In the following tables, we have compiled the most up-to-date data available on state individual income tax rates, brackets, standard deductions, and personal exemptions for both single and joint filers. Because many states use the federal tax code as the starting point for their own standard deduction and personal exemption calculations, some states that previously linked to these provisions in the federal tax code have updated their conformity statutes in recent years to either adopt federal changes, retain their previous deduction and exemption amounts, or retain their own separate system but increase the state-provided deduction or exemption amounts. The federal Tax Cuts and Jobs Act of 2017 (TCJA) increased the standard deduction (set at $13,850 for single filers and $27,700 for joint filers in 2023) while suspending the personal exemption by reducing it to $0 through 2025. ![]() Some states double their single-filer bracket widths for married filers to avoid imposing a “marriage penalty.” Some states index tax brackets, exemptions, and deductions for inflation, while many others do not. Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all. States’ approaches to income taxes vary in other details as well. Sources: Tax Foundation state tax statutes, forms, and instructions Bloomberg BNA. ![]() **Applies to capital gains income of high-earners. Note: *Applies to interest and dividends income only. 2023 State Individual Income Tax Structures States with No Income Tax Table 1 shows how each state’s individual income tax is structured. For example, the top rate kicks in at or above $1 million in California (when the “millionaire’s tax” surcharge is included), Massachusetts, New Jersey, New York, and the District of Columbia. In other states, the top rate kicks in at a much higher level of marginal income. For example, Georgia’s taxpayers reach the state’s sixth and highest bracket at $7,000 in taxable income. In some states, a large number of brackets are clustered within a narrow income band. Top marginal rates range from Arizona’s 2.5 percent to California’s 13.3 percent. At the other end of the spectrum, Hawaii has 12 brackets. Kansas, for example, is one of several states imposing a three-bracket income tax system. Conversely, 30 states and the District of Columbia levy graduated-rate income taxes, with the number of brackets varying widely by state. Of those states taxing wages, eleven have single-rate tax structures, with one rate applying to all taxable income. ![]() Seven states levy no individual income tax at all. New Hampshire exclusively taxes dividend and interest income while Washington only taxes capital gains income. Their prominence in public policy considerations is further enhanced by individuals being actively responsible for filing their income taxes, in contrast to the indirect payment of sales and excise taxes.įorty-three states levy individual income taxes. Individual income taxes are a major source of state government revenue, accounting for 40 percent of state tax collections. Subscribe to get insights from our trusted experts delivered straight to your inbox. Stay informed on the tax policies impacting you. Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all. Some states double their single-filer bracket widths for married filers to avoid a “ marriage penalty.” Some states index tax brackets, exemptions, and deductions for inflation many others do not. ![]()
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