States With the Highest and Lowest Income Taxes

Income Tax Rates by State

State income tax rates range from 0% to 13.3%, with rates varying from state to state. The state-by-state income tax rates shown in the table below generally follow one of three models:

• No taxes: Nine states don't collect any personal income taxes.
• Flat tax rates: All taxable income—after deductions and exemptions—is taxed at the same rate.
• Graduated tax rates: Similar to the marginal tax rates used on your federal income taxes, a graduated tax system divides your income into brackets that are each taxed at their own rate, with the lowest brackets having the lowest rates.

Here are state income tax rates in all 50 states and the District of Columbia.

State Income Tax Rates in All 50 States

States With the Highest Income Taxes

The states with the highest marginal tax rates include California, Hawaii, New York and the District of Columbia. Here are the states with the top 10 marginal tax rates in the U.S. in 2025:

1. California (13.3%)
2. Hawaii (11%)
3. New York (10.9%)
4. District of Columbia (10.75%)
5. New Jersey (10.75%)
6. Oregon (9.9%)
7. Minnesota (9.85%)
8. Massachusetts (9%)
9. Vermont (8.75%)
10. Wisconsin (7.65%)

Learn more: What Are the Tax Brackets for 2025?

Example: How High Income Tax Rates Work

A high top marginal tax rate doesn't necessarily mean a high tax bill overall. California has a top marginal tax rate of 12.3% with an additional 1% surcharge on incomes over $1 million as part of the Mental Health Services Act. The combined top marginal rate of 13.3% is the highest in the U.S., but it only applies to incomes over $1 million for single taxpayers and $1,485,906 for married couples filing jointly (in 2025).

To get a better sense of how a typical California couple's taxes might look, here's a quick estimate for a married couple with taxable income of $120,000.

This couple's total tax of $4,368.10 is roughly 3.64% of their taxable income, which beats 10 of the 14 states with flat tax rates shown above. Nearly half of their income, $52,528, is taxed at 2% or less, and their effective tax rate of 3.64% doesn't get anywhere near the top marginal rate of 13.3%.

Which States Have No Income Tax?

At the other end of the rate scale, nine states have no personal income taxes. These nine states include the following:

• Alaska
• Florida
• Nevada
• New Hampshire
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

Although there is no individual income tax on earnings in Washington state, some high-income taxpayers pay a 7% state capital gains tax.

No one's going to quarrel with zero personal income taxes, but remember that less state income tax revenue often means higher sales and property taxes. If you want to evaluate your overall tax burden, consider all the taxes you pay, including federal, state and local taxes.

How Does Income Tax Work?

Different state income tax programs work differently. In general, paying taxes involves calculating your income, subtracting deductions and exemptions, applying tax rates and using tax credits to reduce your tax bill. Here's a basic overview of how income taxes work in most states.

Calculating Income

Taxable income might include money you earn, capital gains, interest income or money you win at gambling. Each state has its own rules for what's included and what isn't. Many use federal guidelines for what constitutes reportable income.

Learn more: Is Savings Account Interest Taxable?

Deductions and Exemptions

Once your income is added up, you may be able to take standard deductions or itemized deductions for items like college plan contributions according to your state's rules. Deductions and exemptions reduce the amount of income that's eligible to be taxed.

Learn more: What Can You Deduct on Your Taxes?

Tax Rates

Your total income minus deductions and exemptions equals your taxable income. Multiply your taxable income by your state's flat tax rate to get your total tax, or apply marginal tax rates according to your state's tax brackets.

Tax Credits

If you're eligible for state tax credits, you may subtract credit amounts from your total tax to get your final tax bill.

Learn more: Tax Credit vs. Tax Deduction: What's the Difference?

Frequently Asked Questions

The Bottom Line

The state income taxes you pay are just one factor in your overall financial health. Comparing income tax rates in your state against tax rates in other places is one way to look at costs, but other factors like property and sales tax rates, cost of living, wages and lifestyle factors also play a major role.

If you're checking up on your general financial well-being, you may want to check into your credit report and credit scores. Building and maintaining good credit can help you gain access to loans and credit at favorable rates; credit can also make a difference when you're applying for an apartment or insurance. Checking your credit regularly is a good way to help ensure your credit is on track and detect signs that you may have been a victim of fraud.