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State Income Tax Rate

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					State Income Tax Rates
             We've put together a lot of information on federal income tax brackets, so here were going to add to the income tax
             story with a listing of state income tax rates. Keep in mind that state income tax is not the end of your tax bill,
 cause there are a couple of little things called property tax and sales tax that come into play too.


tate Income Taxes
  fact, that brings us to the pros and cons of taxes of any kind. It's really one of those pay me now or pay me later examples. If
our state collects a lot of income taxes, then the money is going somewhere right? Hopefully for state-run programs that help
 ose less fortunate than you.


ources and Use of Government Funding
 many states, income taxes are one of the primary sources of educational
nding as well as funding for many essential services such as police and fire         Additional Resources
otection. For example, half the money needed to run your town's high school                Payroll Taxes
ight come from state income taxes and the other half from property taxes.                  State Sales Tax Rates
                                                                                           State Income Tax Rates
 you live in a state where the property taxes are low, the income tax rate is low          Tax-Friendly States
 d sales tax is reasonable, then something has to give - and it's probably the             State Sales Tax Deduction
 ucational system in your particular state.                                                Federal Income Tax Rates
                                                                                           FICA Tax

tate Income Tax Tables
he state income tax tables also help to explain why some states are popular as retirement communities. For example, one reason
orida is popular with the senior citizens is not only because of the climate, but also because there is no state income tax. On the
her hand, despite the fact that Nevada has no state income tax, they've got a large gambling industry that does pay taxes. So the
ble can be misleading at times, especially if there is a dominant industry in the state.


tate Income Tax Trivia
ut before you get to the tax rates, we'd like to share some state income tax trivia. This way taxes almost seem like "fun." (Yeah,
ght.)

      There are currently seven states that do not collect any state income taxes at all - Alaska, Florida, Nevada, South Dakota,
       Texas, Washington and Wyoming.
      There are two states that only collect income taxes on dividends and interest income - New Hampshire and Tennessee.
      Vermont and California have the highest incremental state tax rate - 9.5% and 9.3% respectively.
      Six states have only one income tax bracket, charging its residents one rate on all income, which is called a flat rate -
       Colorado (4.63%), Illinois (3.0%), Indiana (3.4%), Massachusetts (4.35%), Michigan (3.9%), Pennsylvania (3.07%), and
       Utah (5.0%).
      Missouri has the largest number of tax brackets (10) ranging from 1.5 - 6.0%.
tate Income Tax Tables
ate income tax tables are like federal income tax rates, but putting them all in one place is a challenge. That's because the numb
 tax brackets and the ranges of income and the tax rates themselves vary quite a bit from state to state. If you want an at-a-glanc
ew of the income taxes for each state, then take a look at the table below.


                                        Individual State Income Tax Rates 2008
             State                 Tax Rate                                        Brackets Bracket Range
             Alabama               2.0 - 5.0%                                      3         $500 - 3,000
             Alaska                None
             Arizona               2.59 - 4.54%                                    5         $10,000 - 150,000
             Arkansas              1.0 - 7.0%                                      6         $3,699 - 31,000
             California            1.0 - 9.3%                                      6         $6,827 - 44,815
             Colorado              4.63%                                           1         Flat Rate
             Connecticut           3.0 - 5.0%                                      2         $10,000 - 10,000
             Delaware              2.2 - 5.95%                                     6         $5,000 - 60,000
             Florida               None
             Georgia               1.0 - 6.0%                                      6         $750 - 7,000
             Hawaii                1.4 - 8.25%                                     9         $2,400 - 48,000
             Idaho                 1.6 - 7.8%                                      8         $1,237 - 62,055
             Illinois              3.0%                                            1         Flat Rate
             Indiana               3.4%                                            1         Flat Rate
             Iowa                  0.36 –8.98%                                     9         1,343 - 60,436
             Kansas                3.5 - 6.45%                                     3         $15,000 - 30,000
             Kentucky              2.0 - 6.0%                                      5         $3,000 - 75,000
             Louisiana             2.0 - 6.0%                                      3         $12,500 - 25,000
             Maine                 2.0 - 8.5%                                      4         $4,849 - 19,450
             Maryland              2.0 - 4.75%                                     4         $1,000 - 500,000
             Massachusetts         5.3%                                            1         Flat Rate
             Michigan              4.35%                                           1         Flat Rate
             Minnesota             5.35 - 7.85%                                    3         $21,800 - 71,591
             Mississippi           3.0 - 5.0%                                      3         $5,000 - 10,000
Missouri         1.5 - 6.0%                          10   $1,000 - 9,000
Montana          1.0 - 6.9%                          7    $2,500 - 14,900
Nebraska         2.56 - 6.84%                        4    $2,400 - 27,001
Nevada           None

New Hampshire    Dividend and Interest Income Only

New Jersey       1.4 - 8.97%                         6    $20,000 - 500,000
New Mexico       1.7 - 5.3%                          4    $5,500 - 16,000
New York         4.0 - 6.85%                         5    $8,000 - 500,000
North Carolina   6.0 - 7.75%                         4    $12,750 - 60,000
North Dakota     2.1 -5.54%                          5    $31,850 - 349,701
Ohio             0.618 - 6.24%                       9    $5,000 - 200,000
Oklahoma         0.5 - 5.5%                          7    $1,000 - 8,701
Oregon           5.0 - 9.0%                          3    $2,900 - 7,300
Pennsylvania     3.07%                               1    Flat Rate
Rhode Island     25% of Federal Taxes
South Carolina   0.0 - 7.0%                          6    $2,670 - 13,350
South Dakota     None

Tennessee        Dividend and Interest Income Only

Texas            None
Utah             5.0%                                1    Flat Rate
Vermont          3.6 - 9.5%                          5    $32,550 - 357,700
Virginia         2.0 - 5.75%                         4    $3,000 - 17,000
Washington       None
West Virginia    3.0 - 6.5%                          5    $10,000 - 60,000
Wisconsin        4.6 - 6.75%                         5    $9,700 - 145,460
Wyoming          None
District of
                 4.0 - 8.5%                          3    $10,000 - 40,000
Columbia

				
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