State Tax Calculator by State: Complete Income Tax Guide 2024

Understanding State Income Taxes

State income taxes vary dramatically across the United States, with some states imposing no income tax at all while others have rates exceeding 13%. Understanding your state's tax structure is crucial for accurate tax planning and budgeting.

States with No Income Tax

Nine states don't impose state income tax on wages:

• Alaska - No state income tax, oil revenue funds government
• Florida - No state income tax, relies on sales and property taxes
• Nevada - No state income tax, gaming and tourism revenue
• New Hampshire - No tax on wages, but taxes dividends and interest
• South Dakota - No state income tax, low cost of living
• Tennessee - No tax on wages, eliminated investment income tax in 2021
• Texas - No state income tax, oil and business taxes fund state
• Washington - No state income tax, high sales taxes
• Wyoming - No state income tax, mineral extraction revenue

Highest State Income Tax Rates (2024)

Top 10 Highest Tax States

1. California: 13.3% (plus 1% mental health tax on income over $1M)
2. Hawaii: 11%
3. New Jersey: 10.75%
4. Oregon: 9.9%
5. Minnesota: 9.85%
6. District of Columbia: 9.75%
7. New York: 8.82%
8. Vermont: 8.75%
9. Iowa: 8.53%
10. Wisconsin: 7.65%

State Tax Structures

Progressive Tax Systems

Most states use progressive tax brackets where higher income is taxed at higher rates:

California Example (2024):

• $0 - $10,099: 1%
• $10,100 - $23,942: 2%
• $23,943 - $37,788: 4%
• $37,789 - $52,455: 6%
• $52,456 - $66,295: 8%
• $66,296 - $338,639: 9.3%
• $338,640 - $406,364: 10.3%
• $406,365 - $677,278: 11.3%
• $677,279+: 12.3%
• $1,000,000+: 13.3%

Flat Tax Systems

Some states use a single tax rate for all income levels:

• Colorado: 4.4%
• Illinois: 4.95%
• Indiana: 3.23%
• Kentucky: 4.5%
• Massachusetts: 5%
• Michigan: 4.25%
• North Carolina: 4.75%
• Pennsylvania: 3.07%
• Utah: 4.85%

Photo by Scott Graham on Unsplash

Regional Tax Analysis

Northeast States

New York

• Top rate: 8.82%
• Standard deduction: $8,000 (single), $16,050 (married)
• Notable: NYC adds additional 3.876% local tax

Massachusetts

• Rate: 5% flat tax
• Standard deduction: $4,400 (single), $8,800 (married)
• Notable: Additional 4% tax on income over $1M

Connecticut

• Top rate: 6.99%
• Brackets: 7 tax brackets
• Notable: High property taxes offset income tax

Southeast States

Georgia

• Top rate: 5.75%
• Brackets: 6 tax brackets
• Standard deduction: $4,600 (single), $6,000 (married)

North Carolina

• Rate: 4.75% flat tax
• Standard deduction: $25,500 (single), $51,000 (married)
• Notable: Recently simplified to flat tax

Virginia

• Top rate: 5.75%
• Brackets: 4 tax brackets
• Standard deduction: $4,500 (single), $9,000 (married)

Midwest States

Illinois

• Rate: 4.95% flat tax
• Standard deduction: $2,425 (single), $4,850 (married)
• Notable: High property taxes in Chicago area

Ohio

• Top rate: 3.99%
• Brackets: 5 tax brackets
• Notable: No tax on first $26,050 for married couples

Michigan

• Rate: 4.25% flat tax
• Standard deduction: $5,000 (single), $10,000 (married)
• Notable: Retirement income partially exempt

Western States

California

• Top rate: 13.3%
• Brackets: 10 tax brackets
• Standard deduction: $5,202 (single), $10,404 (married)
• Notable: Highest state income tax in US

Oregon

• Top rate: 9.9%
• Brackets: 4 tax brackets
• Standard deduction: $2,605 (single), $5,210 (married)
• Notable: No sales tax

Colorado

• Rate: 4.4% flat tax
• Standard deduction: $14,700 (single), $29,400 (married)
• Notable: TABOR limits tax increases

Special State Tax Considerations

Local Income Taxes

Some states allow local governments to impose additional income taxes:

States with Local Income Taxes:

