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
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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 otection. For example, half the money needed to run your town's high school ight come from state income taxes and the other half from property taxes.
you live in a state where the property taxes are low, the income tax rate is low d sales tax is reasonable, then something has to give - and it's probably the ucational system in your particular state.
Payroll Taxes State Sales Tax Rates State Income Tax Rates Tax-Friendly States State Sales Tax Deduction 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 Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Tax Rate 2.0 - 5.0% None 2.59 - 4.54% 1.0 - 7.0% 1.0 - 9.3% 4.63% 3.0 - 5.0% 2.2 - 5.95% None 1.0 - 6.0% 1.4 - 8.25% 1.6 - 7.8% 3.0% 3.4% 0.36 –8.98% 3.5 - 6.45% 2.0 - 6.0% 2.0 - 6.0% 2.0 - 8.5% 2.0 - 4.75% 5.3% 4.35% 5.35 - 7.85% 3.0 - 5.0% 6 9 8 1 1 9 3 5 3 4 4 1 1 3 3 $750 - 7,000 $2,400 - 48,000 $1,237 - 62,055 Flat Rate Flat Rate 1,343 - 60,436 $15,000 - 30,000 $3,000 - 75,000 $12,500 - 25,000 $4,849 - 19,450 $1,000 - 500,000 Flat Rate Flat Rate $21,800 - 71,591 $5,000 - 10,000 5 6 6 1 2 6 $10,000 - 150,000 $3,699 - 31,000 $6,827 - 44,815 Flat Rate $10,000 - 10,000 $5,000 - 60,000 Brackets Bracket Range 3 $500 - 3,000
Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming District of Columbia
1.5 - 6.0% 1.0 - 6.9% 2.56 - 6.84% None Dividend and Interest Income Only 1.4 - 8.97% 1.7 - 5.3% 4.0 - 6.85% 6.0 - 7.75% 2.1 -5.54% 0.618 - 6.24% 0.5 - 5.5% 5.0 - 9.0% 3.07% 25% of Federal Taxes 0.0 - 7.0% None Dividend and Interest Income Only None 5.0% 3.6 - 9.5% 2.0 - 5.75% None 3.0 - 6.5% 4.6 - 6.75% None 4.0 - 8.5%
10 7 4
$1,000 - 9,000 $2,500 - 14,900 $2,400 - 27,001
6 4 5 4 5 9 7 3 1
$20,000 - 500,000 $5,500 - 16,000 $8,000 - 500,000 $12,750 - 60,000 $31,850 - 349,701 $5,000 - 200,000 $1,000 - 8,701 $2,900 - 7,300 Flat Rate
6
$2,670 - 13,350
1 5 4
Flat Rate $32,550 - 357,700 $3,000 - 17,000
5 5
$10,000 - 60,000 $9,700 - 145,460
3
$10,000 - 40,000