Download FISCAL FACT No. 422: State Income Tax Rates and Brackets 2014 Key Findings State income tax 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 tax 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 bracket of 9.85 percent on income over $152,540 for single filers. Income taxes are a major, and often complicated, component of state revenues. Furthermore, unlike sales or excise taxes 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. Some states abide by principles of sound tax policy and double bracket widths for married filers and index tax brackets for inflation, while others fail to adopt these measures. Some states offer generous standard deductions and personal exemptions, allowing taxpayers to adjust income based on household size, while others don’t. Below, we provide the most updated data available, as of publication date, on current state tax rates and brackets, standard deductions, and per-filer personal exemptions for individuals filing singly. 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 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 indexing 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.
