2023 State Income Tax Rates: What They Are, How They Work

State income tax typically works one of three ways: A progressive tax, a flat tax or none at all.
Sabrina Parys
Tina Orem
By Tina Orem and  Sabrina Parys 
Updated
Edited by Chris Hutchison

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Nerdy takeaways
  • State income taxes are different from federal income taxes.

  • Some states have a progressive tax system, similar to the federal income tax system, while others tax income at a flat rate or have no state-level tax.

  • State income tax returns are typically due the same day as your federal return, but there are exceptions.

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State income tax rates receive relatively little attention compared with federal income taxes, but they can still put a large dent in your wallet. How large depends on the amount you earn, as well as where you live and work. Here's how it works, and a list of state tax rates across the U.S.

» Jump to the rates: 2023 income tax rates by state

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What is a state income tax?

A state income tax is a tax on income earned in that state. It is similar to a federal income tax, but state income tax generally funds state budgets rather than the federal government.

Some states have a progressive tax, while others have a flat tax. Nine states do not levy a state income tax at all.

» MORE: Try our free tax calculator

How state income tax rates work

If you live and work in the same state, you probably need to file only one state return each year if applicable. But if you moved to another state during the year, lived in one state but worked in another, or have, say, income-producing rental properties in multiple states, you might need to file more than one.

And because the price of most tax software packages includes preparation and filing for only one state, filing multiple state income tax returns often means paying extra.

When are state income tax returns due?

State income tax return deadlines usually mirror the federal deadline, but exceptions exist. Residents of Virginia, for example, generally get until May 1 to file their state returns. Check with your state's tax and revenue authority for further information.

People who live in areas that were impacted by a federally declared disaster may also get more time for their federal tax returns

.

Types of state income tax

In general, states take one of three approaches to taxing residents and/or workers:

1. States with no income tax

Nine states don’t have an income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. New Hampshire has a 5% tax on dividends and interest only, and Washington has a 7% tax on long-term capital gains over $250,000.

The idea of not having to pay state income taxes could give you the urge to throw everything in a U-Haul and head for Dallas, but property taxes, sales taxes or other taxes and fees might be higher in those states.

2. States with flat income tax rates

Several states try to keep things simple by applying the same tax rate to most income. Of course, what counts as “income” depends on the state. In New Hampshire, for example, regular income is generally not subject to state tax, but a flat tax rate applies to dividends and interest income. And some states apply their tax rates to taxable income, while others use adjusted gross income.

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3. States with progressive tax structures

Most states and the District of Columbia tax income much the way the federal government does: They tax higher levels of income at higher state income tax rates. State income tax rates tend to be lower than federal tax rates. Many range between 1% and 10%. Some states tax as little as 0% on the first few thousand dollars of income. High-tax states top out around 13%, and that’s often on top of property taxes, sales taxes, utility taxes, fuel taxes and whatever the taxpayer must send to the federal government.

2023 state income tax rates and brackets

The table below shows the tax rates and tax brackets in states with progressive tax structures and flat tax rate structures. It also lists states that do not levy an income tax.

For states with progressive tax systems, note that the dollar amounts in the income brackets apply to single filers; in many states, the income brackets double for joint returns. And, as is the case for federal returns, the amount you’ll pay to your state is also a function of your filing status, whether you have dependents, and whether you qualify for tax deductions and credits.

2023 tax rates by state

These state income tax rates apply to income earned in 2023, which is reported on tax returns filed in 2024.

State

Tax rates

# of brackets

Lowest and highest tax bracket (income)

Alabama

2%-5%.

3.

$500-$3,001.

Alaska

Does not have state income tax.

Arizona

2.5%.

Flat rate.

Arkansas

0%-4.7%.

5.

$5,100-$87,000.

4.4%.

Flat rate.

1%-12.3%.

9.

$10,099-$677,275.

Connecticut

3%-6.99%.

7.

$10,000-$500,000.

Delaware

0%-6.6%.

7.

$2,000-$60,001.

District of Columbia

4%-10.75%.

7.

$10,000-$1,000,000.

Does not have state income tax.

1%-5.75%.

6.

$750-$7,001.

Hawaii

1.4%-11%.

12.

