Zerbor, Adobe Stock
February 17, 2021

State Individual Income Tax Rates and Brackets for 2021

Key Findings

  • 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.

Individual income taxes are a major source of state government revenue, accounting for 38 percent of state tax collections.[1] Their prominence in public policy considerations is further enhanced in that individuals are actively responsible for filing their income taxes, in contrast to the indirect payment of sales and excise taxes.

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. Kansas, for example, is one of several states imposing a three-bracket income tax system. At the other end of the spectrum, Hawaii has 12 brackets. Top marginal rates range from North Dakota’s 2.9 percent to California’s 13.3 percent.

In some states, a large number of brackets are clustered within a narrow income band. For example, Georgia’s taxpayers reach the state’s sixth and highest bracket at $7,000 in taxable income. In other states, the top rate kicks in at a much higher level of marginal income. For example, the top rate kicks in at $1 million or more in California (when the “millionaire’s tax” surcharge is included), as well as in New Jersey, New York, and the District of Columbia.

Table 1 shows how each state’s individual income tax is structured.

2021 State Individual Income Tax Structures
States with No Income Tax States with a Flat Income Tax States with a Graduated-rate Income Tax
Alaska Colorado Alabama
Florida Illinois Arizona
Nevada Indiana Arkansas
South Dakota Kentucky California
Tennessee Massachusetts Connecticut
Texas Michigan Delaware
Washington New Hampshire* Georgia
Wyoming North Carolina Hawaii
  Pennsylvania Idaho
Utah Iowa
  Kansas
Louisiana
Maine
Maryland
Minnesota
Mississippi
Missouri
Montana
Nebraska
New Jersey
New Mexico
New York
North Dakota
Ohio
Oklahoma
Oregon
Rhode Island
South Carolina
Vermont
Virginia
West Virginia 
Wisconsin 
District of Columbia

Note: *Applies to interest and dividends income only.

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

States’ approaches to income taxes vary in other details as well. Some states double their single filer bracket widths for married filers to avoid imposing a “marriage penalty.” Some states index tax brackets, exemptions, and deductions for inflation, while many others do not.[2] Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all.

The federal Tax Cuts and Jobs Act of 2017 (TCJA) increased the standard deduction (set at $12,550 for single filers and $25,100 for joint filers in 2021), while suspending the personal exemption by reducing it to $0 through 2025. Because many states use the federal tax code as the starting point for their own standard deduction and personal exemption calculations, some states that previously coupled to these provisions in the federal tax code have updated their conformity statutes in recent years to either adopt federal changes, retain their previous deduction and exemption amounts, or retain their own separate system but increase the state-provided deduction or exemption amounts.

In the following table, we provide the most up-to-date data available on state individual income tax rates, brackets, standard deductions, and personal exemptions for both single and joint filers.

Notable 2021 State Individual Income Tax Changes

Several states changed key features of their individual income tax codes going into tax year 2021. In addition, some states adopted legislation in 2020 that changed various individual income tax provisions and made those changes retroactive to the beginning of tax year 2020. Notable changes include the following:

