Download FISCAL FACT No. 422: State Income Tax Rates and Brackets 2014
Key Findings
- State 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. systems have significant variation in structure, rates, deductions, and exemptions, including 9 states with no income tax on wages and 8 with flat income taxes.
- North Carolina became a flat taxAn income tax is referred to as a “flat tax” when all taxable income is subject to the same tax rate, regardless of income level or assets. state, moving from three brackets to just one. Massachusetts, another flat tax state, reduced its rate slightly.
- Kansas, North Dakota, Ohio, and Wisconsin all made across-the-board income tax rate reductions relative to 2013 rates.
- Minnesota added a high-earner tax bracketA tax bracket is the range of incomes taxed at given rates, which typically differ depending on filing status. In a progressive individual or corporate income tax system, rates rise as income increases. There are seven federal individual income tax brackets; the federal corporate income tax system is flat. of 9.85 percent on income over $152,540 for single filers.
|
State Individual Income Tax Rates As of January 1, 2014 |
|||||
|
State |
Rates |
Brackets |
Standard Deduction |
Personal Exemption |
|
|
Alabama (e, f) |
2.00% |
> |
$0 |
$2,500 |
$1,500 |
|
4.00% |
> |
$500 |
|||
|
5.00% |
> |
$3,000 |
|||
|
Alaska |
No Income Tax |
||||
|
Arizona |
2.59% |
> |
$0 |
$4,945 |
$2,100 |
|
2.88% |
> |
$10,000 |
|||
|
3.36% |
> |
$25,000 |
|||
|
4.24% |
> |
$50,000 |
|||
|
4.54% |
> |
$150,000 |
|||
|
Arkansas (c, d) |
1.00% |
> |
$0 |
$2,000 |
$26 credit |
|
2.50% |
> |
$4,199 |
|||
|
3.50% |
> |
$8,299 |
|||
|
4.50% |
> |
$12,399 |
|||
|
6.00% |
> |
$20,699 |
|||
|
7.00% |
> |
$34,599 |
|||
|
California (a, d) |
1.00% |
> |
$0 |
$3,906 |
$106 credit |
|
2.00% |
> |
$7,582 |
|||
|
4.00% |
> |
$17,976 |
|||
|
6.00% |
> |
$28,371 |
|||
|
8.00% |
> |
$39,384 |
|||
|
9.30% |
> |
$49,774 |
|||
|
10.30% |
> |
$254,250 |
|||
|
11.30% |
> |
$305,100 |
|||
|
12.30% |
> |
$508,500 |
|||
|
13.30% |
> |
$1,000,000 |
|||
|
Colorado |
4.63% of federal taxable income |
||||
|
Connecticut |
3.00% |
> |
$0 |
N/A |
$14,000 |
|
5.00% |
> |
$10,000 |
|||
|
5.50% |
> |
$50,000 |
|||
|
6.00% |
> |
$100,000 |
|||
|
6.50% |
> |
$200,000 |
|||
|
6.70% |
> |
$250,000 |
|||
|
Delaware (f) |
2.20% |
> |
$2,000 |
$3,250 |
$110 credit |
|
3.90% |
> |
$5,000 |
|||
|
4.80% |
> |
$10,000 |
|||
|
5.20% |
> |
$20,000 |
|||
|
5.55% |
> |
$25,000 |
|||
|
6.60% |
> |
$60,000 |
|||
|
Florida |
No Income Tax |
||||
|
Georgia |
1.00% |
> |
$0 |
$2,300 |
$2,700 |
|
2.00% |
> |
$750 |
|||
|
3.00% |
> |