$2,400-$200,000.

Idaho

5.8%.

Flat rate.

4.95%.

Flat rate.

Indiana

3.15%.

Flat rate.

Iowa

4.4%-6%.

4.

$6,000-$75,000.

Kansas

3.1%-5.7%.

3.

$15,000-$30,000.

Kentucky

4.5%.

Flat rate.

Louisiana

1.85%-4.25%.

3.

$12,500-$50,001.

Maine

5.8%-7.15%.

3.

$24,500-$58,050.

Maryland

2%-5.75%.

8.

$1,000-$250,000.

5%-9%.

2

$8,000–$1,000,000.

Michigan

4.05%.

Flat rate.

Minnesota

5.35%-9.85%.

4.

$30,070-$183,341.

Mississippi

0%-5%.

2.

$10,001 and over is subject to a 5% flat rate.

Missouri

0%-4.95%.

8

$1,207-$8,449.

Montana

1%-6.75%

7.

$3,600-$21,600.

Nebraska

2.46%-6.64%.

4.

$3,700-$35,730.

Nevada

Does not have state income tax.

New Hampshire

Does not have state income tax.

4% flat tax on dividends and interest income only.

New Jersey

1.4%-10.75%.

7.

$20,000-$1,000,000.

New Mexico

1.7%-5.9%.

5.

$5,500-$210,000.

4%-10.9%.

9.

$8,500-$25,000,000.

North Carolina

4.75%.

Flat rate.

North Dakota

0%-2.5%.

3.

$44,775-$225,975.

0%-3.75%.

4.

$26,050-$115,300.

Oklahoma

0.25%-4.75%.

6.

$1,000-$7,200.

Oregon

4.75%-9.9%.

4.

$4,050-$125,000.

Pennsylvania

3.07%.

Flat rate.

Rhode Island

3.75%-5.99%.

3.

$73,450-$166,950.

South Carolina

0%-6.4%.

3.

$3,200-$16,040.

South Dakota

Does not have state income tax.

Tennessee

Does not have state income tax.

Texas

Does not have state income tax.

Utah

4.65%.

Flat rate.

Vermont

3.35%-8.75%.

4.

$45,400-$229,500.

2%-5.75%.

4.

$3,000-$17,001.

Washington

Does not have state income tax.

7% long-term capital gains tax on profits of $250,000 or more.

West Virginia

2.36%-5.12%.

5.

$10,000-$60,000.

Wisconsin

3.5%-7.65%.

4.

$13,810-$304,170.

Wyoming

Does not have state income tax.

Source: The Federation of Tax Administrators.

To learn more about how your state income tax rates work, visit the website of your state’s taxation and revenue department, or the Federation of Tax Administrators.

» Many states also charge sales tax on goods and services: Calculate your state sales tax

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Past years' state tax rates

Curious how state income tax brackets and rates have changed over the years? Take a look back.

State

Tax rates

# of brackets

Lowest and highest tax bracket (income)

Alabama

2%-5%.

3.

$500-$3,001.

Alaska

Does not have state income tax.

2.55%-2.98%.

2.

$28,653-$57,306.

Arkansas

2.0%-5.5%.

3.

$4,300-$8,501.

1%-12.3%.

9.

$10,099-$677,276.

4.4%.

Flat rate.

Connecticut

3%-6.99%.

7.

$10,000-$500,000.

Delaware

0%-6.6%.

7.

$2,000-$60,001.

District of Columbia

4%-9.75%.

6.

$10,000-$1,000,000.

Does not have state income tax.

1%-5.75%.

6.

$750-$7,001.

Hawaii

1.4%-11%.

12.

$2,400-$200,000.

Idaho

1.125%-6.5%.

5.

$1,568-$7,939.

4.95%.

Flat rate.

Indiana

3.23%.

Flat rate.

Iowa

0.33%-8.53%.

9.

$1,743-$78,435.

Kansas

3.1%-5.7%

3.

$15,000-$30,000.

Kentucky

5%.

Flat rate.

Louisiana

1.85%-4.25%.

3.

$12,500-$50,001.

Maine

5.8%-7.15%.

3.

$23,000-$54,450.

Maryland

2%-5.75%.

8.

$1,000-$250,000.