  • In November 2020, Arizona voters adopted Proposition 208, which created an individual income tax surcharge of 3.5 percent for taxpayers with marginal income above $250,000 (single filers) or $500,000 (joint filers). This effectively creates a fifth individual income tax bracket, with revenue generated from the surcharge dedicated to education rather than the general fund. While Arizona’s first four individual income tax brackets are adjusted annually for inflation, the amount at which the surcharge kicks in will not be adjusted.[3]
  • Arkansas is unique among states in that it has three entirely different individual income tax rate schedules depending on a taxpayer’s total taxable income. As taxpayers’ incomes rise, they not only face higher marginal rates but also shift into an entirely different rate schedule. For taxpayers subject to the highest rate schedule, starting in tax year 2021, Arkansas’s top marginal rate has been reduced from 6.6 to 5.9 percent, which was accomplished by eliminating the top income tax bracket. This rate reduction is the result of a 2019 tax reform law that also reduced the top marginal corporate income tax rate, among other provisions.[4] In addition, beginning in tax year 2020, the state now offers a bracket adjustment providing a scaled deduction for taxpayers with income of more than $79,300 but less than or equal to $84,600.
  • Proposition 116, adopted by Colorado voters in November 2020, resulted in the permanent reduction of Colorado’s flat individual and corporate income tax rates from 4.63 to 4.55 percent, retroactive to the beginning of tax year 2020.[5]
  • Michigan is continuing to phase in an increase to its personal exemption under Senate Bill 748, which was adopted in 2018. For tax year 2021, Michigan’s personal exemption has increased to $4,900, up from $4,750 in 2020.[6]
  • In New Jersey, A10 was enacted in September 2020, expanding the state’s so-called “millionaire’s tax.” This law raised income taxes by reducing the kick-in for the state’s top marginal individual income tax rate. Previously, New Jersey’s top rate of 10.75 percent kicked in at $5 million in income for both single and joint filers, but now that rate kicks in at $1 million in income. This tax increase was retroactive to January 1, 2020.[7]
  • New Mexico’s top marginal individual income tax rate has permanently increased from 4.9 to 5.9 percent with the addition of a new bracket. This tax increase took effect as a result of a contingency clause in House Bill 6, enacted in April 2019, which specified that the new bracket would take effect starting in 2021 if revenues for fiscal year 2020 did not exceed revenues for fiscal year 2019 by at least 5 percent.[8]
  • New York is continuing to phase in a reduction to its fifth and sixth marginal individual income tax rates. This year, the fifth rate dropped from 6.09 to 5.97 percent, and the sixth rate dropped from 6.41 to 6.33 percent.[9]
  • Starting this year, Tennessee has joined seven other states that do not levy any individual income tax. The Hall Tax, which previously taxed interest and dividend income but not wage income, was phased out by one percentage point per year, dropping from 6 percent in 2015 to 1 percent by 2020. As of 2021, the tax is no longer levied.[10]

2021 state income tax rates. 2021 state individual income tax rates. States with no income tax. 2021 top state marginal individual income tax rates

