US States Income Taxes Ranked by State

Explore how income taxes vary across all 50 U.S. states, Washington, D.C., and Puerto Rico, ranked from highest to lowest. The ranking is based on average family income of $75,000 per year.

Introduction

State income taxes play a significant role in family finances, impacting everything from budgeting to retirement planning. In this article, we rank every state by its income tax burden, assuming a family earning $75,000 annually and filing jointly. Washington, D.C., and Puerto Rico are included for a complete picture.

Methodology and Assumptions

• Average Family Income: $75,000 per year (family of four).
• Taxable Income: Adjusted based on state-specific standard deductions and exemptions.
• State-Level Taxes Only: Excludes local/city income taxes and federal taxes.

US States Income Tax Rankings

The following rankings are based on the effective tax rate for a family earning $75,000 annually:

1. California - Top tax rate: 13.3%; Effective rate: 9.3%.
2. Hawaii - Top tax rate: 11%; Effective rate: 7.5%.
3. Oregon - Top tax rate: 9.9%; Effective rate: 7%.
4. New Jersey - Top tax rate: 10.75%; Effective rate: 6.8%.
5. New York - Top tax rate: 10.9%; Effective rate: 6.5%.
6. Vermont - Top tax rate: 8.75%; Effective rate: 6.4%.
7. Connecticut - Top tax rate: 6.99%; Effective rate: 5.8%.
8. Maryland - Top tax rate: 5.75%; Effective rate: 5.6%.
9. Minnesota - Top tax rate: 9.85%; Effective rate: 5.5%.
10. Massachusetts - Flat tax rate: 5%; Effective rate: 5%.
11. Illinois - Flat tax rate: 4.95%; Effective rate: 4.95%.
12. Washington, D.C. - Top tax rate: 10.75%; Effective rate: 4.8%.
13. Rhode Island - Top tax rate: 5.99%; Effective rate: 4.7%.
14. Wisconsin - Top tax rate: 7.65%; Effective rate: 4.5%.
15. Iowa - Top tax rate: 8.53%; Effective rate: 4.3%.
16. North Carolina - Flat tax rate: 4.75%; Effective rate: 4.3%.
17. Delaware - Top tax rate: 6.6%; Effective rate: 4.1%.
18. Colorado - Flat tax rate: 4.55%; Effective rate: 4.1%.
19. Georgia - Top tax rate: 5.75%; Effective rate: 4%.
20. Kentucky - Flat tax rate: 5%; Effective rate: 3.9%.
21. Virginia - Top tax rate: 5.75%; Effective rate: 3.8%.
22. Maine - Top tax rate: 7.15%; Effective rate: 3.7%.
23. Missouri - Top tax rate: 5.4%; Effective rate: 3.6%.
24. Arkansas - Top tax rate: 4.9%; Effective rate: 3.4%.
25. Utah - Flat tax rate: 4.85%; Effective rate: 3.2%.
26. Oklahoma - Top tax rate: 4.75%; Effective rate: 3.1%.
27. Indiana - Flat tax rate: 3.15%; Effective rate: 3.1%.
28. Michigan - Flat tax rate: 4.25%; Effective rate: 3%.
29. Nebraska - Top tax rate: 6.64%; Effective rate: 2.9%.
30. West Virginia - Top tax rate: 6.5%; Effective rate: 2.8%.
31. Alabama - Top tax rate: 5%; Effective rate: 2.7%.
32. Louisiana - Top tax rate: 4.25%; Effective rate: 2.5%.
33. Mississippi - Top tax rate: 5%; Effective rate: 2.3%.
34. Arizona - Top tax rate: 4.5%; Effective rate: 2.2%.
35. New Mexico - Top tax rate: 5.9%; Effective rate: 2%.
36. Montana - Top tax rate: 6.75%; Effective rate: 1.9%.
37. South Carolina - Top tax rate: 7%; Effective rate: 1.8%.
38. Kansas - Top tax rate: 5.7%; Effective rate: 1.7%.
39. Idaho - Top tax rate: 6%; Effective rate: 1.6%.
40. Pennsylvania - Flat tax rate: 3.07%; Effective rate: 1.6%.
41. Alaska - No income tax.
42. Florida - No income tax.
43. Texas - No income tax.
44. South Dakota - No income tax.
45. Nevada - No income tax.
46. Wyoming - No income tax.
47. Washington - No income tax.
48. Tennessee - No income tax.
49. New Hampshire - No income tax (dividends/interest only).
50. Puerto Rico - Top tax rate: 33%; Effective rate varies based on residency.

Conclusion

Income taxes vary significantly across the U.S. Whether you prefer high-tax states with robust public services like California or no-tax states like Texas, understanding these differences is essential. Use our Retirementize online income calculator to plan your finances efficiently based on your location.

---

---