$2,250 |
|||
|
4.00% |
> |
$3,750 |
|||
|
5.00% |
> |
$5,250 |
|||
|
6.00% |
> |
$7,000 |
|||
|
Hawaii |
1.40% |
> |
$0 |
$2,200 |
$1,144 |
|
3.20% |
> |
$2,400 |
|||
|
5.50% |
> |
$4,800 |
|||
|
6.40% |
> |
$9,600 |
|||
|
6.80% |
> |
$14,400 |
|||
|
7.20% |
> |
$19,200 |
|||
|
7.60% |
> |
$24,000 |
|||
|
7.90% |
> |
$36,000 |
|||
|
8.25% |
> |
$48,000 |
|||
|
9.00% |
> |
$150,000 |
|||
|
10.00% |
> |
$175,000 |
|||
|
11.00% |
> |
$200,000 |
|||
|
Idaho (a, d) |
1.60% |
> |
$0 |
$6,200 |
$3,900 |
|
3.60% |
> |
$1,408 |
|||
|
4.10% |
> |
$2,817 |
|||
|
5.10% |
> |
$4,226 |
|||
|
6.10% |
> |
$5,635 |
|||
|
7.10% |
> |
$7,044 |
|||
|
7.40% |
> |
$10,567 |
|||
|
Illinois |
5% of federal adjusted gross income with modification |
$2,125 |
|||
|
Indiana (f) |
3.4% of federal adjusted gross income with modification |
$1,000 |
|||
|
Iowa (d, e) |
0.36% |
> |
$0 |
$1,900 |
$40 credit |
|
0.72% |
> |
$1,515 |
|||
|
2.43% |
> |
$3,030 |
|||
|
4.50% |
> |
$6,060 |
|||
|
6.12% |
> |
$13,635 |
|||
|
6.48% |
> |
$22,725 |
|||
|
6.80% |
> |
$30,300 |
|||
|
7.92% |
> |
$45,450 |
|||
|
8.98% |
> |
$68,175 |
|||
|
Kansas (f) |
2.70% |
> |
$0 |
$3,000 |
$2,250 |
|
4.80% |
> |
$15,000 |
|||
|
Kentucky (f) |
2.00% |
> |
$0 |
$2,360 |
$20 credit |
|
3.00% |
> |
$3,000 |
|||
|
4.00% |
> |
$4,000 |
|||
|
5.00% |
> |
$5,000 |
|||
|
5.80% |
> |
$8,000 |
|||
|
6.00% |
> |
$75,000 |
|||
|
Louisiana (e) |
2.00% |
> |
$0 |
$4,500 |
$1,000 |
|
4.00% |
> |
$12,500 |
|||
|
6.00% |
> |
$50,000 |
|||
|
Maine (d, h) |
6.50% |
> |
$5,200 |
$6,100 |
$3,900 |
|
7.95% |
> |
$20,900 |
|||
|
Maryland (f) |
2.00% |
> |
$0 |
$2,000 |
$3,200 |
|
3.00% |
> |
$1,000 |
|||
|
4.00% |
> |
$2,000 |
|||
|
4.75% |
> |
$3,000 |
|||
|
5.00% |
> |
$100,000 |
|||
|
5.25% |
> |
$125,000 |
|||
|
5.50% |
> |
$150,000 |
|||
|
5.75% |
> |
$250,000 |
|||
|
Massachusetts |
5.20% |
> |
$0 |
N/A |
$4,400 |
|
Michigan (f) |
4.25% of federal adjusted gross income with modification |
$3,950 |
|||
|
Minnesota (d) |
5.35% |
> |
$0 |
$6,200 |
$3,900 |
|
7.05% |
> |
$24,680 |
|||
|
7.85% |
> |
$81,080 |
|||
|
9.85% |
> |
$152,540 |
|||
|
Mississippi |
3.00% |
> |
$0 |
$2,300 |
$6,000 |
|
4.00% |
> |
$5,000 |
|||
|
5.00% |
> |
$10,000 |
|||
|
Missouri (e, f) |
1.50% |
> |
$0 |
$6,200 |
$2,100 |
|
2.00% |
> |
$1,000 |
|||
|
2.50% |
> |
$2,000 |
|||
|
3.00% |
> |
$3,000 |
|||
|
3.50% |
> |
$4,000 |
|||
|
4.00% |
> |
$5,000 |
|||
|
4.50% |
> |
$6,000 |
|||
|
5.00% |
> |
$7,000 |
|||
|
5.50% |
> |
$8,000 |
|||
|
6.00% |
> |
$9,000 |
|||
|
Montana (a, d, e) |
1.00% |
> |
$0 |
$4,270 |
$2,280 |
|
2.00% |
> |
$2,800 |
|||
|
3.00% |
> |
$4,900 |
|||
|
4.00% |
> |
$7,400 |
|||
|
5.00% |
