Individual Tax Rates by State for 2008 Tax Year

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Individual Tax Rates by State
for 2008

STATE INDIVIDUAL INCOME TAXE RATES

States with the highest tax rates (over 9.0%) are highlighted in red boxes. States with no income taxes in yellow boxes

---Tax Rates---

# of

--Income Brackets--

---Personal Exemption---

Federal Tax

State

Low

High

Brackets

Low

High

Single

Married

Child.

Ded.

ALABAMA

2.0

5.0

500

(b)

3,000

(b)

1,500

3,000

300

ALASKA

No State Income Tax

ARIZONA

2.59

4.54

10,000

(b)

150,000

(b)

2,100

4,200

2,300

ARKANSAS (a)

1.0

7.0

(e)

3,699

(b)

31,000

(b)

(c)

CALIFORNIA (a)

1.0

9.3

(w)

6,827

(b)

44,815

(b)

(c)

188

(c)

294

(c)

COLORADO

4.63

-----Flat rate-----

-----------None-----------

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CONNECTICUT

3.0

5.0

10,000

(b)

10,000

(b)

12,750

(f)

24,500

(f)

DELAWARE

2.2

5.95

5,000

60,000

110

(c)

220

(c)

110

(c)

FLORIDA

No State Income Tax

GEORGIA

1.0

6.0

750

(g)

7,000

(g)

2,700

5,400

3,000

HAWAII

1.4

8.25

2,400

(b)

48,000

(b)

1,040

2,080

1,040

IDAHO (a)

1.6

7.8

1,237

(h)

24,736

(h)

3,500

(d)

7,000

(d)

3,500

(d)

ILLINOIS

3.0

-----Flat rate-----

2,000

4,000

2,000

INDIANA

3.4

-----Flat rate-----

1,000

2,000

1,000

IOWA (a)

0.36

8.98

1,379

62,055

(c)

KANSAS

3.5

6.45

15,000

(b)

30,000

(b)

2,250

4,500

2,250

KENTUCKY

2.0

6.0

3,000

75,000

(c)

LOUISIANA

2.0

6.0

12,500

(b)

25,000

(b)

4,500

(i)

9,000

(i)

1,000

(i)

MAINE (a)

2.0

8.5

4,849

(b)

19,450

(b)

2,850

5,700

2,850

MARYLAND

2.0

5.5

1,000

500,000

2,400

4,800

2,400

MASSACHUSETTS (a)

5.3

-----Flat rate-----

4,125

8,250

1,000

MICHIGAN (a)

4.35

-----Flat rate-----

3,300

6,600

3,300

MINNESOTA (a)

5.35

7.85

21,800

(j)

71,591

(j)

3,500

(d)

7,000

(d)

3,500

(d)

MISSISSIPPI

3.0

5.0

5,000

10,000

6,000

12,000

1,500

MISSOURI

1.5

6.0

1,000

9,000

2,100

4,200

1,200

* (r)

MONTANA (a)

1.0

6.9

2,500

14,900

2,040

4,080

2,040

* (r)

NEBRASKA (a)

2.56

6.84

2,400

(k)

27,001

(k)

113

(c)

226

(c)

113

(c)

NEVADA

No State Income Tax

NEW HAMPSHIRE

State Income Tax is Limited to Dividends and Interest Income Only.

NEW JERSEY

1.4

8.97

20,000

(l)

500,000

(l)

1,000

2,000

1,500

NEW MEXICO

1.7

5.3

5,500

(m)

16,000

(m)

3,500

(d)

7,000

(d)

3,500

(d)

NEW YORK

4.0

6.85

8,000

(b)

20,000

(b)

1,000

NORTH CAROLINA (n)

6.0

7.75

12,750

(n)

60,000

(n)

2,000

4,000

2,000

NORTH DAKOTA (a)

2.1

5.54

(o)

31,850

(o)

349,701

(o)

3,500

(d)

7,000

(d)

3,500

(d)

OHIO (a)

0.618

6.24

5,000

200,000

1,450

(p)

2,900

(p)

1,450

(p)

OKLAHOMA

0.5

5.5

(q)

1,000

(q)

8,701

(q)

1,000

2,000

1,000

OREGON (a)

5.0

9.0

2,900

(b)

7,300

(b)

169

(c)

338

(c)

169

(c)

* (r)

PENNSYLVANIA

3.07

-----Flat rate-----

-----------None-----------

RHODE ISLAND

25.0% Federal tax liability (s)

---

SOUTH CAROLINA (a)

7.0

2,670

13,350

3,500

(d)

7,000

(d)

3,500

(d)

SOUTH DAKOTA

No State Income Tax

TENNESSEE

State Income Tax is Limited to Dividends and Interest Income Only.

