January 22, 2023
Top 10 Highest & Lowest Income Tax States
PlanEasy's Quick Bites
- Based on data from the Tax Foundation, the highest income tax state is California at 13.30%
- There are nine states with no personal income tax, though, among these, Washington only taxes capital gains income, while New Hampshire only taxes income from interest and dividends
There are nine states with no personal income tax, though, among these, Washington only taxes capital gains income, while New Hampshire only taxes income from interest and dividends
The top ten states with the highest marginal income tax rates are, as of January 1, 2022:
- California 13.30%
- Hawaii 11.00%
- New York 10.90%
- New Jersey 10.75%
- (tie) D.C. 10.75%
- Oregon 9.90%
- Minnesota 9.85%
- Vermont 8.75%
- Iowa 8.53%
- Wisconsin 7.65%
The top ten states with the lowest marginal income tax rates are, as of January 1, 2022:
- Alaska None
- Florida None
- Nevada None
- New Hampshire None (only 5.00% tax on interest and dividends income)
- South Dakota None
- Tennessee None
- Texas None
- Washington None (only 7.00% tax on capital gains income)
- Wyoming None
- North Dakota 2.90%
Note: Shown above are marginal income tax rates for the top income bracket in that state.
Source: Tax Foundation, “State Individual Income Tax Rates and Brackets for 2022,” February 15, 2022: https://taxfoundation.org/publications/state-individual-income-tax-rates-and-brackets/
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