5%

Flat rate.

Michigan

4.25%.

Flat rate.

Minnesota

5.35%-9.85%.

4.

$28,080-$171,221.

Mississippi

0%-5%.

3.

$5,000-$10,001.

Missouri

1.5%-5.3%.

9.

$1,121-$8,968.

Montana

1%-6.75%.

7.

$2,900-$17,400.

Nebraska

2.46%-6.84%.

4.

$3,340-$32,210.

Nevada

Does not have state income tax.

New Hampshire

5%.

Flat tax on dividends and interest income only.

New Jersey

1.4%-10.75%.

7.

$20,000-$1,000,000.

New Mexico

1.7%-5.9%.

5.

$5,500-$210,000.

4%-10.9%

9.

$8,500-$25,000,000.

North Carolina

4.99%.

Flat rate.

North Dakota

1.1%-2.9%.

5.

$41,775-$458,350.

0%-3.99%.

5.

$25,000-$110,650.

Oklahoma

0.25%-4.75%.

6.

$1,000-$7,200.

Oregon

4.75%-9.9%

4.

$3,750-$125,000.

Pennsylvania

3.07%.

Flat rate.

Rhode Island

3.75%-5.99%.

3.

$68,200-$155,050.

South Carolina

0%-7%.

6.

$3,110-$15,560.

South Dakota

Does not have state income tax.

Tennessee

Does not have state income tax.

Texas

Does not have state income tax.

Utah

4.85%.

Flat rate.

Vermont

3.35%-8.75%.

4.

$42,150-$213,150.

2%-5.75%.

4.

$3,000-$17,001.

Washington

Does not have state income tax.

West Virginia

3%-6.5%.

5.

$10,000-$60,000.

Wisconsin

3.54%-7.65%.

4.

$12,760-$280,950.

Wyoming

Does not have state income tax.

Source: The Federation of Tax Administrators.

State

Tax rates

# of brackets

Lowest and Highest Tax Bracket Starting Points (Income)

Alabama

2%-5%

3

$500-$3,001

Arizona

2.59%-8%

4

$27,272-$163,633

Arkansas

2.0%-5.9%

3

$4,000-$79,300

California

1%-13.3%

9

$8,932-$599,012

Connecticut

3%-6.99%

7

$10,000-$500,000

Delaware

0%-6.6%

7

$2,000-$60,001

District of Columbia

4%-8.95%

6

$10,000-$1,000,000

Georgia

1%-5.75%

6

$750-$7,001

Hawaii

1.4%-11%

12

$2,400-$200,000

Idaho

1.125%-6.925%

7

$1,568-$11,760

Iowa

0.33%-8.53%

9

$1,676-$75,420

Kansas

3.1%-5.7%

3

$15,000-$30,000

Louisiana

2%-6%

3

$12,500-$50,001

Maine

5.8%-7.15%

3

$22,450-$53,150

Maryland

2%-5.75%

8

$1,000-$250,000

Minnesota

5.35%-9.85%

4

$27,230-$166,041

Mississippi

3%-5%

3

$5,000-$10,001

Missouri

1.5%-5.4%

9

$1,088-$8,704

Montana

1%-6.9%

7

$3,100-$18,800

Nebraska

2.46%-6.84%

4

$3,340-$32,210

New Jersey

1.4%-10.75%

7

$20,000-$1,000,000

New Mexico

1.7%-5.9%

4

$5,500-$210,000

New York

4%-8.82%

8

$8,500-$1,077,550

North Dakota

1.1%-2.9%

5

$40,525-$445,000

Ohio

0%-4.797%

6

$22,150-$221,300

Oklahoma

0.5%-5%

6

$1,000-$7,200

Oregon

4.75%-9.9%

4

$3,650-$125,000

Rhode Island

3.75%-5.99%

3

$66,200-$150,550

South Carolina

0%-7%

6

$3,110-$15,560

Vermont

3.35%-8.75%

4

$40,350-$204,000

Virginia

2%-5.75%

4

$3,000-$17,001

West Virginia

3%-6.5%

5

$10,000-$60,000

Wisconsin

3.54%-7.65%

4

$12,120-$266,930

Source: Federation of Tax Administrators

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