Your Guide to State Income Tax Rates

Location is everything if you want to save a few income tax dollars. Overall, state tax rates range from 0% to more than 13% as of 2020. California, Hawaii, Oregon, Minnesota, and New Jersey have some of the highest state income tax rates in the country and seven states have no tax on earned income at all. Another nine have a flat tax rate—everyone pays the same percentage regardless of how much they earn.

What’s your state’s tax rate? Don’t pack your bags just yet to move to a kinder tax climate. Learn which states have the highest tax rates, no taxes, and flat taxes; and see a complete list of tax rates for every state in the union. 

2020 Top Income Tax Rates By State

California tops the list with the highest tax rates in the country—its highest tax rate is a full 2.3% more than Hawaii, the runner-up for the highest tax rate. California applies its highest tax rate to those who earn more than $1 million. 

Rounding out the top-10 states with the highest tax rates are:

• New Jersey: 10.75%
• Oregon: 9.90%
• Minnesota: 9.85%
• District of Columbia: 8.95%
• New York: 8.82%
• Vermont: 8.75%
• Iowa: 8.53%
• Wisconsin: 7.65% 

States Without Income Tax

On the flip side, Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don’t impose an income tax at all. Tennessee and New Hampshire fall into a gray area. They don't levy a tax on earned income but they do tax interest and dividends at 1% and 5%, respectively. 

Some states generate revenue in other ways, though:

• Tennessee has one of the highest combined state and local sales tax rates in the country. Your paycheck might be safe, but you'll be dinged at the cash register.
• New Hampshire and Texas have high property taxes in relation to home values.
• Washington charged the third-highest tax on gasoline in 2019.

States With Flat Tax Rates

Among the states that do have income taxes, many residents get a break because the highest rates don't kick in until upper-income levels. But this isn't the case in the nine states that have flat tax rates as of 2020. The flat-tax states and their rates, from highest to lowest, are:

• North Carolina: 5.25%
• Massachusetts and Kentucky: 5%
• Illinois and Utah: 4.95%
• Colorado: 4.63%
• Michigan: 4.25%
• Indiana: 3.23%
• Pennsylvania: 3.07%

A State-by-State Comparison of Income Tax Rates

The remaining states and the District of Columbia charge a "progressive" tax on all income, based on tax brackets. The more you earn, the higher the percentage you'll pay in income tax on your top dollars. For example, California's top rate is 13.3%, but you'll only pay this on income over $1 million.

The rates and income thresholds for individuals filing single in 2020, including those states that have no income tax and those who tax at a flat rate, are: 

• Alabama: 2% to 5%, the highest rate applying to incomes over $3,000 
• Alaska: No income tax
• Arizona: 2.59% to 4.50%, the highest rate applying to incomes over $159,000
• Arkansas: 2% to 6.60%, the highest rate applying to incomes over $80,801 
• California: 1% to 13.30%, the highest rate applying to incomes over $1,000,000
• Colorado: A flat rate of 4.63% of federal taxable income with modifications
• Connecticut: 3% to 6.99%, the highest rate applying to incomes over $500,000
• Delaware: 0% to 6.60%, the highest rate applying to incomes over $60,001
• Florida: No income tax
• Georgia: 1% to 5.75%, the highest rate applying to incomes over $7,001
• Hawaii: 1.40% to 11%, the highest rate applying to incomes over $200,000 
• Idaho: 1.125% to 6.925%, the highest rate applying to incomes over $11,554
• Illinois: A flat rate of 4.95%
• Indiana: A flat rate of 3.23%
• Iowa: 0.33% to 8.53%, the highest rate applying to incomes over $74,970
• Kansas: 3.10% to 5.70%, the highest rate applying to incomes over $30,000
• Kentucky: A flat rate of 5%
• Louisiana: 2% to 6%, the highest rate applying to incomes over $50,001
• Maine: 5.80% to 7.15%, the highest rate applying to incomes over $52,600 
• Maryland: 2% to 5.75%, the highest rate applying to incomes over $250,000 
• Massachusetts: A flat rate of 5%
• Michigan: A flat rate of 4.25%
• Minnesota: 5.35% to 9.85%, the highest rate applying to incomes over $164,401 
• Mississippi: 3% to 5%, the highest rate applying to incomes over $10,001 
• Missouri: 1.5% to 5.40%, the highest rate applying to incomes over $8,424
• Montana: 1.0% to 6.90%, the highest rate applying to incomes over $18,400 
• Nebraska: 2.46% to 6.84%, the highest rate applying to incomes over $31,750
• Nevada: No income tax
• New Hampshire: A flat rate of 5% on dividends and interest income
• New Jersey: 1.40% to 10.75%, the highest rate applying to incomes over $5 million
• New Mexico: 1.70% to 4.90%, the highest rate applying to incomes over $16,001
• New York: 4% to 8.82%, the highest rate applying to incomes over $1,077,550 
• North Carolina: A flat rate of 5.25%
• North Dakota: 1.10% to 2.90%, the highest rate applying to incomes over $433,200
• Ohio: 0% to 4.797%, the highest rate applying to incomes over $217,400
• Oklahoma: 0.50% to 5%, the highest rate applying to incomes over $7,200
• Oregon: 4.75% to 9.90%, the highest rate applying to incomes over $125,000
• Pennsylvania: A flat rate of 3.07%
• Rhode Island: 3.75% to 5.99%, the highest rate applies to incomes over $148,350
• South Carolina: 0% to 7%, the highest rate applies to incomes over $15,400
• South Dakota: No income tax
• Tennessee: A flat rate of 1% on dividends and earned interest
• Texas: No income tax
• Utah: A flat rate of 4.95%
• Vermont: 3.35% to 8.75%, the highest rate applies to incomes over $204,000
• Virginia: 2% to 5.75%, the highest rate applies to incomes over $17,001
• Washington: No income tax
• West Virginia: 3% to 6.50%, the highest rate applies to incomes over $60,000
• Wisconsin: 4% to 7.65%, the highest rate applies to incomes over $263,480
• Wyoming: No income tax
• District of Columbia: 4% to 8.95%, the highest rate applies to incomes over $1 million

State Tax Changes for 2020

Tax laws can change at any time as legislation is passed or repealed. The following changes are effective for the 2020 tax season:

• Arizona: Top rate dropped from 4.54% to 4.50%
• Arkansas: Top rate dropped from 6.90% to 6.60%
• Massachusetts: Flat-tax rate dropped from 5.05% to 5.00%
• Ohio: Reduced number of tax brackets from seven to five, then dropped income tax rates by 4%
• Tennessee: Tax rate on interest income and dividends dropped from 2% to 1%
• Wisconsin: Dropped one of its marginal tax rates from 5.84% to 5.21%