State Income Tax Rates in the US
California has the highest state income tax rate at 13.3%. Seven states – Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming – have no personal income tax. Property taxes are real estate taxes paid by property owners.
State Tax Burdens and Rankings
New York, Connecticut, and Hawaii rank among the top three states with the highest tax burdens overall. They have high income, sales, and property taxes to fund services in densely populated areas. Middle-class Californians pay an income tax rate from 6% to 9.3%. The next highest state income tax rates are Hawaii up to 11%, New Jersey up to 10.75%, and New York up to 10.9%.
Taxation in Different States
While New Jersey has high income and property taxes, it has a low sales tax rate. Tennessee has no income tax and low property taxes, but the second-highest combined sales tax rate at 9.548%. Delaware, Montana, New Hampshire, and Oregon have no statewide sales tax. Location matters for state income tax rates, which range from 0% to over 13% across states. Among the top ten highest income tax rate states, California is highest at 13.3%, then Hawaii, New Jersey, New York, Oregon, Minnesota, Iowa, Vermont, Maine, and Washington D.C.