There are many types of taxes available in the USA and among them, state income tax and federal income taxes are two major types. Though people show less importance to state income tax compared to federal income taxes but state income tax can still create a big problem for your financial record.
A state income tax is a type of tax that depends on the income earned in a particular state. This type of tax is quite similar to federal income tax. The main difference is; state income tax usually funds the state budgets rather than the federal government.
How State Income Tax Rates Work
Usually, every state has three approaches for state income tax rates. They are:
1. No income tax at all
2. A flat tax that includes all income, or dividends, and interest at the same rate
3. Progressive tax where people with higher taxable incomes pay higher state income tax rates
If you live and work in the same state then you only have to file one state return each year. But if you live in one state and work in another state then you have to file more than one income tax return based on the states where you live and work.
List Of States With No Income Tax
Among the 50 states of the USA, eight states don’t have an income tax. They are:
1. Alaska
2. Florida
3. Nevada
4. South Dakota
5. Tennessee
6. Texas
7. Washington
8. Wyoming
List Of States With Flat Income Tax Rates
There are 10 states in the USA that have flat income tax rates. They are:
1. North Carolina: 5.25%
2. Massachusetts: 5.00%
3. Kentucky: 5.00%
4. New Hampshire: 5.00% (only on dividend and interest income)
5. Illinois: 4.95%
6. Utah: 4.95%
7. Colorado: 4.55%
8. Michigan: 4.25%
9. Indiana: 3.23%
10. Pennsylvania: 3.07%
A State-By-State Comparison Of Income Tax Brackets
Alabama Tax Brackets
1. For earnings between $0.00 and $500.00, you’ll pay 2%
2. For earnings between $500.00 and $3,000.00, you’ll pay 4% plus $10.00
3. For earnings over $3,000.00, you’ll pay 5% plus $110.00
Alaska Tax Brackets
1. Alaska has no income tax
Arizona Tax Brackets
1. For earnings between $0.00 and $26,500.00, you’ll pay 2.59%
2. For earnings between $26,500.00 and $53,000.00, you’ll pay 3.34% plus $686.35
3. For earnings between $53,000.00 and $159,000.00, you’ll pay 4.17% plus $1,571.45
4 For earnings over $159,000.00, you’ll pay 4.5% plus $5,991.65
Arkansas Tax Brackets
1. For earnings between $0.00 and $4,000.00, you’ll pay 2%
2. For earnings between $4,000.00 and $8,000.00, you’ll pay 4% plus $80.00
3. For earnings between $8,000.00 and $79,300.00, you’ll pay 5.9% plus $240.00
4. For earnings over $79,300.00, you’ll pay 6.6% plus $4,446.70
California Tax Brackets
1. For earnings between $0.00 and $8,809.00, you’ll pay 1%
2. For earnings between $8,809.00 and $20,883.00, you’ll pay 2% plus $88.09
3. For earnings between $20,883.00 and $32,960.00, you’ll pay 4% plus $329.57
4. For earnings between $32,960.00 and $45,753.00, you’ll pay 6% plus $812.65
5. For earnings between $45,753.00 and $57,824.00, you’ll pay 8% plus $1,580.23
6. For earnings between $57,824.00 and $295,373.00, you’ll pay 9.3% plus $2,545.91
7. For earnings between $295,373.00 and $354,445.00, you’ll pay 10.3% plus $24,637.97
8. For earnings between $354,445.00 and $590,742.00, you’ll pay 11.3% plus $30,722.38
9. For earnings between $590,742.00 and $1,000,000.00, you’ll pay 12.3% plus $57,423.94
10. For earnings over $1,000,000.00, you’ll pay 13.3% plus $107,762.68
Colorado Tax Brackets
1. For earnings over $0.00, you’ll pay 4.63% plus $0.00