2021 State Income Tax Rates and Brackets
State Individual Income Tax Rates and Brackets, 2021
  Single Filer Married Filing Jointly Standard Deduction Personal Exemption
State Rates   Brackets Rates   Brackets Single Couple Single Couple Dependent
Alabama (a, b, c) 2.00% > $0 2.00% > $0 $2,500 $7,500 $1,500 $3,000 $1,000
  4.00% > $500 4.00% > $1,000          
  5.00% > $3,000 5.00% > $6,000          
Alaska none none n.a. n.a. n.a. n.a. n.a.
Arizona (d, f, g, w, pp) 2.59% > $0 2.59% > $0 $12,550 $25,100 n.a. n.a. $100 credit
  3.34% > $27,272 3.34% > $54,544          
  4.17% > $54,544 4.17% > $109,088          
  4.50% > $163,632 4.50% > $327,263          
  8.00% > $250,000 8.00% > $500,000          
Arkansas (h, i, o, dd, oo) 2.00% > $0 2.00% > $0 $2,200 $4,400 $29 credit $58 credit $29 credit
  4.00% > $4,000 4.00% > $4,000          
  5.90% > $8,000 5.90% > $8,000          
California (a, i, k, l, m, n, o) 1.00% > $0 1.00% > $0 $4,601 $9,202 $124 credit $248 credit $383 credit
  2.00% > $8,932 2.00% > $17,864          
  4.00% > $21,175 4.00% > $42,350          
  6.00% > $33,421 6.00% > $66,842          
  8.00% > $46,394 8.00% > $92,788          
  9.30% > $58,634 9.30% > $117,268          
  10.30% > $299,508 10.30% > $599,016          
  11.30% > $359,407 11.30% > $718,814          
  12.30% > $599,012 12.30% > $1,000,000          
  13.30% > $1,000,000 13.30% > $1,198,024          
Colorado (a, p) 4.55% > $0 4.55% > $0 $12,550 $25,100 n.a. n.a. n.a.
Connecticut (j, q, r, s) 3.00% > $0 3.00% > $0 n.a. n.a. $15,000 $24,000 $0
  5.00% > $10,000 5.00% > $20,000          
  5.50% > $50,000 5.50% > $100,000          
  6.00% > $100,000 6.00% > $200,000          
  6.50% > $200,000 6.50% > $400,000          
  6.90% > $250,000 6.90% > $500,000          
  6.99% > $500,000 6.99% > $1,000,000          
Delaware (a, i, n, t) 2.20% > $2,000 2.20% > $2,000 $3,250 $6,500 $110 credit $220 credit $110 credit
  3.90% > $5,000 3.90% > $5,000          
  4.80% > $10,000 4.80% > $10,000          
  5.20% > $20,000 5.20% > $20,000          
  5.55% > $25,000 5.55% > $25,000          
  6.60% > $60,000 6.60% > $60,000          
Florida none none n.a. n.a. n.a. n.a. n.a.
Georgia (u) 1.00% > $0 1.00% > $0 $4,600 $6,000 $2,700 $7,400 $3,000
  2.00% > $750 2.00% > $1,000          
  3.00% > $2,250 3.00% > $3,000          
  4.00% > $3,750 4.00% > $5,000          
  5.00% > $5,250 5.00% > $7,000          
  5.75% > $7,000 5.75% > $10,000          
Hawaii (n, v) 1.40% > $0 1.40% > $0 $2,200 $4,400 $1,144 $2,288 $1,144
  3.20% > $2,400 3.20% > $4,800          
  5.50% > $4,800 5.50% > $9,600          
  6.40% > $9,600 6.40% > $19,200          
  6.80% > $14,400 6.80% > $28,800          
  7.20% > $19,200 7.20% > $38,400          
  7.60% > $24,000 7.60% > $48,000          
  7.90% > $36,000 7.90% > $72,000          
  8.25% > $48,000 8.25% > $96,000          
  9.00% > $150,000 9.00% > $300,000          
  10.00% > $175,000 10.00% > $350,000          
  11.00% > $200,000 11.00% > $400,000          
Idaho (k, n, w) 1.125% > $0 1.125% > $0 $12,550 $25,100 n.a. n.a. n.a.
  3.125% > $1,568 3.125% > $3,136          
  3.625% > $3,136 3.625% > $6,272          
  4.625% > $4,704 4.625% > $9,408          
  5.625% > $6,272 5.625% > $12,544          
  6.625% > $7,840 6.625% > $15,680          
  6.925% > $11,760 6.925% > $23,520          
Illinois (n, o, x) 4.95% > $0 4.95% > $0 n.a. n.a. $2,325 $4,650 $2,325
Indiana (a, n, y) 3.23% > $0 3.23% > $0 n.a. n.a. $1,000 $2,000 $1,000
