Where Americans pay the most in state income taxes, ranked from worst to best

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REUTERS/Shannon Stapleton

Seven states don't tax income at all.

  • Taxes are due by April 17 this year.
  • Most Americans should file a state income tax return in addition to a federal income tax return.
  • State income tax rates range from 0% to 13.3%, depending on what state you live in and your income.

Tax day is April 17 this year, but the IRS began accepting tax returns on January 29.Advertisement

Most Americans file returns for both state income tax and federal income tax. You can do that through H&R Block or TurboTax - which both offer free tax filing for eligible taxpayers - or an accountant.

Everyone pays federal income taxes. How much you pay depends on how much you earn, also known as your tax bracket.

Although President Donald Trump signed the Republican tax bill into law at the end of December, new federal tax brackets will only affect income earned starting January 1, 2018. You'll see those changes when you file your 2018 taxes next year.
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When it comes to state income tax, how much you pay varies depending on where you live. Seven US states have no state income tax - Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. New Hampshire and Tennessee don't have state income tax either, but they do tax interest and dividends at 5% and 6%, respectively.

The rest of the states either have a flat income tax - meaning everyone, regardless of how much they earn, pays the same percentage of their income to the government - or a progressive income tax, which means tax rate is determined by income.Among the 41 states that tax income, North Dakota has the lowest maximum rate at 2.9%. California and Maine are the only two states with double-digit tax rates for the highest earners, topping out at 13.3% and 10.15% respectively. Advertisement

After you file your tax return, you may get a state tax refund or a federal tax refund - or both. The IRS says the fastest way to get your tax refund is the method already used by most taxpayers: filing electronically and selecting direct deposit as the method for receiving your refund.

Below, we've created a ranking of states from the highest state income tax rate to the lowest income tax rate. For states that have a range of tax rates based on income, we used the highest rate to determine the ranking.

California

California

State income tax: 1% - 13.3%

Maine

Maine

State income tax: 5.8% - 10.15%

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Oregon

Oregon

State income tax: 5% - 9.9%

Minnesota

Minnesota

State income tax: 5.35% - 9.85%

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Iowa

Iowa

State income tax: 0.36% - 8.98%

New Jersey

New Jersey

State income tax: 1.4% - 8.97%

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Vermont

Vermont

State income tax: 3.55% - 8.95%

Washington, DC

Washington, DC

State income tax: 4% - 8.95%

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New York

New York

State income tax: 4% - 8.82%

Hawaii

Hawaii

State income tax: 1.4% - 8.25%

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Wisconsin

Wisconsin

State income tax: 4% - 7.65%

Idaho

Idaho

State income tax: 1.6% - 7.4%

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South Carolina

South Carolina

State income tax: 0% - 7%

Connecticut

Connecticut

State income tax: 3% - 6.99%

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Arkansas

Arkansas

State income tax: 0.9% - 6.9%

Montana

Montana

State income tax: 1% - 6.9%

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Nebraska

Nebraska

State income tax: 2.46% - 6.84%

Delaware

Delaware

State income tax: 2.2% - 6.6%

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West Virginia

West Virginia

State income tax: 3% - 6.5%

Georgia

Georgia

State income tax: 1% - 6%

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Kentucky

Kentucky

State income tax: 2% - 6%

Louisiana

Louisiana

State income tax: 2% - 6%

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Missouri

Missouri

State income tax: 1.5% - 6%

Rhode Island

Rhode Island

State income tax: 3.75% - 5.99%

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Maryland

Maryland

State income tax: 2% - 5.75%

North Carolina

North Carolina

State income tax: 5.75%

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Virginia

Virginia

State income tax: 2% - 5.75%

Oklahoma

Oklahoma

State income tax: 0.5% - 5.25%

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Massachusetts

Massachusetts

State income tax: 5.1%

Alabama

Alabama

State income tax: 2% - 5%

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Mississippi

Mississippi

State income tax: 3% - 5%

Utah

Utah

State income tax: 5%

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Ohio

Ohio

State income tax: 0.495% - 4.997%

New Mexico

New Mexico

State income tax: 1.7% - 4.9%

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Colorado

Colorado

State income tax: 4.63%

Kansas

Kansas

State income tax: 2.7% - 4.6%

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Arizona

Arizona

State income tax: 2.59% - 4.54%

Michigan

Michigan

State income tax: 4.25%

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Illinois

Illinois

State income tax: 3.75%

Indiana

Indiana

State income tax: 3.3%

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Pennsylvania

Pennsylvania

State income tax: 3.07%

North Dakota

North Dakota

State income tax: 1.1% - 2.9%

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