Quick Tax Quiz: Which states enacted the first and second state-level individual income taxes?
The correct answer is B: Hawaii in 1901 and Wisconsin in 1911.
Hawaii and Wisconsin were followed by Mississippi (1912), Oklahoma (1915), Massachusetts (1916) and Virginia (1916). It wasn’t until the 1970s that Rhode Island (1971), Ohio (1971), Pennsylvania (1971), and New Jersey (1976) began taxing individual income. Connecticut did not start taxing individual income until 1991, although it had taxed capital gains and dividends prior to that date.
For a chart showing the years of enactment of major taxes in each state, click here. (Note: Alaska has suspended its gasoline tax through August 31, 2009.)