Iowa (a, b, e, i, dd) 0.33% > $0 0.33% > $0 $2,130 $5,240 $40 credit $80 credit $40 credit
  0.67% > $1,676 0.67% > $1,676          
  2.25% > $3,352 2.25% > $3,352          
  4.14% > $6,704 4.14% > $6,704          
  5.63% > $15,084 5.63% > $15,084          
  5.96% > $25,140 5.96% > $25,140          
  6.25% > $33,520 6.25% > $33,520          
  7.44% > $50,280 7.44% > $50,280          
  8.53% > $75,420 8.53% > $75,420          
Kansas (a, n) 3.10% > $0 3.10% > $0 $3,000 $7,500 $2,250 $4,500 $2,250
  5.25% > $15,000 5.25% > $30,000          
  5.70% > $30,000 5.70% > $60,000          
Kentucky (a, e) 5.00% > $0 5.00% > $0 $2,690 $5,380 n.a. n.a. n.a.
Louisiana (b, z) 2.00% > $0 2.00% > $0 n.a. n.a. $4,500 $9,000 $1,000
  4.00% > $12,500 4.00% > $25,000          
  6.00% > $50,000 6.00% > $100,000          
Maine (w, aa, dd) 5.80% > $0 5.80% > $0 $12,550 $25,100 $4,300 $8,600 $300 credit
  6.75% > $22,450 6.75% > $44,950          
  7.15% > $53,150 7.15% > $106,350          
Maryland (a, n, o, bb, cc) 2.00% > $0 2.00% > $0 $2,300 $4,650 $3,200 $6,400 $3,200
  3.00% > $1,000 3.00% > $1,000          
  4.00% > $2,000 4.00% > $2,000          
  4.75% > $3,000 4.75% > $3,000          
  5.00% > $100,000 5.00% > $150,000          
  5.25% > $125,000 5.25% > $175,000          
  5.50% > $150,000 5.50% > $225,000          
  5.75% > $250,000 5.75% > $300,000          
Massachusetts 5.00% > $0 5.00% > $0 n.a. n.a. $4,400 $8,800 $1,000
Michigan (a, n) 4.25% > $0 4.25% > $0 n.a. n.a. $4,900 $9,800 $4,900
Minnesota (e, dd, ee) 5.35% > $0 5.35% > $0 $12,525 $25,050 n.a. n.a. $4,350
  6.80% > $27,230 6.80% > $39,810          
  7.85% > $89,440 7.85% > $158,140          
  9.85% > $166,040 9.85% > $276,200          
Mississippi 3.00% > $4,000 3.00% > $4,000 $2,300 $4,600 $6,000 $12,000 $1,500
  4.00% > $5,000 4.00% > $5,000          
  5.00% > $10,000 5.00% > $10,000          
Missouri (a, b, k, n, w)   1.50% > $107 1.50% > $107 $12,550 $25,100 n.a n.a n.a
  2.00% > $1,073 2.00% > $1,073          
  2.50% > $2,146 2.50% > $2,146          
  3.00% > $3,219 3.00% > $3,219          
  3.50% > $4,292 3.50% > $4,292          
  4.00% > $5,365 4.00% > $5,365          
  4.50% > $6,438 4.50% > $6,438          
  5.00% > $7,511 5.00% > $7,511          
  5.40% > $8,584 5.40% > $8,584          
Montana (b, k, o, ff) 1.00% > $0 1.00% > $0 $4,790 $9,580 $2,560 $5,120 $2,560
  2.00% > $3,100 2.00% > $3,100          
  3.00% > $5,500 3.00% > $5,500          
  4.00% > $8,400 4.00% > $8,400          
  5.00% > $11,300 5.00% > $11,300          
  6.00% > $14,500 6.00% > $14,500          
  6.90% > $18,700 6.90% > $18,700          
Nebraska (e, i, n, dd) 2.46% > $0 2.46% > $0 $7,100 $14,200 $142 credit $284 credit $142 credit
  3.51% > $3,340 3.51% > $6,660          
  5.01% > $19,990 5.01% > $39,990          
  6.84% > $32,210 6.84% > $64,430          
Nevada none none n.a. n.a. n.a. n.a. n.a.
New Hampshire (gg) 5.00% > $0 5.00% > $0 n.a n.a $2,400 $4,800 n.a.
New Jersey (a) 1.400% > $0 1.400% > $0 n.a. n.a. $1,000 $2,000 $1,500
  1.750% > $20,000 1.750% > $20,000          
  3.500% > $35,000 2.450% > $50,000          
  5.525% > $40,000 3.500% > $70,000          
  6.370% > $75,000 5.525% > $80,000          
  8.970% > $500,000 6.370% > $150,000          
  10.750% > $1,000,000 8.970% > $500,000          
        10.750% > $1,000,000          
New Mexico (n, nn) 1.70% > $0 1.70% > $0 $12,550 $25,100 n.a. n.a. $4,000
  3.20% > $5,500 3.20% > $8,000          
  4.70% > $11,000 4.70% > $16,000          
  4.90% > $16,000 4.90% > $24,000          
