Income/Wages Taxes
Income Tax by State 2025
Lowest Bracket
1%
2%
3%
4%
5%
6%
7%
8%
State | Lowest Bracket↓ | Highest Bracket | |
|---|---|---|---|
 | Washington | 7% | 7% |
 | Idaho | 5.8% | 5.8% |
 | Maine | 5.8% | 7.15% |
 | Minnesota | 5.35% | 9.85% |
 | Massachusetts | 5% | 9% |
 | Mississippi | 5% | 5% |
 | Illinois | 4.95% | 4.95% |
 | Utah | 4.85% | 4.85% |
 | North Carolina | 4.75% | 4.75% |
 | Oregon | 4.75% | 9.9% |
 | Kentucky | 4.5% | 4.5% |
 | Colorado | 4.4% | 4.4% |
 | Iowa | 4.4% | 6% |
 | Michigan | 4.25% | 4.25% |
 | District of Columbia | 4% | |
 | New Hampshire | 4% | 4% |
 | New York | 4% | 10.9% |
 | Rhode Island | 3.75% | 5.99% |
 | Wisconsin | 3.54% | 7.65% |
 | Vermont | 3.35% | 8.75% |
 | Indiana | 3.15% | 3.15% |
 | Kansas | 3.1% | 5.7% |
 | Pennsylvania | 3.07% | 3.07% |
 | Connecticut | 3% | 6.99% |
 | West Virginia | 3% | 6.5% |
 | Ohio | 2.76% | 3.99% |
 | Arizona | 2.5% | 2.5% |
 | Nebraska | 2.46% | 6.64% |
 | Delaware | 2.2% | 6.6% |
 | Alabama | 2% | 5% |
 | Arkansas | 2% | 4.9% |
 | Maryland | 2% | 5.75% |
 | Missouri | 2% | 4.95% |
 | Virginia | 2% | 5.75% |
 | Louisiana | 1.85% | 4.25% |
 | New Mexico | 1.7% | 5.9% |
 | Hawaii | 1.4% | 11% |
 | New Jersey | 1.4% | 10.75% |
 | North Dakota | 1.1% | 2.9% |
 | California | 1% | 13.3% |
 | Georgia | 1% | 5.75% |
 | Montana | 1% | 6.75% |
 | Oklahoma | 0.25% | 4.75% |
 | South Carolina | 6.5% | |
 | United States | 3.24% | 6.23% |
In the United States, each state has its own policy for collecting income taxes. Income taxes are just one of the ways that state governments make revenues for operations – think of things like building schools and repairing roads. Of the 50 states, a total of 43 have some form of state income tax.
In 41 states, wages and salaries are taxed. In New Hampshire, only interest income and tax dividends are taxed at a rate of 4%, but not personal income tax. Similarly, Washington has a tax rate of 7%, but this is only on capital gains income. In the remaining seven states, there is no state income tax. However, the state makes revenue through other forms of taxation, such as higher property tax rates or higher sales tax rates.
These aren’t the only differences among the states when it comes to income taxes, either. For example, some states have their own deductions and exemptions, others use rates based on the federal tax code, while other states don’t allow any deductions or exemptions. Some states have different brackets for married and single tax filers.
State | Highest Bracket |
|---|---|
| California | 13.3% |
| Hawaii | 11% |
| New York | 10.9% |
| New Jersey | 10.75% |
| Oregon | 9.9% |
| Minnesota | 9.85% |
| Massachusetts | 9% |
| Vermont | 8.75% |
| Wisconsin | 7.65% |
| Maine | 7.15% |
For the purpose of this article, we’re going to take a look at the latest marginal individual income tax rates as of 2023. It is important to remember that this data is subject to change over time but is accurate as of March 2023.
The state with the highest income tax bracket is California, which has a maximum tax rate of 13.3%. The lowest tax bracket in California is 1%, which is one of the lowest in the nation. The next highest income tax rate is found in Hawaii, where the highest bracket has a rate of 11%. The lowest income tax bracket in Hawaii is 1.4%.
Other states with income tax rates that exceed 8% include New Jersey, Vermont, Minnesota, Massachusetts, Washington D.C., New York, and Oregon.
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.
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.
Other than the states that do not levy an individual income tax, North Dakota has the lowest income tax rate in the nation. The tax rates in this state fall between 1.1% and 2.9%. Ohio has the second-lowest rates at 2.76% to 3.99%. Finally, Louisiana also has a lower income tax rate of 1.85% to 4.25%.