> |
$10,100 |
|||
|
6.00% |
> |
$13,000 |
|||
|
6.90% |
> |
$16,700 |
|||
|
Nebraska (g) |
2.46% |
> |
$0 |
$6,200 |
$126 credit |
|
3.51% |
> |
$3,000 |
|||
|
5.01% |
> |
$18,000 |
|||
|
6.84% |
> |
$29,000 |
|||
|
Nevada |
No Income Tax |
||||
|
New Hampshire (b) |
5.00% |
> |
$0 |
N/A |
$2,400 |
|
New Jersey (f) |
1.40% |
> |
$0 |
N/A |
$1,000 |
|
1.75% |
> |
$20,000 |
|||
|
3.50% |
> |
$35,000 |
|||
|
5.53% |
> |
$40,000 |
|||
|
6.37% |
> |
$75,000 |
|||
|
8.97% |
> |
$500,000 |
|||
|
New Mexico |
1.70% |
> |
$0 |
$6,200 |
$3,900 |
|
3.20% |
> |
$5,500 |
|||
|
4.70% |
> |
$11,000 |
|||
|
4.90% |
> |
$16,000 |
|||
|
New York (f, g) |
4.00% |
> |
$0 |
$7,700 |
$1,000 |
|
4.50% |
> |
$8,200 |
|||
|
5.25% |
> |
$11,300 |
|||
|
5.90% |
> |
$13,350 |
|||
|
6.45% |
> |
$20,550 |
|||
|
6.65% |
> |
$77,150 |
|||
|
6.85% |
> |
$205,850 |
|||
|
8.82% |
> |
$1,029,250 |
|||
|
North Carolina |
5.80% |
> |
$0 |
$7,500 |
N/A |
|
North Dakota (d) |
1.22% |
> |
$0 |
$6,200 |
$3,900 |
|
2.27% |
> |
$36,900 |
|||
|
2.52% |
> |
$89,350 |
|||
|
2.93% |
> |
$186,350 |
|||
|
3.22% |
> |
$405,100 |
|||
|
Ohio (a, d, f, h) |
0.54% |
> |
$0 |
N/A |
$1,700 |
|
1.07% |
> |
$5,200 |
|||
|
2.15% |
> |
$10,400 |
|||
|
2.69% |
> |
$15,650 |
|||
|
3.22% |
> |
$20,900 |
|||
|
3.76% |
> |
$41,700 |
|||
|
4.30% |
> |
$83,350 |
|||
|
4.99% |
> |
$104,250 |
|||
|
5.392% |
> |
$208,500 |
|||
|
Oklahoma |
0.50% |
> |
$0 |
$5,950 |
$1,000 |
|
1.00% |
> |
$1,000 |
|||
|
2.00% |
> |
$2,500 |
|||
|
3.00% |
> |
$3,750 |
|||
|
4.00% |
> |
$4,900 |
|||
|
5.00% |
> |
$7,200 |
|||
|
5.25% |
> |
$8,700 |
|||
|
Oregon (d, e, f) |
5.00% |
> |
$0 |
$2,025 |
$188 credit |
|
7.00% |
> |
$3,300 |
|||
|
9.00% |
> |
$8,250 |
|||
|
9.90% |
> |
$125,000 |
|||
|
Pennsylvania (f) |
3.07% |
> |
$0 |
N/A |
N/A |
|
Rhode Island (d) |
3.75% |
> |
$0 |
$8,000 |
$3,800 |
|
4.75% |
> |
$59,600 |
|||
|
5.99% |
> |
$135,500 |
|||
|
South Carolina (d) |
3.00% |
> |
$2,880 |
$6,200 |
$3,900 |
|
4.00% |
> |
$5,760 |
|||
|
5.00% |
> |
$8,640 |
|||
|
6.00% |
> |
$11,520 |
|||
|
7.00% |
> |
$14,400 |
|||
|
South Dakota |
No Income Tax |
||||
|
Tennessee (b) |
6.00% |
> |
$0 |
N/A |
$1,250 |
|
Texas |
No Income Tax |
||||
|
Utah |
5.00% |
> |
$0 |
N/A |
$2,850 |
|
Vermont (d) |
3.55% |
> |
$0 |
$6,200 |
$3,900 |
|
6.80% |
> |
$36,900 |
|||
|
7.80% |
> |
$89,350 |
|||
|
8.80% |
> |
$186,350 |
|||
|
8.95% |
> |
$405,100 |
|||
|
Virginia |
2.00% |
> |
$0 |
$3,000 |
$930 |
|
3.00% |
> |
$3,000 |
|||
|
5.00% |
> |
$5,000 |
|||
|
5.75% |
> |
$17,000 |
|||
|
Washington |
No Income Tax |
||||
|
West Virginia |
3.00% |
> |
$0 |
N/A |
$2,000 |
|
4.00% |
> |
$10,000 |
|||
|
4.50% |
> |