  5.90% > $210,000 5.90% > $315,000          
New York (a, j) 4.00% > $0 4.00% > $0 $8,000 $16,050 n.a. n.a. $1,000
  4.50% > $8,500 4.50% > $17,150          
  5.25% > $11,700 5.25% > $23,600          
  5.90% > $13,900 5.90% > $27,900          
  5.97% > $21,400 5.97% > $43,000          
  6.33% > $80,650 6.33% > $161,550          
  6.85% > $215,400 6.85% > $323,200          
  8.82% > $1,077,550 8.82% > $2,155,350          
North Carolina 5.25% > $0 5.25% > $0 $10,750 $21,500 n.a. n.a. n.a.
North Dakota (k, p, w) 1.10% > $0 1.10% > $0 $12,550 $25,100 n.a. n.a. n.a.
  2.04% > $40,125 2.04% > $67,050          
  2.27% > $97,150 2.27% > $161,950          
  2.64% > $202,650 2.64% > $246,700          
  2.90% > $440,600 2.90% > $440,600          
Ohio (a, k, o, hh) 2.850% > $22,150 2.850% > $22,150 n.a. n.a. $2,400 $4,800 $2,400
  3.326% > $44,250 3.326% > $44,250          
  3.802% > $88,450 3.802% > $88,450          
  4.413% > $110,650 4.413% > $110,650          
  4.797% > $221,300 4.797% > $221,300          
Oklahoma (n)  0.50% > $0 0.50% > $0 $6,350 $12,700 $1,000 $2,000 $1,000
  1.00% > $1,000 1.00% > $2,000          
  2.00% > $2,500 2.00% > $5,000          
  3.00% > $3,750 3.00% > $7,500          
  4.00% > $4,900 4.00% > $9,800          
  5.00% > $7,200 5.00% > $12,200          
Oregon (a, b, i, n, o, ii, dd) 4.75% > $0 4.75% > $0 $2,315 $4,630 $210 credit $420 credit $210 credit
  6.75% > $3,650 6.75% > $7,300          
  8.75% > $9,200 8.75% > $18,400          
  9.90% > $125,000 9.90% > $250,000          
Pennsylvania (a) 3.07% > $0 3.07% > $0 n.a. n.a. n.a. n.a. n.a.
Rhode Island (e, dd, jj) 3.75% > $0 3.75% > $0 $9,050 $18,100 $4,250 $8,500 $4,250
  4.75% > $66,200 4.75% > $66,200          
  5.99% > $150,550 5.99% > $150,550          
South Carolina (k, o, p, w) 0.00% > $0 0.00% > $0 $12,550 $25,100 n.a. n.a. $4,260
  3.00% > $3,070 3.00% > $3,070          
  4.00% > $6,150 4.00% > $6,150          
  5.00% > $9,230 5.00% > $9,230          
  6.00% > $12,310 6.00% > $12,310          
  7.00% > $15,400 7.00% > $15,400          
South Dakota none none n.a. n.a. n.a. n.a. n.a.
Tennessee none none n.a. n.a. n.a. n.a. n.a.
Texas none none n.a. n.a. n.a. n.a. n.a.
Utah (i, 0, kk) 4.95% > $0 4.95% > $0 $753 credit $1,506 credit n.a. n.a. $590 credit
Vermont (k, o, ll) 3.35% > $0 3.35% > $0 $6,250 $12,500 $4,350 $8,700 $4,350
  6.60% > $40,350 6.60% > $67,450          
  7.60% > $97,800 7.60% > $163,000          
  8.75% > $204,000 8.75% > $248,350          
Virginia (n) 2.00% > $0 2.00% > $0 $4,500 $9,000 $930 $1,860 $930
  3.00% > $3,000 3.00% > $3,000          
  5.00% > $5,000 5.00% > $5,000          
  5.75% > $17,000 5.75% > $17,000          
Washington none none n.a. n.a. n.a. n.a. n.a.
West Virginia (a, n) 3.00% > $0 3.00% > $0 n.a. n.a. $2,000 $4,000 $2,000
  4.00% > $10,000 4.00% > $10,000          
  4.50% > $25,000 4.50% > $25,000          
  6.00% > $40,000 6.00% > $40,000          
  6.50% > $60,000 6.50% > $60,000          
Wisconsin (n, o, dd, mm) 3.54% > $0 3.54% > $0 $11,050 $20,470 $700 $1,400 $700
  4.65% > $12,120 4.65% > $16,160          
  6.27% > $24,250 6.27% > $32,330          
  7.65% > $266,930 7.65% > $355,910          
Wyoming none none n.a. n.a. n.a. n.a. n.a.
Washington, D.C. (w) 4.00% > $0 4.00% > $0 $12,550 $25,100 n.a. n.a. n.a.
  6.00% > $10,000 6.00% > $10,000          
  6.50% > $40,000 6.50% > $40,000          
  8.50% > $60,000 8.50% > $60,000          
  8.75% > $350,000 8.75% > $350,000          
  8.95% > $1,000,000 8.95% > $1,000,000          