• Alabama: Cities can impose up to 5%
• Delaware: Wilmington imposes 1.25%
• Indiana: Counties impose 0.5-3.38%
• Iowa: School districts can add taxes
• Kentucky: Cities can impose up to 2.5%
• Maryland: Counties impose 2.25-3.2%
• Michigan: Cities can impose up to 2.4%
• New York: NYC adds 3.876%, Yonkers adds 0.5%
• Ohio: Cities can impose up to 3%
• Pennsylvania: Cities can impose various rates

Reciprocity Agreements

Some states have agreements to avoid double taxation for border workers:

Common Reciprocity Pairs:

• Illinois ↔ Iowa, Kentucky, Michigan, Wisconsin
• Indiana ↔ Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin
• Maryland ↔ Pennsylvania, Virginia, West Virginia, DC
• Minnesota ↔ Michigan, North Dakota
• New Jersey ↔ Pennsylvania
• Ohio ↔ Indiana, Kentucky, Michigan, Pennsylvania, West Virginia
• Virginia ↔ Kentucky, Maryland, Pennsylvania, West Virginia, DC

State Tax Calculation Examples

Example 1: $75,000 Income in Different States

California (Progressive):

• Tax brackets applied progressively
• State tax owed: ~$4,200
• Effective rate: 5.6%

Illinois (Flat):

• $75,000 × 4.95%: $3,713
• Effective rate: 4.95%

Texas (No Tax):

• State tax owed: $0
• Effective rate: 0%

Example 2: $150,000 Income Comparison

New York:

• State tax: ~$10,500
• NYC tax (if applicable): ~$5,800
• Total: ~$16,300

Florida:

• State tax: $0
• Annual savings vs NY: $16,300

State Deductions and Credits

Common State Deductions

• Federal tax deduction: Some states allow deducting federal taxes paid
• Retirement income: Many states exempt some retirement income
• Military pay: Often partially or fully exempt
• Student loan interest: Many states follow federal deduction

State-Specific Credits

Education Credits:

• 529 plan contributions: Many states offer deductions
• K-12 tuition: Some states provide credits
• College expenses: Various state credits available

Other Common Credits:

• Child and dependent care
• Earned Income Tax Credit
• Property tax credits
• Charitable contribution credits

Tax Planning Strategies by State

High-Tax States

• Maximize 401(k) contributions (state tax deduction)
• Consider municipal bonds (often state tax-free)
• Time income and deductions carefully
• Evaluate Roth vs traditional retirement accounts

No-Tax States

• Focus on federal tax planning
• Consider Roth accounts (no state tax on withdrawals)
• Watch for high sales/property taxes
• Plan for potential future tax changes

State Tax Trends and Changes

Recent Tax Reforms

• North Carolina: Moved to flat tax system
• Arizona: Implemented flat tax
• Iowa: Transitioning to flat tax by 2026
• Georgia: Considering flat tax proposal

States Considering Changes

• Income tax elimination: Several states exploring
• Millionaire taxes: Some states adding high-earner surcharges
• Remote work taxes: New rules for telecommuters

Multi-State Tax Issues

When You Owe Tax to Multiple States

• Resident state: Tax on all income
• Non-resident state: Tax on income earned there
• Credit for taxes paid: Avoid double taxation

Establishing State Residency

Factors states consider:

• Days spent in state (183-day rule common)
• Permanent home location
• Voter registration
• Driver's license
• Bank accounts and investments
• Business interests

Using Our State Tax Calculator

Our state tax calculator helps you:

• Calculate taxes for any state
• Compare tax burden across states
• Factor in standard deductions and exemptions
• Estimate total tax liability
• Plan for multi-state situations

Simply select your state, enter your income and filing status to see your estimated state tax liability.

State Tax Resources

Where to Find State Tax Information

• State revenue department websites
• State tax forms and instructions
• Professional tax software
• Certified public accountants

Important Deadlines

• Most states: April 15 (same as federal)
• Delaware: April 30
• Hawaii: April 20
• Louisiana: May 15
• Iowa: April 30

Conclusion

State income taxes vary significantly across the United States, from zero percent in nine states to over 13% in California. Understanding your state's tax structure, brackets, deductions, and credits is essential for accurate tax planning and budgeting. Whether you're considering a move to a different state or simply want to optimize your current tax situation, use our state tax calculator to estimate your liability and make informed financial decisions.