State income tax by state: Lowest & highest taxed states
At a glance
- Income tax by state varies, so not every state taxes its residents the same.
- Some states have a flat tax rate, some have “progressive” or marginal tax rates, and some don’t have any state income tax at all.
- States with the highest state income tax include California with a top marginal rate of 12.3% (with an additional 1% income tax on personal income in excess of $1 million per year), Hawaii at 11%, and New York at 10.9%.
- Nine states don’t impose any state income tax, including Alaska, Florida, New Hampshire, South Dakota, and others.
- Tax rates by state for the lowest taxed states include North Dakota, with a top marginal rate of 2.5%, Pennsylvania, with a flat rate of 3.07%, and Indiana, with a flat rate of 3.15%.
Unlike the federal tax rates, state income tax rates vary. So, not every state has the same income tax rate—and some are income tax-free. Tax on individual income varies from state to state and can range from 0 to 12.3%.
In addition to the highest or lowest state tax rates below, you can view more information about other state income tax rates and tax obligations.
Learn more about which states have the highest and lowest individual income tax rates, as well as other critical details about state taxes by state.
What are state taxes?
State income taxes are money that some state governments take from your paycheck based on how much you earn. The tax rate by state, or tax amount, depends on where you live and your income.
Highest taxed states
Here are the current states with the highest state taxes, including states with the highest top rates or flat rates:
- California (12.3%, with 1% tax on income in excess of $1 million)
- Hawaii (11%)
- New York (10.9%)
- New Jersey (10.75%)
- District of Columbia (10.75%)
- Oregon (9.9%)
- Minnesota (9.85%)
- Massachusetts (5%, with 4% surtax on taxable income in excess of $1,053,750)
- Vermont (8.75%)
- Wisconsin (7.65%)
The states with the highest state income tax all have progressive tax rates, so the rates above are the highest tax rate for each state. Your personal tax burden will depend on your filing status and tax bracket. For example, the highest tax rate in California is 12.3%, but that personal income tax rate only applies if you’re a Single taxpayer earning income over $721,314.
Keep in mind, tax rates can change, so the highest taxed states may vary year over year, so check back each year with your state treasury/local tax department.
File with H&R Block to get your max refund
States with the lowest taxes
Most taxpayers in the United States will have to file a federal and state tax return. However, that’s not the case in every state. If you’re a taxpayer in one of the seven states without an individual income tax, you don’t have to file a state income tax return. Here are the states with no income tax:
- Alaska
- Florida
- Nevada
- New Hampshire (no longer imposes tax on dividend or interest income starting in tax year 2025)
- South Dakota
- Tennessee
- Texas
- Washington (levies tax on long-term capital gains)
- Wyoming
Remember, if you live and work in a state without individual income taxes, you don’t pay state-level taxes on your income from Social Security, pensions, or retirement plans. However, you may still be subject to other taxes, including local tax, property tax, and sales tax.
States with lowest income tax, excluding no income tax states
The lowest taxed states among taxing states are:
- North Dakota (Top marginal rate: 2.5%, applies to incomes over $440,600 for Married Filing Jointly)
- Pennsylvania (Flat tax rate of3.07%)
- Indiana (Flat tax rate of 3.05% in 2024, 3% in 2025)
- Michigan (Flat tax rate of 4.25%)
- Colorado (Flat tax rate of 4.4%)
Taxes by state: Other state tax information
If you’ve filed your state tax return and are wondering about the status of your tax refund, we can help! Learn how to track your state tax refund.
Similar to the rules from the Internal Revenue Service (IRS) taxes, most states will require those who have income that’s not subject to tax withholding (like businesses or self-employed individuals) to pay estimated taxes.
Your state will also impose penalties and interest if you fail to file and pay your state taxes on time.
Filing state and federal income taxes
When you file your federal income taxes, you will likely complete a state tax return that’s sent to your state’s revenue agency. As you file your taxes, you may either owe money or get a refund, depending on the amount you withheld throughout the year.
If you move to a different state within a tax year, or work in one state and live in another, state taxes can get a little more complex. Find out what you need to know about how to file taxes in more than one state.
Get help filing state taxes
Need help beyond state tax rates? H&R Block has many ways to help you file your state and federal income tax returns. If you want to tackle taxes yourself, use our state tax filing software. Or you can choose online tax preparation with tax pros with state-specific tax expertise.
Looking for other state tax information? See more on no income tax states, state sales tax, and when you have to file a state personal income tax return.
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