1001, enacted in May 2023, Indiana accelerated its previously enacted tax rate reductions, lowering the individual income tax rate from 3.05 in 2024 to 3.00 percent in 2025. The law also repealed previously enacted tax triggers, instead prescribing a rate reduction to 2.95 percent in 2026, and 2.9 percent in 2027 and beyond. 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. The amount a person owes in state income taxes depends on their income level and the tax rate set by their state. Some states have a flat tax rate, which means everyone pays the same percentage of their income in taxes, no matter how much they earn.

3 – New York Dependent Deduction

• The state with the highest income tax bracket is California, which has a maximum tax rate of 13.3%.
• 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.
• 6941, Connecticut legislators reduced individual income tax rates for the two lowest brackets, from 3 percent to 2 percent and from 5 percent to 4.5 percent, respectively.
• Following the tables, we document notable individual income tax changes implemented in 2024.
• The amount a person owes in state income taxes depends on their income level and the tax rate set by their state.
• While that’s higher than the national average, it’s better than many other states that refrain from charging an income tax.

Policymakers should consider the unintended consequences, both to public health and public coffers, of the excise taxes and regulatory regimes for cigarettes and other nicotine products. As a rule, an individual’s income can be taxed both by the state in which the taxpayer resides and by the state in which bookkeeping for cleaning business the taxpayer’s income is earned. That means every state has its own specific policy — with eight states not charging any income tax at all. Once you’ve filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your New York tax refund, you can visit the New York Income Tax Refund page.

State Individual Income Tax Rates and Brackets, 2024

That doesn’t include state income tax rates some localities that charge their own local income tax. And when you live in the Aloha State, you’ll have to fork over a significant amount of money. Hawaii has a 11% tax rate for individuals with an AGI of more than $200,000 and couples with an AGI of more than $400,000. Other than the states that do not levy an individual income tax, North Dakota has the lowest income tax rate in the nation. Finally, Louisiana also has a lower income tax rate of 1.85% to 4.25%.

Налоговая служба (Internal Revenue Service, IRS)

• This data can be downloaded as an Excel file, courtesy of The Tax Foundation .
• There is a 2.5% state penalty on early distributions from retirement plans, annuities and IRAs.
• Now, let’s look at the various types of taxes, starting with what state income taxes are, how they work, and why understanding these can make a difference to your financial well-being.
• The Lone Star State may be one of the most popular options for workers trying to avoid income tax.
• Oregon, on the other hand, taxes most retirement income at its top tax rate of 9.9%.
• States with maximum state income tax rates of at least 6% but less than 8% include Wisconsin, Maine, Washington, Connecticut, Montana, Nebraska, Delaware, South Carolina, West Virginia, and Iowa.

However, some states may have different deadlines, and it’s worth checking the specifics for where What is bookkeeping you live, especially in years where the date might be pushed due to holidays or weekends. States with maximum income tax rates of at least 5% but less than 6% are Rhode Island, New Mexico, Idaho, Georgia, Maryland, Virginia, Kansas, Alabama, and Mississippi. States with maximum state income tax rates of at least 6% but less than 8% include Wisconsin, Maine, Washington, Connecticut, Montana, Nebraska, Delaware, South Carolina, West Virginia, and Iowa.

For details on other state taxes as well as state tax breaks for retirees see the complete guide to taxes on retirees in Minnesota. For details on other state taxes as well as state tax breaks for retirees see the complete guide to taxes on retirees in Iowa. For details on other state taxes as well as state tax breaks for retirees see the complete guide to taxes on retirees in Hawaii. For details on other state taxes as well as state tax breaks for retirees see the complete guide to taxes on retirees in California. Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more. Income tax rates for the highest earners vary widely from state to state.

New York has a 25.68 cents per gallon gas tax rate and a $5.35 cigarette excise tax rate. The State of New York collects $10,380 in state and local tax collections per capita. New York has $19,407 in state and local debt per capita and has a 92 percent funded ratio of public pension plans.

Have you ever wondered which states let you hold onto more cash and which ones dip deeper into your earnings? We’re here to outline the states where you’ll pay the highest and lowest income taxes, giving you a clearer picture of your financial landscape. The table below shows how each state’s individual income tax is structured. Compare states with no income tax, flat income taxes, or graduated-rate income tax.

State Individual Income Tax Rates and Brackets, 2015

• The IRS maintains a list of state government websites where taxpayers can find information about filing, paying, and calculating taxes.
• The lowest was Hawaii at 0.27%, coming out to $2,183 annual taxes on a median value home in the Aloha State.
• Additionally, each state has different costs of living and public services that might balance out the tax savings.
• (set at $15,000 for single filers and $30,000 for joint filers in 2025) while suspending the personal exemption by reducing it to $0 through 2025.
• Forty-three states and Washington, DC, collect income taxes every year—and seven states collect no income tax.

However, states still need to raise money so many of them charge a high sales tax to make up for the lost revenue. Budgetary needs drive the tax rates of each state, funding essentials like schools, roads, and public safety. These requirements regularly prompt state governments to review and adjust tax rates to align with their spending goals. Now, let’s look at the various types of taxes, starting with what state income taxes are, how they work, and why understanding these can make a difference to your financial well-being.

The state rate is 7%, while the local rate differs depending on the city. The average combined rate for state and local sales tax is 9.55%. New York’s maximum marginal income tax rate is the 1st highest in the United States, ranking directly below New York’s %.