How State Income Tax Rates Differ by State
State tax systems in the US generally fall into one of three models:
- No Income Tax States (9): Alaska, Florida, Nevada, New Hampshire (no earned wage tax), South Dakota, Tennessee, Texas, Washington, and Wyoming.
- Flat Tax States (13): Arizona (2.5%), Colorado (4.4%), Georgia (5.39%), Idaho (5.695%), Illinois (4.95%), Indiana (3.05%), Iowa (3.8%), Kentucky (4.0%), Michigan (4.25%), Mississippi (4.7%), North Carolina (4.5%), Pennsylvania (3.07%), and Utah (4.65%).
- Graduated Bracket States: California (up to 13.3%), New York (up to 10.9%), New Jersey (up to 10.75%), Hawaii (up to 11.0%), Minnesota (up to 9.85%), and others.
Frequently Asked Questions
Do states with no income tax have higher sales or property taxes?
Primary Legal Sources: Internal Revenue Service (IRS) Publication 15-T (Federal Income Tax Withholding Methods), IRS Form 1040 Statutory Instructions, and Social Security Administration (SSA) OASDI Wage Base limit guidelines.
Calculation Methodology: Applies projected IRS standard deductions ($15,000 for Single, $30,000 for Married Filing Jointly) followed by progressive marginal brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) and statutory FICA rates (6.2% OASDI up to the cap + 1.45% Medicare, plus 0.9% high-income surtax).
Disclaimer: This calculator is provided for financial estimation and informational purposes only. It does not constitute formal legal, accounting, or professional tax advice. For personalized tax filings or complex deduction strategies, consult a licensed Certified Public Accountant (CPA) or tax attorney.