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?
Often, yes. States without personal income taxes frequently offset their revenue requirements through higher property taxes (such as Texas) or higher combined sales taxes (such as Tennessee and Washington).