Connecticut Tax Brackets
1. For earnings between $0.00 and $10,000.00, you’ll pay 3%
2. For earnings between $10,000.00 and $50,000.00, you’ll pay 5% plus $300.00
3. For earnings between $50,000.00 and $100,000.00, you’ll pay 5.5% plus $2,300.00
4. For earnings between $100,000.00 and $200,000.00, you’ll pay 6% plus $5,050.00
5. For earnings between $200,000.00 and $250,000.00, you’ll pay 6.5% plus $11,050.00
6. For earnings between $250,000.00 and $500,000.00, you’ll pay 6.9% plus $14,300.00
7. For earnings over $500,000.00, you’ll pay 6.99% plus $31,550.00
Delaware Tax Brackets
1. For earnings between $2,000.00 and $5,000.00, you’ll pay 2.2%
2. For earnings between $5,000.00 and $10,000.00, you’ll pay 3.9% plus $66.00
3. For earnings between $10,000.00 and $20,000.00, you’ll pay 4.8% plus $261.00
4. For earnings between $20,000.00 and $25,000.00, you’ll pay 5.2% plus $741.00
5. For earnings between $25,000.00 and $60,000.00, you’ll pay 5.55% plus $1,001.00
6. For earnings over $60,000.00, you’ll pay 6.6% plus $2,943.50
District Of Columbia Tax Brackets
1. For earnings between $0.00 and $10,000.00, you’ll pay 4%
2. For earnings between $10,000.00 and $40,000.00, you’ll pay 6% plus $400.00
3. For earnings between $40,000.00 and $60,000.00, you’ll pay 6.5% plus $2,200.00
4. For earnings between $60,000.00 and $350,000.00, you’ll pay 8.5% plus $3,500.00
5. For earnings between $350,000.00 and $1,000,000.00, you’ll pay 8.75% plus $28,150.00
6. For earnings over $1,000,000.00, you’ll pay 8.95% plus $85,025.00
Florida Tax Brackets
1. Florida has no income tax
Georgia Tax Brackets
1. For earnings between $0.00 and $750.00, you’ll pay 1%
2. For earnings between $750.00 and $2,250.00, you’ll pay 2% plus $7.50
3. For earnings between $2,250.00 and $3,750.00, you’ll pay 3% plus $37.50
4. For earnings between $3,750.00 and $5,250.00, you’ll pay 4% plus $82.50
5. For earnings between $5,250.00 and $7,000.00, you’ll pay 5% plus $142.50
6. For earnings over $7,000.00, you’ll pay 5.75% plus $230.00
Hawaii Tax Brackets
1. For earnings between $0.00 and $2,400.00, you’ll pay 1.4%
2. For earnings between $2,400.00 and $4,800.00, you’ll pay 3.2% plus $33.60
3. For earnings between $4,800.00 and $9,600.00, you’ll pay 5.5% plus $110.40
4. For earnings between $9,600.00 and $14,400.00, you’ll pay 6.4% plus $374.40
5. For earnings between $14,400.00 and $19,200.00, you’ll pay 6.8% plus $681.60
6. For earnings between $19,200.00 and $24,000.00, you’ll pay 7.2% plus $1,008.00
7. For earnings between $24,000.00 and $36,000.00, you’ll pay 7.6% plus $1,353.60
8. For earnings between $36,000.00 and $48,000.00, you’ll pay 7.9% plus $2,265.60
9. For earnings between $48,000.00 and $150,000.00, you’ll pay 8.25% plus $3,213.60
10. For earnings between $150,000.00 and $175,000.00, you’ll pay 9% plus $11,628.60
11. For earnings between $175,000.00 and $200,000.00, you’ll pay 10% plus $13,878.60
12. For earnings over $200,000.00, you’ll pay 11% plus $16,378.60
Idaho Tax Brackets
1. For earnings between $0.00 and $1,541.00, you’ll pay 1.13%
2. For earnings between $1,541.00 and $3,081.00, you’ll pay 3.13% plus $17.34
3. For earnings between $3,081.00 and $4,622.00, you’ll pay 3.63% plus $65.46
4. For earnings between $4,622.00 and $6,162.00, you’ll pay 4.63% plus $121.32
5. For earnings between $6,162.00 and $7,703.00, you’ll pay 5.63% plus $192.55
6. For earnings between $7,703.00 and $11,554.00, you’ll pay 6.63% plus $279.23