(a) Local income taxes are excluded. Eleven states have county- or city-level income taxes; the average rates expressed as a percentage of AGI within each jurisdiction are: 0.10% in Alabama; 0.36% in Indiana; 0.11% in Iowa; 1.29% in Kentucky; 2.18% in Maryland; 0.17% in Michigan; 0.22% in Missouri; 1.47% in New York; 1.59% in Ohio; and 1.15% in Pennsylvania. Data are not available in Delaware, where Wilmington imposes a municipal income tax. In California, Colorado, Kansas, New Jersey, Oregon, and West Virginia, some jurisdictions have payroll taxes, flat-rate wage taxes, or interest and dividend income taxes. See Jared Walczak, “Local Income Taxes in 2019,” Tax Foundation, July 30, 2019, https://taxfoundation.org/local-income-taxes-2019/.  

(b) These states allow some or all of federal income tax paid to be deducted from state taxable income.

(c) For single taxpayers with AGI below $23,500, the standard deduction is $2,500. This standard deduction amount is reduced by $25 for every additional $500 of AGI, not to fall below $2,000. For Married Filing Joint (MFJ) taxpayers with AGI below $23,500, the standard deduction is $7,500. This standard deduction amount is reduced by $175 for every additional $500 of AGI, not to fall below $4,000. For all taxpayers with AGI of $20,000 or less and claiming a dependent, the dependent exemption is $1,000. This amount is reduced to $500 per dependent for taxpayers with AGI above $20,000 and equal to or less than $100,000. For taxpayers with more than $100,000 in AGI, the dependent exemption is $300 per dependent.

(d) Statutory rates and brackets for 2021 are shown. Brackets are adjusted annually for inflation, but 2021 inflation adjustments were not available as of publication, so inflation-adjusted amounts for tax year 2020 are shown.

(e) Standard deduction and/or personal exemption is adjusted annually for inflation. Inflation-adjusted amounts for tax year 2021 are shown.

(f) Arizona’s standard deduction can be adjusted upward by an amount equal to 25 percent of the amount the taxpayer would have claimed in charitable deductions if the taxpayer had claimed itemized deductions.

(g) In lieu of a dependent exemption, Arizona offers a child tax credit of $100 per dependent under the age of 17 and $25 per dependent age 17 and older. The credit begins to phase out for taxpayers with federal adjusted gross income (FAGI) above $200,000 (single filers) or $400,000 (MFJ).

(h) Rates apply to individuals earning more than $79,300. Two special tax tables exist for low- and middle-income individuals: one for individuals with below $22,200 in income, and one for those with income greater than or equal to $22,200 but less than or equal to $79,300.

(i) Standard deduction or personal exemption is structured as a tax credit.

(j) Connecticut and New York have “tax benefit recapture,” by which many high-income taxpayers pay their top tax rate on all income, not just on amounts above the benefit threshold.

(k) Bracket levels adjusted for inflation each year. Inflation-adjusted bracket widths for 2021 were not available as of publication, so table reflects 2020 inflation-adjusted bracket widths.

(l) Exemption credits phase out for single taxpayers by $6 for each $2,500 of federal AGI above $203,341 and for MFJ filers by $12 for each $2,500 of federal AGI above $406,687. The credit cannot be reduced to below zero.

(m) Rates include the additional tax at the rate of 1 percent on taxable income in excess of $1 million.

(n) State provides a state-defined personal exemption amount for each exemption available and/or deductible under the Internal Revenue Code. Under the Tax Cuts and Jobs Act, the personal exemption is set at $0 until 2026 but not eliminated. Because it is still available, these state-defined personal exemptions remain available in some states but are set to $0 in other states.

(o) Standard deduction and/or personal exemption adjusted annually for inflation, but the 2021 inflation adjustment was not available at time of publication, so table reflects actual 2020 amount(s).

(p) Colorado, North Dakota, and South Carolina include the federal standard deduction in their income starting point.

(q) Connecticut has a complex set of phaseout provisions. For each single taxpayer whose Connecticut AGI exceeds $56,500, the amount of the taxpayer’s Connecticut taxable income to which the 3 percent tax rate applies shall be reduced by $1,000 for each $5,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds said amount. Any such amount will have a tax rate of 5 percent instead of 3 percent. Additionally, each single taxpayer whose Connecticut AGI exceeds $200,000 shall pay an amount equal to $90 for each $5,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds $200,000 but is less than $500,000, and by an additional $50 for each $5,000, or fraction thereof, by which the taxpayer’s AGI exceeds $500,000, up to a maximum payment of $3,150. For each MFJ taxpayer whose Connecticut AGI exceeds $100,500, the amount of the taxpayer’s Connecticut taxable income to which the 3 percent tax rate applies shall be reduced by $2,000 for each $5,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds said amount. Any such amount of Connecticut taxable income to which, as provided in the preceding sentence, the 3 percent tax rate does not apply shall be an amount to which the 5 percent tax rate shall apply. Each MFJ taxpayer whose Connecticut AGI exceeds $400,000 shall pay, in addition to the amount above, an amount equal to $180 for each $10,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds $400,000, up to a maximum of $5,400, and a further $100 for each $10,000, or fraction thereof, by which Connecticut AGI exceeds $1 million, up to a combined maximum payment of $6,300.

(r) Connecticut taxpayers are also given personal tax credits (1-75%) based upon adjusted gross income.

