State
Income Tax
States impose various types of tax, including
sales taxes, excise taxes, license taxes, income
taxes, intangible taxes, property taxes, estate
taxes and inheritance taxes. Absence of income
tax in a state doesn't therefore necessarily imply
a low tax burden; it's necessary to check all
types of tax depending on a taxpayer's personal
circumstances.
41 states impose broad-based income taxes, while
New Hampshire and Tennessee apply it only to income
from interest and dividends. Seven states (Alaska,
Florida, Nevada, South Dakota, Texas, Washington,
and Wyoming) do not tax personal income. 35 of
the 41 states base state income tax on federal
income tax rules, typically taking an additional
percentage of taxable income.
This
simple equation can be upset by differential treatment
of deductions and offsets. The states also vary
in their treatment of Social Security benefits,
pensions and IRA contributions. As with federal
taxes, the information given here is for general
background only. For more accurate information,
please apply to a tax adviser or use IRS or State
instructions.
Table
of US State Income Tax Rates For 2007
There
are two or more tax brackets in many cases; just
the outside rates and bracket levels are given
in the table. For more precise information refer
to a tax adviser or to state tax authorities.
| US
State Income Tax For Individuals - 2007 |
| State |
Income
Tax (Range) % |
Brackets
($) |
Comments |
Federal
Tax Deductible? |
| Alabama |
2.0-5.0 |
500-3,000 |
|
Yes |
| Alaska |
none |
|
|
No |
| Arizona |
2.59-4.57 |
10,000-150,000 |
|
No |
| Arkansas |
1.0-7.0 |
3,599-30,100 |
|
No |
| California |
1.0-9.3 |
6,622-43,468 |
|
No |
| Colorado |
4.63 |
flat
rate |
|
No |
| Connecticut |
3.0-5.0 |
|
The
personal exemption is 12,750 |
No |
| Delaware |
2.2-5.95 |
5,000-60,000 |
|
No |
| Florida |
None |
|
|
No |
| Georgia |
1.0-6.0 |
750-7,000 |
|
No |
| Hawaii |
1.4-8.25 |
2,400
- 48,000 |
|
No |
| Idaho |
1.6-7.8 |
1,198-23,964 |
|
No |
| Illinois |
3.0 |
flat
rate |
|
No |
| Indiana |
3.4 |
flat
rate |
|
No |
| Iowa |
0.36-8.98 |
1,269-57,106 |
|
Yes
(50%) |
| Kansas |
3.5-6.45 |
15,000-30,000 |
Plus
3.5% over 50,000 |
No |
| Kentucky |
2.0-6.0 |
3,000-75,000 |
|
No |
| Louisiana |
2.0-6.0 |
12,500-25,000 |
|
Yes |
| Maine |
2.0-8.5 |
4,550-18,250 |
|
No |
| Maryland |
2.0-4.75 |
1,000-3,000 |
|
No |
| Massachusetts |
5.3 |
flat
rate |
|
No |
| Michigan |
3.9 |
flat
rate |
|
No |
| Minnesota |
5.35-7.85 |
20,310-69,991 |
|
No |
| Mississippi |
3.0
- 5.0 |
5,000-10,000 |
|
No |
| Missouri |
1.5-6.0 |
1,000-9,000 |
|
Yes |
| Montana |
1.0-6.9 |
2,300-14,500 |
|
Yes |
| Nebraska |
2.56-6.84 |
2,400-27,001 |
|
No |
| Nevada |
none |
|
|
|
| New
Hampshire |
none |
|
dividends
and interest are taxed |
No |
| New
Jersey |
1.4-8.97 |
20,000-500,000 |
|
No |
| New
Mexico |
1.7-5.3 |
5,500-16,000 |
|
No |
| New
York |
4.0-6.85 |
8,000-500,000 |
|
No |
| North
Carolina |
6.0-8.0 |
12,750-120,000 |
|
No |
| North
Dakota |
2.1-5.54 |
30,650-336,500 |
|
No |
| Ohio |
0.649-6.555 |
5,000-200,000 |
|
No |
| Oklahoma |
0.5-5.65 |
1,000-10,000 |
|
Yes |
| Oregon |
5.0-9.0 |
2,650-6,550 |
|
Yes |
| Pennsylvania |
3.07 |
flat
rate |
|
No |
| Rhode
Island |
|
|
25%
of federal tax liability |
No |
| South
Carolina |
2.5-7.0 |
2,570-12,850 |
|
No |
| South
Dakota |
None |
|
|
No |
| Tennessee |
|
|
dividends
and interest are taxed |
No |
| Texas |
none |
|
|
No |
| Utah |
2.3-6.98 |
863-4,313 |
|
Yes |
| Vermont
|
3.6-9.5 |
30,650-336,551 |
|
No |
| Virginia |
2.0-5.75 |
3,000-17,000 |
|
No |
| West
Virginia |
3.0-6.5 |
10,000-60,000 |
|
No |
| Wisconsin |
4.0-6.75 |
9,160-137,411 |
|
No |
| Washington |
none |
|
|
|
| Washington
DC |
4.5-8.7 |
10,000-40,000 |
|
No |
| Wyoming |
none |
|
|
|
|
