State Income Tax Comparison: All 50 States

Where you live has a massive impact on your take-home pay. State income tax rates range from 0% to over 13%, and the differences add up to thousands of dollars each year. This guide compares income tax structures across all 50 states and the District of Columbia, organized by tax type, so you can see exactly how your state stacks up.

Use our state-specific calculators to see your exact take-home pay. Try the take-home pay calculator and select your state for a personalized breakdown.

The 9 States with No Income Tax

These states do not levy any tax on wage or salary income, making them popular destinations for high earners and retirees:

  1. Alaska - No income tax; also distributes an annual Permanent Fund Dividend to residents
  2. Florida - No income tax; constitutionally prohibited from enacting one
  3. Nevada - No income tax; revenue comes from gaming and sales taxes
  4. New Hampshire - No tax on wages (previously taxed interest and dividends, but that tax was fully phased out)
  5. South Dakota - No income tax; also no corporate income tax
  6. Tennessee - No tax on wages (the Hall Tax on investment income was fully repealed in 2021)
  7. Texas - No income tax; constitutionally prohibited; relies heavily on property and sales tax
  8. Washington - No income tax on wages; has a capital gains tax on high earners enacted in 2022
  9. Wyoming - No income tax; also no corporate income tax

Living in a no-tax state does not automatically mean a lower total tax burden. These states often compensate with higher property taxes, sales taxes, or other fees. For a deeper analysis, see our guide on moving to a no-income-tax state.

Flat-Tax States (Single Rate)

These states apply a single tax rate to all taxable income regardless of how much you earn. Flat taxes are simpler to calculate and have become increasingly popular, with several states recently converting from progressive systems:

State Flat Rate Notes
Arizona2.5%Reduced from graduated rates in 2023
Colorado4.4%Reduced from 4.55% in 2024
Georgia5.39%Transitioning to 4.99% flat rate by 2029
Idaho5.695%Converted from graduated in 2023
Illinois4.95%Flat rate mandated by state constitution
Indiana3.05%Gradually reducing; was 3.23% in 2023
Iowa3.8%Transitioning to flat rate; was graduated
Kentucky4.0%Reduced from 5% in 2023
Michigan4.25%Long-standing flat rate
Mississippi4.7%Transitioning to lower flat rate
North Carolina4.5%Gradually reducing; was 5.25% in 2022
Pennsylvania3.07%One of the lowest flat rates
Utah4.65%Reduced from 4.85% in 2023
Massachusetts5.0%Plus 4% surtax on income over $1M

Progressive-Tax States (Graduated Brackets)

The remaining states use graduated bracket systems similar to the federal tax code, where higher income is taxed at progressively higher rates. Here are the states with the highest top marginal rates:

States with Highest Top Marginal Rates

State Top Rate Top Bracket Starts At Number of Brackets
California13.3%$1,000,00010
Hawaii11.0%$200,00012
New Jersey10.75%$1,000,0007
Oregon9.9%$125,0004
Minnesota9.85%$193,2404
New York10.9%$25,000,0009
Vermont8.75%$229,5004
District of Columbia10.75%$1,000,0007
Wisconsin7.65%$405,5504
Maine7.15%$58,0503

States with Lowest Top Marginal Rates (Progressive)

State Top Rate Brackets
North Dakota2.5%4
Arkansas3.9%3
Alabama5.0%3
Louisiana4.25%3
Oklahoma4.75%6

How $75,000 Is Taxed Across States

To put these rates in perspective, here is what a single filer earning $75,000 would pay in state income tax across a selection of states:

State Approx. State Tax Effective Rate
Texas$00.0%
Florida$00.0%
Pennsylvania$2,3033.07%
Arizona$1,8752.5%
Illinois$3,7134.95%
Colorado$3,3004.4%
New York$3,5344.7%
California$3,1314.2%
Oregon$6,1788.2%
Hawaii$4,7846.4%

Notice that Oregon and Hawaii impose significantly higher effective rates even at moderate incomes because their top brackets kick in at relatively low thresholds. California's effective rate at $75,000 is moderate because its highest brackets only apply to very high earners.

Beyond Income Tax: Total State Tax Burden

Comparing states solely by income tax is misleading. States without income tax often have higher taxes elsewhere:

Property Tax

Texas, which has no income tax, has one of the highest average property tax rates at 1.60% of assessed home value. On a $400,000 home, that is $6,400 per year. New Hampshire's effective property tax rate is even higher at around 1.86%. Compare this to Hawaii's rate of just 0.29%. Learn more in our property tax guide.

Sales Tax

Combined state and local sales tax rates vary from 0% (Delaware, Montana, Oregon, New Hampshire) to over 9% (Tennessee, Louisiana, Arkansas, Washington, Alabama when including local rates). A high sales tax disproportionately affects lower-income residents. See our sales tax guide for details.

Other Taxes and Fees

States also vary on vehicle registration fees, gas taxes, estate taxes, excise taxes, and various fees. Washington state has one of the highest gas taxes in the nation. Florida charges a document stamp tax on real estate transactions.

Several significant trends are shaping state tax policy:

  • Flat tax conversions: Multiple states have switched from graduated to flat income tax systems, including Arizona, Iowa, and Mississippi, often with plans to further reduce rates.
  • Rate reductions: States like North Carolina, Indiana, and Kentucky are on multi-year schedules to lower their rates, sometimes contingent on revenue targets being met.
  • Millionaire surtaxes: Massachusetts added a 4% surtax on income over $1 million in 2023. Similar proposals have been considered in other states.
  • Remote work complications: With more workers living in one state and working for employers in another, state tax rules for remote workers remain complex and evolving.

State Tax for Remote Workers

If you work remotely, you generally owe income tax to the state where you physically perform the work (your residence state). However, some states have "convenience of the employer" rules that tax you in the employer's state even if you never set foot there. New York is the most notable example. If you split time between states, you may need to file returns in multiple states and claim credits to avoid double taxation.

Choosing the Right State for You

When comparing states, consider these factors:

  • Your income level (high earners benefit most from no-tax states)
  • Whether you own or rent (property tax matters more for homeowners)
  • Your spending habits (sales tax matters more for high spenders)
  • Cost of living differences (a lower tax state may have higher housing costs)
  • Quality of public services (education, infrastructure, healthcare access)

Use our take-home pay calculator to compare your net pay across states, or explore income tax calculations for any state and filing status.