7. For earnings over $11,554.00, you’ll pay 6.93% plus $534.36
Illinois Tax Brackets
1. For earnings over $0.00, you’ll pay 4.95% plus $0.00
Indiana Tax Brackets
1. For earnings over $0.00, you’ll pay 3.23% plus $0.00
Iowa Tax Brackets
1. For earnings between $0.00 and $1,638.00, you’ll pay 0.33%
2. For earnings between $1,638.00 and $3,276.00, you’ll pay 0.67% plus $5.41
3. For earnings between $3,276.00 and $6,552.00, you’ll pay 2.25% plus $16.38
4. For earnings between $6,552.00 and $14,742.00, you’ll pay 4.14% plus $90.09
5. For earnings between $14,742.00 and $24,570.00, you’ll pay 5.63% plus $429.16
6. For earnings between $24,570.00 and $32,760.00, you’ll pay 5.96% plus $982.47
7. For earnings between $32,760.00 and $49,140.00, you’ll pay 6.25% plus $1,470.60
8. For earnings between $49,140.00 and $73,710.00, you’ll pay 7.44% plus $2,494.35
9. For earnings over $73,710.00, you’ll pay 8.53% plus $4,322.35
Kansas Tax Brackets
1. For earnings between $0.00 and $15,000.00, you’ll pay 3.1%
2. For earnings between $15,000.00 and $30,000.00, you’ll pay 5.25% plus $465.00
3. For earnings over $30,000.00, you’ll pay 5.7% plus $1,252.50
Kentucky Tax Brackets
1. For earnings over $0.00, you’ll pay 5% plus $0.00
Louisiana Tax Brackets
1. For earnings between $0.00 and $12,500.00, you’ll pay 2%
2. For earnings between $12,500.00 and $50,000.00, you’ll pay 4% plus $250.00
3. For earnings over $50,000.00, you’ll pay 6% plus $1,750.00
Maine Tax Brackets
1. For earnings between $0.00 and $22,200.00, you’ll pay 5.8%
2. For earnings between $22,200.00 and $52,600.00, you’ll pay 6.75% plus $1,287.60
3. For earnings over $52,600.00, you’ll pay 7.15% plus $3,339.60
Maryland Tax Brackets
1. For earnings between $0.00 and $1,000.00, you’ll pay 2%
2. For earnings between $1,000.00 and $2,000.00, you’ll pay 3% plus $20.00
3. For earnings between $2,000.00 and $3,000.00, you’ll pay 4% plus $50.00
4. For earnings between $3,000.00 and $100,000.00, you’ll pay 4.75% plus $90.00
5. For earnings between $100,000.00 and $125,000.00, you’ll pay 5% plus $4,697.50
6. For earnings between $125,000.00 and $150,000.00, you’ll pay 5.25% plus $5,947.50
7. For earnings between $150,000.00 and $250,000.00, you’ll pay 5.5% plus $7,260.00
8. For earnings over $250,000.00, you’ll pay 5.75% plus $12,760.00
Massachusetts Tax Brackets
1. For earnings over $0.00, you’ll pay 5% plus $0.00
Michigan Tax Brackets
1. For earnings over $0.00, you’ll pay 4.25% plus $0.00
Minnesota Tax Brackets
1. For earnings between $0.00 and $26,960.00, you’ll pay 5.35%
2. For earnings between $26,960.00 and $88,550.00, you’ll pay 6.8% plus $1,442.36
3. For earnings between $88,550.00 and $164,400.00, you’ll pay 7.85% plus $5,630.48
4. For earnings over $164,400.00, you’ll pay 9.85% plus $11,584.71
Mississippi Tax Brackets
1. For earnings between $1,000.00 and $5,000.00, you’ll pay 3%
2. For earnings between $5,000.00 and $10,000.00, you’ll pay 4% plus $120.00
3. For earnings over $10,000.00, you’ll pay 5% plus $320.00
Missouri Tax Brackets
1. For earnings between $105.00 and $1,053.00, you’ll pay 1.5%
2. For earnings between $1,053.00 and $2,106.00, you’ll pay 2% plus $14.22
3. For earnings between $2,106.00 and $3,159.00, you’ll pay 2.5% plus $35.28
4. For earnings between $3,159.00 and $4,212.00, you’ll pay 3% plus $61.61
5. For earnings between $4,212.00 and $5,265.00, you’ll pay 3.5% plus $93.20
6. For earnings between $5,265.00 and $6,318.00, you’ll pay 4% plus $130.05