$25,000 |
|||
|
6.00% |
> |
$40,000 |
|||
|
6.50% |
> |
$60,000 |
|||
|
Wisconsin (d) |
4.00% |
> |
$0 |
$9,930 |
$700 |
|
5.84% |
> |
$10,910 |
|||
|
6.27% |
> |
$21,820 |
|||
|
7.65% |
> |
$240,190 |
|||
|
Wyoming |
No Income Tax |
||||
|
Washington, DC |
4.00% |
> |
$0 |
$2,000 |
$1,675 |
|
6.00% |
> |
$10,000 |
|||
|
8.50% |
> |
$40,000 |
|||
|
8.95% |
> |
$350,000 |
|||
Note: Brackets are for single taxpayers. Some states double bracket widths for joint filers (AL, AZ, CT, HI, ID, KS, LA, ME, NE, and OR). NY doubles all except the 6.85% bracket, which is effective at $300,000. CA doubles all but the top bracket. Some states increase but do not double brackets for joint filers (GA, MN, NM, NC, ND, OK, RI, VT, and WI). MD decreases some and increases others. NJ adds a 2.45% rate and doubles some bracket widths. Consult Tax Foundation website for tables for joint filers and married filing separately.
(a) 2014 rates but 2013 brackets for CA, ID, MT, and OH. Laws in these states forbid revenue officials from inflation-indexing brackets until mid-year.
(b) Tax applies to interest and dividend income only.
(c) Rates apply to regular tax table. A special tax table is available for low-income taxpayers which reduces their tax payments.
(d) Bracket levels adjusted for inflation each year.
(e) These states allow some or all of federal income tax paid to be deducted from state taxable incomeTaxable 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. .
(f) Local income taxes are excluded. Twelve states have county or city level income taxes; the average rate within each jurisdiction is: 0.5% in AL; 1.38% in DE; 1.49% in IN; 0.5% in KS; 2.08% in KY; 2.88% in MD; 1.75% in MI; 0.5% in MO; 2.11% in NY; 2.25% in OH; 0.36% in OR; and 2% in PA. Weighted local rates are from Tax Foundation, 2014 State Business Tax Climate Index.
(g) NY and NE have “tax benefit recapture,” by which many high-income taxpayers pay their top tax rate on all income, not just on amounts above the bracket threshold.
(h) Ohio has suspended inflation indexingInflation indexing refers to automatic cost-of-living adjustments built into tax provisions to keep pace with inflation. Absent these adjustments, income taxes are subject to “bracket creep” and stealth increases on taxpayers, while excise taxes are vulnerable to erosion as taxes expressed in marginal dollars, rather than rates, slowly lose value. for the years 2013-2015. Maine has suspended inflation indexing for the years 2014-2015.
Source: Tax Foundation; state statutes, state tax forms and instructions; Commerce Clearing House.
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