State Income Tax

State Income Tax Rates

Just like you pay federal income tax on the income you earned throughout the year, you may pay a state income tax. That’s unless if you’re living in states that don’t impose income tax on residents.

The income tax rate is different for each state and oftentimes just like how tax brackets determine what portion of your income will be taxed, the same goes for state income taxes. However, some states have a flat tax rate that all residents will be taxed regardless of their income.

While it may sound unfair for some to not pay state income taxes, everything is at a balanced level. Considering states that don’t impose an income tax all have high sales taxes, additional taxes may also make up for the state income tax. This includes sin taxes, excise taxes, etc.

States With Flat Tax Rates

A flat tax rate means everybody regardless of income will pay the same portion of their income towards state income tax.

E.g.

Someone who lives in Colorado and earns $30,000 a year will pay the same rate of taxes as someone who earns $3 million.

Flat Income Tax Rate States

StateFlat Tax RateTax Burden
Colorado4.63%8.15% of personal income
Illinois4.95%9.67% of personal income
Indiana3.23%8.22% of personal income
Kentucky5%8.77% of personal income
Massachusetts5.05%8.90% of personal income
Michigan4.25%8.40% of personal income
North Carolina5.25%8.38% of personal income
Pennsylvania3.07%8.58% of personal income
Utah4.95%8.26% of personal income

Other States

List of States with Different Income Tax Rates

The state income tax rate can be as low as 1% and can go up to 11%. These figures are for 2020 and any tax legislation for a certain state can make the rates higher or lower. It is always best to check this with your state’s revenue department. The table below will guide the tax rates of each state.

The income tax rates are going to be different just like the federal income tax. So you’ll need to look for your state tax brackets which can be found below for each state that is covered on the table.

List of States with Different Income Tax Rates

StateTax RateTax Burden
Alabama2% to 5%7.28% of personal income
Arizona2.59% to 4.54%8.26% of personal income
Arkansas0.9% to 6.9%9.11% of personal income
California1% to 13.3%9.47% of personal income
Connecticut3% to 6.99%9.70% of personal income
Delaware2.2% to 6.6%5.55% of personal income
District of Columbia 4% to 8.95%8.85% of personal income
Georgia1% to 5.75%8.10% of personal income
Hawaii1.4% to 11%11.71% of personal income
Idaho 1.125% to 9.925%7.75% of personal income
Iowa0.33% to 8.53%9.49% of personal income
Kansas3.1% to 5.7%8.77% of personal income
Louisiana2% to 6%8.51% of personal income
Maine5.8% to 7.15%10.84% of personal income
Maryland 2% to 5.75%9.26% of personal income
Minnesota5.35% to 9.85%10.25% of personal income
Mississippi3% to 5%9.02% of personal income
Missouri1.5% to 5.9%7.86% of personal income
Montana1% to 6.9%7.27% of personal income
Nebraska2.46% to 6.84%9.21% of personal income
New Jersey1.4% to 10.75%9.86% of personal income
New Mexico1.7% to 4.9%8.66% of personal income
New York4% to 8.82%12.97% of personal income
North Dakota1.1% to 2.9%7.83% of personal income
Ohio 1.98% to 4.997%9.31% of personal income
Oklahoma 0.5% to 5%7.12% of personal income
Oregon 5% to 9.9%8.25% of personal income
Rhode Island3.75% to 5.99%10.20% of personal income
South Carolina1.1% to 7%7.55% of personal income
Vermont3.35% to 8.9510.77% of personal income
Virginia 2% to 5.75%7.80% of personal income
West Virginia3% to 6.5%9.18% of personal income
Wisconsin4% to 7.65%9.15% of personal income

State Income Tax Bracket Links

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Connecticut
  • Delaware
  • District of Columbia
  • Georgia
  • Hawaii
  • Idaho
  • Iowa
  • Kansas
  • Louisiana
  • Maine
  • Maryland
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • New Jersey
  • Nebraska
  • New Mexico
  • New York
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Rhode Island
  • South Carolina
  • Vermont
  • Virginia
  • West Virginia
  • Wisconsin

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