(Click on the map to enlarge it. Reposting policy)
This map presents top individual income taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. rates in each state for 2014. Income taxes are a major, and often complicated, component of state revenues. Furthermore, unlike sales or excise taxAn excise tax is a tax imposed on a specific good or activity. Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and typically make up a relatively small and volatile portion of state and local and, to a lesser extent, federal tax collections. es which individuals pay indirectly, income taxes are levied directly on individuals, meaning that income taxes figure especially prominently in any discussion of tax burdens and public policies.
Income taxes are structured in many different ways throughout the states. Some are flat systems with one rate for all income, others offer progressive systems taxing different levels of income at different rates, while some states have no income tax at all. These taxes also change: since 2013, five states (Kansas, North Carolina, North Dakota, Ohio, and Wisconsin) reduced income taxes and one state (Minnesota) increased income taxes.
For the most up-to-date data available on current state tax rates and brackets, standard deductionThe standard deduction reduces a taxpayer’s taxable income by a set amount determined by the government. It was nearly doubled for all classes of filers by the 2017 Tax Cuts and Jobs Act as an incentive for taxpayers not to itemize deductions when filing their federal income taxes. s, and per-filer personal exemptions for individuals filing singly, see our report here.Share