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.
Top Income Tax Rates by State
Below, you’ll find the top 10 states with the highest income tax rates. Other states have a top tax rate, but not all states have the same number of income brackets leading up to the top rate. For example, Hawaii has a top tax rate of 11% and 12 income brackets, while Iowa has a top tax rate of 8.53% and nine income brackets. And although Washington, D.C.. is not a state, it has its own income tax rate.
States Without Income Tax
Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming don’t impose an income tax at all. New Hampshire falls into a gray area; it doesn’t levy a tax on earned income, but it does tax interest and dividends at a flat 5%. Since they don’t collect income tax, some states generate revenue in other ways. 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. Pennsylvania charged the highest tax on gasoline in 2021.
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 10 states that have flat tax rates. The flat-tax states and their rates, from highest to lowest, can be seen in the table below. The rates and income thresholds for individuals filing single for tax year 2022, including those states that have no income tax and those who tax at a flat rate, are as follows:
