States With the Highest and Lowest Income Taxes

Income Tax Rates by State

The state-by-state income tax rates shown in the chart below generally follow one of three models:

• No taxes: Eight states don't collect any personal income taxes.
• Flat tax rates: All taxable income—after personal deductions and exemptions—is taxed at the same rate.
• Graduated tax rates: Similar to the marginal tax rates used on your federal income taxes, graduated tax rates divide your income into brackets that are each taxed at their own rate, with the lowest brackets having the lowest rates.

Here are state income tax rates in all 50 states and the District of Columbia.

State Income Tax Rates in All 50 States

States With the Highest Income Taxes

The states with the highest marginal tax rates include California, Hawaii, New York and the District of Columbia. Here are states with the top 10 marginal tax rates in the U.S. in 2024:

1. California (13.3%)
2. Hawaii (11%)
3. New York (10.9%)
4. District of Columbia (10.75%)
5. New Jersey (10.75%)
6. Minnesota (9.85%)
7. Oregon (8.75%)
8. Vermont (8.75%)
9. Wisconsin (7.65%)
10. Maine (7.15%)

Learn more: What Are the Tax Brackets for 2025?

High State Income Tax Rate Example

In California, taxpayers pay a top marginal tax rate of 12.3% with an additional 1% tax on incomes over $1 million as part of the Mental Health Services Act. The combined top marginal rate of 13.3% is the highest in the U.S., but it only applies to incomes over $1 million for single taxpayers and $1,442,628 for married couples filing jointly.

To get a better sense of how a typical California couple's taxes might look, here's a quick estimate for a married couple with taxable income of $120,000.

This couple's effective tax rate doesn't get anywhere near the top rate of 13.3%. In fact, more than half of the couple's income, $80,490, is taxed at 4% or less. Their total tax of $4,520.48 is just over 3.7% of their taxable income, beating seven of the 11 states with flat tax rates shown above.

States With the Lowest Income Taxes

Personal income taxes don't get any lower than they are in the nine states with no income taxes, listed below:

• Alaska
• Florida
• Nevada
• New Hampshire
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

In a few cases, such as New Hampshire and Tennessee, earned income isn't taxed but interest income, dividends or capital gains may be. In other states, personal exemptions, deductions and other provisions can lessen your tax impact.

Remember, too, that personal income tax rates don't necessarily translate into lower taxes overall. Sales tax, property taxes and other local taxes can add up. In fact, other kinds of taxes are often used to raise revenue in states where income taxes are nonexistent or low.

How Does Income Tax Work?

Tax rates alone don't always tell the whole story. Marginal tax rates vary significantly from state to state, and so do the dollar amounts that define each tax bracket. A high top marginal tax rate may not affect you if your income doesn't put you in the top tax bracket. If you want to estimate how much tax you might actually pay in a state with graduated tax rates, you may need to do some additional math.

With graduated tax rates, your income is divided into brackets that are each taxed at their own rate. Using Connecticut's marginal tax rates as an example, here's how it works. A single taxpayer in Connecticut making $95,000 in taxable income (after subtracting exemptions and deductions) pays the following taxes:

• Bracket 1: The first $10,000 is taxed at 2%.

  $10,000 x 2.0% = $200

• Bracket 2: The next portion of their income, up to $50,000, is taxed at 4.5%.

  $40,000 x 4.5% = $1,800

• Bracket 3: The third tier of income, through $95,000, is taxed at 5%.

  $45,000 x 5.5% = $2,475

• To get the total: Add the three brackets together.

  $200 + $1,800 + $2,475 = $4,475

Taxes Are Certain, but Tax Rates Can Vary

For all the variation in tax rates and schemes, the state income taxes you pay are just one factor in your overall financial health. If you're curious about how the tax burden in your state stacks up against others, start by scanning rates in all 50 states, then run the numbers to estimate your potential tax bills and compare. Significant differences could be a factor in your financial planning, whether you want to stay where you are or move to a tax-friendlier state.