State income tax rates vary by state and depend on your income level
State income tax is not a flat percentage across the country. Each state that collects income tax sets its own rates, and most use a progressive bracket system — meaning you pay a higher percentage as your income rises. A person earning $40,000 in one state might pay a different amount than someone earning the same in another state. Nine states have no income tax at all.
Your actual tax bill depends on three things: which state you live in, how much you earned that year, and whether you file as single, married, or head of household. The rate you see published — say, 5% or 8% — is usually the top rate in that state's bracket, not what everyone pays.
This guide explains how state income tax brackets work, shows you where to find your state's specific rates, and walks through what the numbers mean when you look them up.
Key Takeaways
- Nine states (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire for wages) collect no income tax at all.
- States that do tax income use progressive brackets, so you pay different rates on different portions of your income, not one rate on everything.
- Your state's tax department website publishes the exact bracket tables and rates for the current tax year, updated annually.
- Filing status (single, married filing jointly, head of household) changes which bracket you fall into at the same income level.
- Some states also tax retirement income, capital gains, or dividends differently than wages, so your total state tax is not always just income tax.
How progressive tax brackets actually work
A progressive bracket system does not mean you pay one rate on your entire income. Instead, you pay different rates on different slices of it. If your state has brackets of 3%, 5%, and 7%, you do not pay 7% on all your income — you pay 3% on the first slice, 5% on the next slice, and 7% only on the portion that falls into the highest bracket.
Example: A single filer in a state with brackets at $30,000 (3%), $60,000 (5%), and $100,000 (7%) earning $70,000 total would pay 3% on the first $30,000, then 5% on the remaining $40,000. The total tax is not 7% of $70,000. It is ($30,000 × 0.03) + ($40,000 × 0.05) = $900 + $2,000 = $2,900, or about 4.1% of total income.
This is why the published "top rate" can be misleading. A state advertising a 9% top rate does not mean most people pay 9%. Most people pay less because their income does not reach the highest bracket.
Where to find your state's current tax rates and brackets
Each state's tax department publishes its bracket tables every year, usually by January or February for the tax year that just ended. The tables show the income ranges for each bracket and the rate that applies to each one, broken down by filing status.
To find yours, search "[Your State] Department of Revenue tax brackets [current year]" or "[Your State] income tax rates." The official state website will have a page labeled "Tax Brackets," "Tax Rates," or "Individual Income Tax." Some states call it "Personal Income Tax" or "State Income Tax Rates."
The IRS also publishes a list of all state tax rates on its website, though it does not include the full bracket tables — just the top rate for each state. Your state's own tax department is the authoritative source for the complete brackets you need.
States with no income tax and states with flat rates
Nine states collect no income tax on wages: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire. New Hampshire is a partial exception — it taxes interest and dividend income but not wages.
A handful of other states use a flat tax instead of brackets. Colorado, Illinois, Indiana, Kentucky, Massachusetts, Michigan, Mississippi, Missouri, North Carolina, and Pennsylvania all charge the same percentage on all income above a certain threshold. Illinois, for example, has a flat 4.95% rate regardless of income level. A flat tax is simpler to calculate but means higher earners pay the same rate as lower earners.
If you moved to a no-tax or flat-tax state, you still owe tax to your previous state on income earned while you lived there, up to the date you moved. Your new state's tax applies only to income earned after you establish residency there.
How filing status changes your tax bracket
The same income puts you in different brackets depending on whether you file as single, married filing jointly, head of household, or married filing separately. Married filing jointly usually has the widest brackets, so a couple can earn more before hitting a higher rate than a single person earning the same amount.
Example: In a state where the 5% bracket for single filers starts at $40,000 but for married filing jointly starts at $80,000, a married couple earning $70,000 combined stays in the lower bracket, while a single person earning $70,000 moves into the higher one. This is why married couples sometimes pay less total tax than two single people earning the same amounts separately.
When you look up your state's brackets, make sure you are reading the row for your filing status. The numbers look similar but apply to different income levels.
Other state taxes that affect your total bill
Income tax is not the only state tax on earnings. Some states also tax capital gains (profit from selling investments), dividends, or retirement income at different rates than wages. A few states tax only certain types of income.
Tennessee and New Hampshire, for example, tax dividend and interest income but not wages. Some states tax capital gains at a higher rate than ordinary income. Others exempt retirement account withdrawals or Social Security. These rules vary widely and can significantly change your total state tax liability.
When you calculate what you owe, check whether your state has separate rules for the type of income you received. Your state tax department's website usually has a section on "Types of Income" or "What Income Is Taxable."
How to use bracket tables to estimate your own tax
Once you have your state's bracket table, you can estimate your tax by hand. Write down your total income for the year. Find the bracket table for your filing status. Multiply the income in each bracket by the rate for that bracket, then add them together.
Most people use tax software or a tax preparer instead, since the calculation is tedious and mistakes are easy. But understanding the brackets yourself helps you see why your tax bill is what it is and whether a change in income or filing status will affect you significantly.
If your income is close to a bracket boundary, even a small raise or deduction can move you into a different bracket. Knowing this in advance can help you plan larger financial decisions like taking a bonus or selling an investment.
Frequently Asked Questions
Do I pay state income tax if I live in a no-tax state but work in a state that has income tax?
You usually owe tax to the state where you work, not where you live. If you live in Florida (no income tax) but work in Georgia (which has income tax), you file a Georgia return and pay Georgia tax. Some states have reciprocal agreements that change this, so check both your home state and work state's rules.
What is the difference between a tax bracket and a tax rate?
A tax bracket is a range of income. A tax rate is the percentage you pay on income in that bracket. A state might have a bracket of $50,000 to $100,000 with a 6% rate. That means income between $50,000 and $100,000 is taxed at 6%, but income below $50,000 is taxed at a lower rate.
If I move mid-year, do I owe tax to both states?
Yes, typically. You owe tax to your old state on income earned before you moved and to your new state on income earned after you moved. You file a part-year return in each state showing the income earned during the months you lived there. Some states offer credits to avoid double taxation.
Are state tax brackets adjusted every year?
Most states adjust brackets annually for inflation, so the income ranges shift slightly each year. This means the same income might put you in a different bracket in 2024 than it did in 2023. Your state tax department publishes new brackets every January or February for the tax year that just ended.
Does my federal tax bracket affect my state tax bracket?
No. Federal and state tax systems are separate. Your federal bracket has no effect on your state bracket, and vice versa. You calculate each one independently using the income thresholds set by the federal government and your state government.