7. For earnings between $6,318.00 and $7,371.00, you’ll pay 4.5% plus $172.17
8. For earnings between $7,371.00 and $8,424.00, you’ll pay 5% plus $219.56
9. For earnings over $8,424.00, you’ll pay 5.4% plus $272.21
Montana Tax Brackets
1. For earnings between $0.00 and $3,100.00, you’ll pay 1%
2. For earnings between $3,100.00 and $5,400.00, you’ll pay 2% plus $31.00
3. For earnings between $5,400.00 and $8,200.00, you’ll pay 3% plus $77.00
4. For earnings between $8,200.00 and $11,100.00, you’ll pay 4% plus $161.00
5. For earnings between $11,100.00 and $14,300.00, you’ll pay 5% plus $277.00
6. For earnings between $14,300.00 and $18,400.00, you’ll pay 6% plus $437.00
7. For earnings over $18,400.00, you’ll pay 6.9% plus $683.00
Nebraska Tax Brackets
1. For earnings between $0.00 and $3,230.00, you’ll pay 2.46%
2. For earnings between $3,230.00 and $19,330.00, you’ll pay 3.51% plus $79.46
3. For earnings between $19,330.00 and $31,160.00, you’ll pay 5.01% plus $644.57
4. For earnings over $31,160.00, you’ll pay 6.84% plus $1,237.25
Nevada Tax Brackets
1. Nevada has no Income tax
New Hampshire Tax Brackets
1. 5% tax only on dividends and interest
New Jersey Tax Brackets
1. For earnings between $0.00 and $20,000.00, you’ll pay 1.4%
2. For earnings between $20,000.00 and $35,000.00, you’ll pay 1.75% plus $280.00
3. For earnings between $35,000.00 and $40,000.00, you’ll pay 3.5% plus $542.50
4. For earnings between $40,000.00 and $75,000.00, you’ll pay 5.53% plus $717.50
5. For earnings between $75,000.00 and $500,000.00, you’ll pay 6.37% plus $2,651.25
6. For earnings between $500,000.00 and $5,000,000.00, you’ll pay 8.97% plus $29,723.75
7. For earnings over $5,000,000.00, you’ll pay 10.75% plus $433,373.75
New Mexico Tax Brackets
1. For earnings between $0.00 and $5,500.00, you’ll pay 1.7%
2. For earnings between $5,500.00 and $11,000.00, you’ll pay 3.2% plus $93.50
3. For earnings between $11,000.00 and $16,000.00, you’ll pay 4.7% plus $269.50
4. For earnings over $16,000.00, you’ll pay 4.9% plus $504.50
New York Tax Brackets
1. For earnings between $0.00 and $8,500.00, you’ll pay 4%
2. For earnings between $8,500.00 and $11,700.00, you’ll pay 4.5% plus $340.00
3. For earnings between $11,700.00 and $13,900.00, you’ll pay 5.25% plus $484.00
4. For earnings between $13,900.00 and $21,400.00, you’ll pay 5.9% plus $599.50
5. For earnings between $21,400.00 and $80,650.00, you’ll pay 6.21% plus $1,042.00
6. For earnings between $80,650.00 and $215,400.00, you’ll pay 6.49% plus $4,721.43
7. For earnings between $215,400.00 and $1,077,550.00, you’ll pay 6.85% plus $13,466.70
8. For earnings over $1,077,550.00, you’ll pay 8.82% plus $72,523.98
North Carolina Tax Brackets
1. For earnings over $0.00, you’ll pay 5.25% plus $0.00
North Dakota Tax Brackets
1. For earnings between $0.00 and $39,450.00, you’ll pay 1.1%
2. For earnings between $39,450.00 and $95,500.00, you’ll pay 2.04% plus $433.95
3. For earnings between $95,500.00 and $199,250.00, you’ll pay 2.27% plus $1,577.37
4. For earnings between $199,250.00 and $433,200.00, you’ll pay 2.64% plus $3,932.50
5. For earnings over $433,200.00, you’ll pay 2.9% plus $10,108.78
Ohio Tax Brackets
1. For earnings between $21,750.00 and $43,450.00, you’ll pay 2.85%
2. For earnings between $43,450.00 and $86,900.00, you’ll pay 3.33% plus $618.45
3. For earnings between $86,900.00 and $108,700.00, you’ll pay 3.8% plus $2,063.60
4. For earnings between $108,700.00 and $217,400.00, you’ll pay 4.41% plus $2,892.43