(s) Connecticut’s personal exemption phases out by $1,000 for each $1,000, or fraction thereof, by which a single filer’s Connecticut AGI exceeds $30,000 and a MFJ filer’s Connecticut AGI exceeds $48,000.

(t) In addition to the personal income tax rates, Delaware imposes a tax on lump-sum distributions.

(u) Ga. Code Ann. §48-7-20(b) provides that Georgia’s top marginal individual income tax rate will be reduced to 5.5 percent for tax years beginning January 1, 2020 or later, and expiring on December 31, 2025, if a joint resolution to reduce the rate is ratified by both chambers of the General Assembly and the governor on or after Jan. 13, 2020. As of this writing, no such resolution has been adopted, so the top marginal individual income tax rate remains at 5.75 percent.

(v) Additionally, Hawaii allows any taxpayer, other than a corporation, acting as a business entity in more than one state and required by law to file a return, to report and pay a tax of 0.5 percent of its annual gross sales (1) where the taxpayer’s only activities in Hawaii consist of sales, (2) when the taxpayer does not own or rent real estate or tangible personal property, and (3) when the taxpayer’s annual gross sales in or into Hawaii do not exceed $100,000. Haw. Rev. Stat. § 235-51 (2015).

(w) Deduction and/or exemption tied to federal tax system. Federal deductions and exemptions are indexed for inflation, and where applicable, the tax year 2021 inflation-adjusted amounts are shown. 

(x) As of June 1, 2017, taxpayers cannot claim the personal exemption if their adjusted gross income exceeds $250,000 (single filers) or $500,000 (MFJ).

(y) $1,000 is a base exemption. If dependents meet certain conditions, filers can take an additional $1,500 exemption for each.

(z) Standard deduction and personal exemptions are combined: $4,500 for single and married filing separately; $9,000 MFJ and head of household.

(aa) Maine’s dependent personal exemption is structured as a tax credit and begins to phase out for taxpayers with income exceeding $200,000 (head of household) or $400,000 (married filing jointly).

(bb) The standard deduction is 15 percent of income with a minimum of $1,550 and a cap of $2,300 for single filers and married filing separately filers. The standard deduction is a minimum of $3,100 and capped at $4,650 for MFJ filers, head of household filers, and qualifying widows/ widowers. The minimum and maximum standard deduction amounts are adjusted annually for inflation. 2021 inflation-adjusted amounts were not announced as of publication, so 2020 inflation-adjusted amounts are shown.

(cc) The exemption amount has the following phaseout schedule: If AGI is above $100,000 for single filers and above $150,000 for married filers, the $3,200 exemption begins to be phased out. If AGI is above $150,000 for single filers and above $200,000 for married filers, the exemption is phased out entirely.

(dd) Bracket levels adjusted for inflation each year. Inflation-adjusted bracket levels for 2021 are shown. 

(ee) For taxpayers whose AGI exceeds $99,925 (married filing separately) or $199,850 (all other filers), Minnesota’s standard deduction is reduced by the lesser of 3 percent of the excess of the taxpayer’s federal AGI over the applicable amount or 80 percent of the standard deduction otherwise allowable. 

(ff) Montana filers’ standard deduction is 20 percent of AGI. For single taxpayers, the deduction must be between $2,130 and $4,790. For joint taxpayers, the deduction must be between $4,260 and $9,580.

(gg) Applies to interest and dividend income only.

(hh) Ohio’s personal and dependent exemptions are $2,400 for an AGI of $40,000 or less, $2,150 if AGI is more than $40,000 but less than or equal to $80,000, and $1,900 if AGI is greater than $80,000.

(ii) The personal exemption credit is not allowed if federal AGI exceeds $100,000 for single filers or $200,000 for MFJ.

(jj) The phaseout range for the standard deduction, personal exemption, and dependency exemption is $210,750-$234,750. For taxpayers with modified Federal AGI exceeding $234,750, no standard deduction, personal exemption, or dependency exemption is available.

(kk) The standard deduction is taken in the form of a nonrefundable credit of 6 percent of the federal standard or itemized deduction amount, excluding the deduction for state or local income tax. This credit phases out at 1.3 cents per dollar of AGI above $14,879 ($29,758 for married couples).

(ll) For taxpayers with federal AGI that exceeds $150,000, the taxpayer will pay the greater of state income tax or 3 percent of federal AGI.

