The second-highest bookkeeping tier is taxed at a 7.85% rate, and it’s reserved for single filers who make in excess of $104,090 or couples who earn $184,040. Minnesotans who earn less than that will be taxed at either 5.35% or 6.80%. To help you get a clearer view of where each state stands, we’ve compiled a chart using information provided by the Tax Foundation that breaks down several key tax rates across all 50 states. Hawaii has the lowest property tax rate among states at 0.28%; however, residents can still expect to pay high taxes due to high median home costs in Hawaii. Alabama has the second-lowest property tax rate with 0.41%, coupled with some of the country’s lowest home prices. Not counting the nine states with no income tax, the states with the lowest state income tax rates are North Dakota, Alabama, and Arizona.

Comparing 2023 state taxes

Additionally, taxpayers earning over $1M are subject to an additional surtax of 1%, making the effective maximum tax us state income tax rates rate 13.3% on income over $1 million. Technically, you don’t have just one “tax bracket” – you pay all of the California marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. For comparison purposes, however, your California tax bracket is the tax bracket in which your last earned dollar in any given tax period falls. Data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.

Which date is better to Retire, Missouri or Washington?

Taxpayers 65 and older may exempt up to $9,600 for single filers and up to $12,000 for joint filers if their income falls under certain limits. The exemption is phased out for those making more than $14,500 (single) and $18,000 (joint). Those making more than $33,700 (single) and $42,000 (joint) are ineligible. Wyoming is another state that has low taxes, on top of its beautiful views. There’s no income tax in the Cowboy State and the sales tax is only 5.44%. That’s a huge shift from other no-income-tax states that make up the revenue difference by charging a high sales tax.

State Individual Income Tax Rates and Brackets, 2015

• What’s worse is that California also charges a significant sales tax of 7.25%.
• Residents of Hawaii pay out around 7.2% of their income in sales and excise taxes every year.
• Meanwhile, nine states, including Florida, Texas and Washington, don’t tax income at all.
• Information, including rates and fees, is accurate as of the publishing date and has not been provided or endorsed by the advertiser.
• Following the tables, we document notable individual income tax changes implemented in 2024.
• New York’s 14.74% total effective tax rate is comprised of a 6.15% real estate tax, a 3.8% income tax and a 4.79% sales and excise tax.

Built to serve diverse platforms and industries, the solution automates key compliance functions including nexus monitoring, registration, product-level tax categorization, calculation, filing, and remittance. This site is a free public service not affiliated with the IRS or any governmental organization. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the tax data we present. Minnesota Department of Revenue provides automatic translation for our website (revenue.state.mn.us) into Spanish, Somali, and Hmong, using Google Translate. Please remember, the English language version is considered the most accurate. In the event of a disagreement or discrepancy between the translation and the original English version of this website or any notice or disclaimer, the original version will prevail.

Texas

Alabama has a progressive income tax system with a top marginal rate of 5.0%, applying to incomes over $3,000 for individuals and $6,000 for married couples filing jointly. Because the top rate begins at such a low threshold, most full-time workers pay at the highest rate, making Alabama’s income tax structure effectively flat for most people. Utah maintains a flat personal income tax rate of 4.85%, which applies across all income levels. The state made slight adjustments in 2024 to increase its earned income tax credit (EITC), aiming to help lower-income families under the flat system. Colorado operates with a flat income tax of 4.55%, applying evenly across all income brackets.

Total tax burden

Unlike federal income tax (which applies nationwide), state income tax rates vary significantly from state to state in terms of rates and structures. This complicates tax compliance for businesses that operate in multiple states. Read on to learn more about state income tax, including the different types, rates by state, and key filing deadlines you need to know.

In addition to paying federal taxes, many people around the nation also have to pay state income taxes. While some states, including Florida and New Hampshire, are fortunate enough not to have state income taxes, other states have a high state income tax rate. However, don’t think that the states without income taxes get off that easy – revenue is raised for the Liability Accounts state through other taxation forms, including property taxes and sales taxes. Forty-one taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment.

The 10 States With the Lowest (Non-Zero) Income Taxes in 2025

In 2025, some states might increase or decrease their tax rates, adjust the income brackets, or change tax credits and deductions. You can stay updated with the latest changes by consulting your state’s Department of Revenue—or equivalent tax authority—for the latest information. Instead of levying income taxes, these states collect tax revenue from other sources like property taxes, sales tax, and motor vehicle licensing taxes. On the other end, New Jersey has the highest property tax rate in the United States at 2.47%. One reason for this is that New Jersey’s county and municipal governments cannot impose local income or sales tax, so property taxes pay for almost everything in New Jersey. Illinois has the second-highest property tax rate in the U.S. at 2.27%, followed by New Hampshire at 2.18%.