The top ten states with the highest marginal income tax rates are, as of January 1, 2022:

  1. California   13.30%
  2. Hawaii   11.00%
  3. New York   10.90%
  4. New Jersey  10.75%
  5. (tie) D.C.   10.75%
  6. Oregon    9.90%
  7. Minnesota   9.85%
  8. Vermont   8.75%
  9. Iowa   8.53%
  10. Wisconsin   7.65%

The top ten states with the lowest marginal income tax rates are, as of January 1, 2022:

  1. Alaska   None
  2. Florida   None
  3. Nevada   None
  4. New Hampshire   None (only 5.00% tax on interest and dividends income)
  5. South Dakota   None
  6. Tennessee   None
  7. Texas   None
  8. Washington   None (only 7.00% tax on capital gains income)
  9. Wyoming   None
  10. 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/