5. For earnings over $217,400.00, you’ll pay 4.8% plus $7,689.36
Oklahoma Tax Brackets
1. For earnings between $0.00 and $1,000.00, you’ll pay 0.5%
2. For earnings between $1,000.00 and $2,500.00, you’ll pay 1% plus $5.00
3. For earnings between $2,500.00 and $3,750.00, you’ll pay 2% plus $20.00
4. For earnings between $3,750.00 and $4,900.00, you’ll pay 3% plus $45.00
5. For earnings between $4,900.00 and $7,200.00, you’ll pay 4% plus $79.50
6. For earnings over $7,200.00, you’ll pay 5% plus $171.50
Oregon Tax Brackets
1. For earnings between $0.00 and $3,550.00, you’ll pay 5%
2. For earnings between $3,550.00 and $8,900.00, you’ll pay 7% plus $177.50
3. For earnings between $8,900.00 and $125,000.00, you’ll pay 9% plus $552.00
4. For earnings over $125,000.00, you’ll pay 9.9% plus $11,001.00
Pennsylvania Tax Brackets
1. For earnings over $0.00, you’ll pay 3.07% plus $0.00
Rhode Island Tax Brackets
1. For earnings between $0.00 and $65,250.00, you’ll pay 3.75%
2. For earnings between $65,250.00 and $148,350.00, you’ll pay 4.75% plus $2,446.88
3. For earnings over $148,350.00, you’ll pay 5.99% plus $6,394.13
South Carolina Tax Brackets
1. For earnings between $0.00 and $3,070.00, you’ll pay 0%
2. For earnings between $3,070.00 and $6,150.00, you’ll pay 3% plus $0.00
3. For earnings between $6,150.00 and $9,230.00, you’ll pay 4% plus $92.40
4. For earnings between $9,230.00 and $12,310.00, you’ll pay 5% plus $215.60
5. For earnings between $12,310.00 and $15,400.00, you’ll pay 6% plus $369.60
6. For earnings over $15,400.00, you’ll pay 7% plus $555.00
South Dakota Tax Brackets
1. South Dakota has no income tax
Tennessee Tax Brackets
1. 1% tax only on dividends and interest
Texas Tax Brackets
1. Texas has no income tax
Utah Tax Brackets
1. For earnings over $0.00, you’ll pay 4.95% plus $0.00
Vermont Tax Brackets
1. For earnings between $0.00 and $39,600.00, you’ll pay 3.35%
2. For earnings between $39,600.00 and $96,000.00, you’ll pay 6.6% plus $1,326.60
3. For earnings between $96,000.00 and $200,200.00, you’ll pay 7.6% plus $5,049.00
4. For earnings over $200,200.00, you’ll pay 8.75% plus $12,968.20
Virginia Tax Brackets
1. For earnings between $0.00 and $3,000.00, you’ll pay 2%
2. For earnings between $3,000.00 and $5,000.00, you’ll pay 3% plus $60.00
3. For earnings between $5,000.00 and $17,000.00, you’ll pay 5% plus $120.00
4. For earnings over $17,000.00, you’ll pay 5.75% plus $720.00
Washington Tax Brackets
1. Washington has no income tax
West Virginia Tax Brackets
1. For earnings between $0.00 and $10,000.00, you’ll pay 3%
2. For earnings between $10,000.00 and $25,000.00, you’ll pay 4% plus $300.00
3. For earnings between $25,000.00 and $40,000.00, you’ll pay 4.5% plus $900.00
4. For earnings between $40,000.00 and $60,000.00, you’ll pay 6% plus $1,575.00
5. For earnings over $60,000.00, you’ll pay 6.5% plus $2,775.00
Wisconsin Tax Brackets
1. For earnings between $0.00 and $11,970.00, you’ll pay 4%
2. For earnings between $11,970.00 and $23,930.00, you’ll pay 5.21% plus $478.80
3. For earnings between $23,930.00 and $263,480.00, you’ll pay 6.27% plus $1,101.92
4. For earnings over $263,480.00, you’ll pay 7.65% plus $16,121.70
Wyoming Tax Brackets
1. Wyoming has no income tax
References:
1. https://www.thebalance.com/state-income-tax-rates-3193320
2. https://en.wikipedia.org/wiki/State_income_tax
Last Updated on February 3, 2022 by
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.