(mm) The standard deduction begins to phase out at $16,000 in income for single filers and $23,000 in income for joint filers. The standard deduction phases out to zero at $108,000 for single filers and $126,499 for joint filers.

(nn) In lieu of the suspended personal exemption, New Mexico offers a deduction of $4,000 for all but one of a taxpayer’s dependents.

(oo) Taxpayers with income of more than $79,300 but less than or equal to $84,600 shall reduce the amount of tax due by deducting an additional amount equal to $40 for income exceeding $83,600 but less than or equal to $84,600, plus an additional $100 for every $1,000 by which income exceeds $79,300 but remains less than or equal to $83,600.

(pp) Rates shown include Arizona’s 3.5 percentage-point surcharge on marginal income above $250,000 (single filers) or $500,000 (joint filers). Unlike Arizona’s base income tax rate schedule, the surcharge threshold is not adjusted for inflation. The ballot measure that created the surcharge, Proposition 208, takes effect upon gubernatorial proclamation but is currently being challenged in court.

2015 – 2021 State Individual Income Tax Rates and Brackets 


Notes

[1] U.S. Census Bureau, “State & Local Government Finance,” Fiscal Year 2018, https://www.census.gov/data/datasets/2018/econ/local/public-use-datasets.html.

[2] See Jared Walczak, “Inflation Adjusting State Tax Codes: A Primer,” Tax Foundation, Oct. 29, 2019, https://taxfoundation.org/inflation-adjusting-state-tax-codes/.

[3] Janelle Cammenga and Jared Walczak, “Arizona Proposition 208 Threatens Arizona’s Status as a Destination for Interstate Migration,” Tax Foundation, Oct. 14, 2020, https://taxfoundation.org/arizona-proposition-208-education-funding/.

[4] Nicole Kaeding and Jeremy Horpedahl, “Recapping the 2019 Arkansas Tax Reform,” Tax Foundation, Apr. 11, 2019, https://taxfoundation.org/recapping-2019-arkansas-tax-reform/.

[5] Katherine Loughead, “Colorado Proposition 116: Will Voters Reduce the State Income Tax Rate?” Tax Foundation, Oct. 5, 2020, https://taxfoundation.org/colorado-proposition-116-state-income-tax/.

[6] Katherine Loughead, “State Individual Income Tax Rates and Brackets for 2020,” Tax Foundation, Feb. 4, 2020, https://taxfoundation.org/publications/state-individual-income-tax-rates-and-brackets/.

[7] Janelle Cammenga, “Seventh Time’s the Charm: New Jersey Passes Millionaires Tax,” Tax Foundation, Sept. 30, 2020, https://taxfoundation.org/new-jersey-millionaires-tax-fy-2021/.

[8] Katherine Loughead, “State Tax Changes Effective January 1, 2021,” Tax Foundation, Jan. 5, 2021, https://taxfoundation.org/2021-state-tax-changes/.

[9] Jared Walczak, “Taxes and New York’s Fiscal Crisis: Evaluating Revenue Proposals to Close the State’s Budget Gap,” Tax Foundation, Dec. 8, 2020, 30, https://taxfoundation.org/new-york-budget-gap-new-york-revenue-shortfall/.

[10] Katherine Loughead, “State Tax Changes Effective January 1, 2021.”

Banner image attribution: Zerbor, Adobe Stock

Was this page helpful to you?

No

Thank You!

The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?

Contribute to the Tax Foundation

The 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.

Itemized deductions allow individuals to subtract designated expenses from their taxable income and can be claimed in lieu of the standard deduction. Itemized deductions include those for state and local taxes, charitable contributions, and mortgage interest. An estimated 13.7 percent of filers itemized in 2019, most being high-income taxpayers. 

A marriage penalty is when a household’s overall tax bill increases due to a couple marrying and filing taxes jointly. A marriage penalty typically occurs when two individuals with similar incomes marry; this is true for both high- and low-income couples.

A payroll tax is a tax paid on the wages and salaries of employees to finance social insurance programs like Social Security, Medicare, and unemployment insurance. Payroll taxes are social insurance taxes that comprise 23.05 percent of combined federal, state, and local government revenue, the second largest source of that combined tax revenue.

An 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 make up a relatively small and volatile portion of state and local tax collections.

An individual income tax (or personal income tax) is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment. Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S.

A tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly.

Taxable income is the amount of income subject to tax, after deductions and exemptions. For both individuals and corporations, taxable income differs from—and is less than—gross income.