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Income Tax Rate, Individual Top and Bottom Rates

Source: Tax Foundation
Latest Data: 2023
Frequency: Annual
Contact: Morgan Scarboro, (202) 464-6200, scarboro@taxfoundation.org

This data comes from the annual Tax Foundation survey of state income tax practices. We report the top and bottom individual income tax rates reported for single filers.   

According to the Tax Foundation, these are the key findings in their report:

  • Individual income taxes are a major source of state government revenue, accounting for 38 percent of state tax collections in fiscal year 2018, the latest year of data available.
  • Forty-two states levy individual income taxes. Forty-one tax wage and salary income, while one state—New Hampshire—exclusively taxes dividend and interest income. Eight states levy no individual income tax at all.
  • Of those states taxing wages, nine have single-rate tax structures, with one rate applying to all taxable income. Conversely, 32 states and the District of Columbia levy graduated-rate income taxes, with the number of brackets varying widely by state. Hawaii has 12 brackets, the most in the country.
  • States’ approaches to income taxes vary in other details as well. Some states double their single-bracket widths for married filers to avoid a “marriage penalty.” Some states index tax brackets, exemptions, and deductions for inflation; many others do not. Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all.

Source: Tax Foundation; state tax statutes, forms, and instructions; Bloomberg BNA.