to Web File your sales tax returns. With Web File, you can schedule payments in advance, save your bank account information for future use, and update your business information.

Owners of property subject to a tax lien sale or tax foreclosure who own ten or fewer residential dwelling units (including their primary residence) may declare a COVID-19-related hardship if they meet certain conditions. See Tax Department response to novel coronavirus (COVID-19) for more information.

Need to make a payment toward a bill, notice, or IPA? Use Quick Pay to pay directly from your bank account. There's no fee and you don't need an Online Services account.

When Did Your State Adopt Its Income Tax? | Tax Foundation

Category: Income Tax

Improving Lives Through Smart Tax Policy

This week’s map is the adoption years of state individual income taxes. This information isn’t widely available on the internet, but we happened to have it in our archives in the 1994 edition of Significant Features of Fiscal Federalism, produced by the Advisory Commission on Intergovernmental Relations.

We’ve organized the states by decade here, and you can see that the most active one was the 1930s, where western states enacted the tax as an emergency measure as a reaction to property tax collection slumps during the Great Depression. Ten states adopted individual income taxes before 1920, with Hawaii, Wisconsin, and Mississippi even doing so before the adoption of the federal income tax in 1913. While Hawaii is technically the first state to adopt an income tax (in 1901), it’s important to mention that Hawaii was not granted statehood until 1959.

Every state has an income tax except for Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Alaska is notable in that it is the only state to repeal an existing income tax (in 1979), while all the other states on that list have always gone without one. New Hampshire and Tennessee also deserve mention, as their income taxes do not and have not ever applied to wage income, instead only taxing interest and dividend income. Connecticut originally imposed it’s income tax on capital gains, interest, and dividends, and expanded its tax to wages in 1991.

Free Income Tax Calculator - Estimate Your Taxes - SmartAsset

Category: Income Tax

Calculate your federal, state and local taxes for the 2021-2022 filing year with our free income tax calculator. Enter your income and location to estimate your tax burden.

Income in America is taxed by the federal government, most state governments and many local governments. The federal income tax system is progressive, so the rate of taxation increases as income increases. Marginal tax rates range from 10% to 37%.

Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2020 - 2021 filing season based on the Trump Tax Plan.

Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.

The federal personal income tax that is administered by the Internal Revenue Service (IRS) is the largest source of revenue for the U.S. federal government. Nearly all working Americans are required to file a tax return with the IRS each year. In addition to this, most people pay taxes throughout the year in the form of payroll taxes that are withheld from their paychecks.

Income taxes in the U.S. are calculated based on tax rates that range from 10% to 37%. Taxpayers can lower their tax burden and the amount of taxes they owe by claiming deductions and credits.

What You Need to Know About the 2022 One-Time Tax Rebate. Starting in the fall, eligible taxpayers will receive a one-time rebate of up to $250 for individuals and up to $500 for joint …

State income tax - Wikipedia

Category: Tax On

In addition to federal income tax collected by the United States, most individual U.S. states collect a state income tax. Some local governments also impose an income tax, often based on state income tax calculations. Forty-two states and many localities in the United States impose an income tax on individuals. Eight states impose no state income tax, and a ninth, New Hampshire, imposes an individual income tax on dividends and interest income but not other forms of income. Forty-seven states and many localities impose a tax on the income of corporations.[1]

State income tax is imposed at a fixed or graduated rate on taxable income of individuals, corporations, and certain estates and trusts. These tax rates vary by state and by entity type. Taxable income conforms closely to federal taxable income in most states with limited modifications.[2] States are prohibited from taxing income from federal bonds or other federal obligations. Most states do not tax Social Security benefits or interest income from obligations of that state. In computing the deduction for depreciation, several states require different useful lives and methods be used by businesses. Many states allow a standard deduction or some form of itemized deductions. States allow a variety of tax credits in computing tax.

State tax rules vary widely. The tax rate may be fixed for all income levels and taxpayers of a certain type, or it may be graduated. Tax rates may differ for individuals and corporations.

Gross income generally includes all income earned or received from whatever source with some exceptions. States are prohibited from taxing income from federal bonds or other federal obligations.[3] Most states also exempt income from bonds issued by that state or localities within the state as well as some portion or all of Social Security benefits. Many states provide tax exemption for certain other types of income, which varies widely by state. States uniformly allow reduction of gross income for cost of goods sold, though the computation of this amount may be subject to some modifications.

Most states provide for modification of both business and non-business deductions. All states taxing business income allow deduction for most business expenses. Many require that depreciation deductions be computed in manners different from at least some of those permitted for federal income tax purposes. For example, many states do not allow the additional first year bonus depreciation deduction.

Income Tax - California

Category: Income Tax State Income Tax

More Income Tax Information State Income Tax. Corporation tax law changes; Find your answer online; Filing Status; City/County Business Tax (CCBT) Program - Identifies individuals and …

State Income Tax Rates: What They Are, How They Work - NerdWallet

State income tax rates can raise your tax bill. Find your state's income tax rate, see how it compares to others and see a list of states with no income tax.

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State income tax rates receive relatively little attention compared with federal income taxes, but they can still put a large dent in your wallet. How large depends on the amount you earn, as well as where you live and work. Here's how it works, and a list of states with no income tax.

A state income tax is a tax on income earned in that state. It is similar to a federal income tax, but state income tax generally funds state budgets rather than the federal government.

Do States Need an Income Tax?

Category: Income Tax

States with no income tax tend to run much leaner and efficiently.

Pretty well, apparently. The nine – Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming – “run leaner and more efficient governments than most other states,” according to Edwards.

The other seven states, however, run their state governments with a notably lower tax burden on their citizens. For instance, “Total taxes in the seven states average 8.1 percent of income. The average in the 40 other states is 9.6 percent,” wrote Edwards.

“Repealing state individual income taxes is a good goal,” Edwards continues. “If policymakers deliver needed services in a lean and efficient manner, they can free their residents and businesses of complex and damaging state income taxes.” For instance, Edwards notes high tax “New York’s bureaucracy is 34 percent larger than Florida’s, even though Florida has more residents.”

Our state is already scheduled to phase out its corporate income tax by 2030. Do any of the nine states with no personal income tax also have no corporate income tax?

By investing in the John Locke Foundation, you’re transforming the beliefs you hold dear into a tangible, results-oriented set of actions. Your tax-deductible investment will help us work to make North Carolina more free.

Pennsylvania personal income tax is levied at the rate of 3.07 percent against taxable income of resident and nonresident individuals, estates, trusts, partnerships, S corporations, business trusts and limited liability companies not federally taxed as corporations.

Pennsylvania taxes eight classes of income: (1) compensation; (2) interest; (3) dividends; (4) net profits from the operation of a business, profession or farm; (5) net gains or income from the dispositions of property; (6) net gains or income from rents, royalties, patents and copyrights; (7) income derived through estates or trusts; and (8) gambling and lottery winnings, including cash prizes from the Pennsylvania Lottery. Noncash prizes from the PA Lottery are not taxed. A loss in one class of income may not offset against income in another class, nor may gains or losses be carried backward or forward from year to year.

State Income Tax Calculators or Estimate - efile.com

Category: State Tax Income Taxes

Find a List of State Tax Calculators and Estimates for Tax Year 2021 and 2022. Estimate Your State and Federal Taxes. 15 Tax Calculators ... Alaska - No Income Taxes. Arizona State …

A List of States With Reciprocal Tax Agreements - The Balance

Category: State Income Taxes

Mar 23, 2022 · Iowa has reciprocity with only one state—Illinois. Your employer doesn't have to withhold Iowa state income taxes from your wages if you work in Iowa and you're a resident …

Missouri income tax cut heads to governor's desk - ABC17NEWS

Category:

Sep 29, 2022 · The income-tax cut is expected to cost the state about $1 billion, according to lawmakers' estimates. ... The Missouri Budget Project estimated a family with a $52,000 yearly …

Individual Income Tax Rates to Rise in Five Indiana Counties …

Category: Income Tax

Sep 28, 2022 · Local income tax rates are determined by county officials and provided to DOR for review regarding compliance with Indiana law. Below are the five counties impacted along …