TEXAS

No State Income Tax

UTAH

5.0

-----Flat rate-----

(t)

VERMONT (a)

3.6

9.5

32,550

(u)

357,700

(u)

3,500

(d)

7,000

(d)

3,500

(d)

VIRGINIA

2.0

5.75

3,000

17,000

930

1,860

930

WASHINGTON

No State Income Tax

WEST VIRGINIA

3.0

6.5

10,000

60,000

2,000

4,000

2,000

WISCONSIN (a)

4.6

6.75

9,700

(v)

145,460

(v)

700

1,400

700

WYOMING

No State Income Tax

DIST. OF COLUMBIA

4.0

8.5

10,000

40,000

1,675

3,350

1,675

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Source: The Federation of Tax Administrators from various sources.
(a) 16 states have statutory provision for automatic adjustment of tax brackets, personal exemption or standard deductions to the rate of inflation. Massachusetts, Michigan, Nebraska and Ohio index the personal exemption amounts only.
(b) For joint returns, the taxes are twice the tax imposed on half the income.
(c) tax credits.
(d) These states allow personal exemption or standard deductions as provided in the IRC.
(e) A special tax table is available for low income taxpayers reducing their tax payments.
(f) Combined personal exemptions and standard deduction. An additional tax credit is allowed ranging from 75% to 0% based on state adjusted gross income. Exemption amounts are phased out for higher income taxpayers until they are eliminated for households earning over $56,500.
(g) The tax brackets reported are for single individuals. For married households, the same rates apply to income brackets ranging range from $1,000 to $10,000.
(h) For joint returns, the tax is twice the tax imposed on half the income. A $10 filing tax is charge for each return and a $15 credit is allowed for each exemption.
(i) Combined personal exemption and standard deduction.
(j) The tax brackets reported are for single individual. For married couples filing jointly, the same rates apply for income under $31,860 to over $126,581. A 6.4% AMT rate is also applicable.
(k) The tax brackets reported are for single individual. For married couples filing jointly, the same rates apply for income under $4,800 to over $54,000.
(l) The tax brackets reported are for single individuals. For married couples filing jointly, the tax rates range from 1.4% to 8.97% (with 7 income brackets) applying to income brackets from $20,000 to over $500,000.
(m) The tax brackets reported are for single individuals. For married couples filing jointly, the same rates apply for income under $8,000 to over $24,000. Married households filing separately pay the tax imposed on half the income.
(n) The tax brackets reported are for single individuals. For married taxpayers, the same rates apply to income brackets ranging from $21,250 to $100,000. Lower exemption amounts allowed for high income taxpayers.
(o) The tax brackets reported are for single individuals. For married taxpayers, the same rates apply to income brackets ranging from $53,200 to $349,701. An additional $300 personal exemption is allowed for joint returns or unmarried head of households.
(p) Plus an additional $20 per exemption tax credit.
(q) The rate range reported is for single persons. For married persons filing jointly, the same rates apply to income brackets ranging from $2,000 to $15,000. The top tax rate is scheduled to fall to 5.25% for tax years after 2008.
(r) Deduction is limited to $10,000 for joint returns and $5,000 for individuals in Missouri and Montana, and to $5,600 in Oregon.
(s) Federal Tax Liability prior to the enactment of Economic Growth and Tax Relief Act of 2001. Or, taxpayers have the option of computing tax liability based on a flat 7.0% (6.5% in 2009) of gross income.
(t) Tax credits are equal to 6% of federal standard/itemized deductions (w/o state taxes paid) and 75% of Federal personal exemption amounts. The credit amount is phased out above $12,000 in income ($24,000 for joint returns).
(u) The tax brackets reported are for single individuals. For married couples filing jointly, the same rates apply for income under $54,400 to over $357,700.
(v) The tax brackets reported are for single individuals. For married taxpayers, the same rates apply to income brackets ranging from $12,930 to $193,950. An additional $250 exemption is provided for each taxpayer or spouse age 65 or over.
(w) An additional 1% tax is imposed on taxable income over $1 million.

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