Last Updated on October 21, 2022 by Mark Ferguson
Not every state in the US has the same state income taxes! Many states have zero income taxes (Texas) while others have extremely high income taxes (California)! It is not just income taxes that vary by state. Different states have different property tax rates, different vehicle tax rates, different sales tax rates, and more. Income taxes can have a huge impact on the money you keep, especially if you are a high earner. This is why you often see very wealthy people move to states with low or no income taxes. We have put together a comprehensive list of the property taxes in each state, which can be really simple in some cases or really complicated in others.
One important thing to note however is how exactly graduated-rate state income taxes work. A common misconception is that once your income reaches the next bracket, your entire income will be taxed at a higher rate. This is not the case. Only the money you make above the threshold will be taxed at the higher rate.
If you would like to see the property tax rates in each state check this out.
States with No State Income Tax
- Alaska
- Florida
- Nevada
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
States with Flat-Rate State Income Tax
- Colorado – 4.55%
- Illinois – 4.95%
- Indiana – 3.23%
- Kentucky – 5%
- Massachusetts – 5%
- Michigan – 4.25%
- New Hampshire – 5%
- Only applies to dividends and interest
- North Carolina – 5.25%
- Pennsylvania – 3.07%
- Utah – 4.95%
States with Graduated-Rate State Income Tax
Alabama
| Bracket | Rate |
| 0-$500 | 2% |
| $500-$3000 | 4% |
| >$3000 | 5% |
Arizona
| Bracket | Rate |
| 0-$27,272 | 2.59% |
| $27,272-$54,544 | 3.34% |
| $54,544-$163,632 | 4.17% |
| $163,632-$250,000 | 4.5% |
| >$250,000 | 8% |
Arkansas
| Bracket | Rate |
| 0-$4000 | 2% |
| $4000-$8000 | 4% |
| >$8000 | 5.9% |
California
| Bracket | Rate |
| 0-$8,932 | 1% |
| $8,932-$21,175 | 2% |
| $21,175-$33,421 | 4% |
| $33,421-$46,394 | 6% |
| $46,394-$58,634 | 8% |
| $58,634-$299,508 | 9.3% |
| $299,508-$359,407 | 10.3% |
| $359,407-$599,012 | 11.3% |
| $599,012-$1,000,000 | 12.3% |
| >$1,000,000 | 13.3% |
Connecticut
| Bracket | Rate |
| 0-$10,000 | 3% |
| $10,000-$50,000 | 5% |
| $50,000-$100,000 | 5.5% |
| $100,000-$200,000 | 6% |
| $200,000-$250,000 | 6.5% |
| $250,000-$500,000 | 6.9% |
| >$500,000 | 6.99% |
Delaware
| Bracket | Rate |
| $2,000-$5,000 | 2.2% |
| $5,000-$10,000 | 3.9% |
| $10,000-$20,000 | 4.8% |
| $20,000-$25,000 | 5.2% |
| $25,000-$60,000 | 5.55% |
| >$60,000 | 6.6% |
Georgia
| Bracket | Rate |
| 0-$750 | 1% |
| $750-$2,250 | 2% |
| $2,250-$3,750 | 3% |
| $3,750-$5,250 | 4% |
| $5,250-$7,000 | 5% |
| >$7,000 | 5.75% |
Hawaii
| Bracket | Rate |
| 0-$2,400 | 1.4% |
| $2,400-$4,800 | 3.2% |
| $4,800-$9,600 | 5.5% |
| $9,600-$14,400 | 6.4% |
| $14,400-$19,200 | 6.8% |
| $19,200-$24,000 | 7.2% |
| $24,000-$36,000 | 7.6% |
| $36,000-$48,000 | 7.9% |
| $48,000-$150,000 | 8.25% |
| $150,000-$175,000 | 9% |
| $175,000-$200,000 | 10% |
| >$200,000 | 11% |
Idaho
| Bracket | Rate |
| 0-$1,568 | 1.125% |
| $1,568-$3,136 | 3.125% |
| $3,136-$4,704 | 3.625% |
| $4,704-$6,272 | 4.6255 |
| $6,272-$7,840 | 5.625% |
| $7,840-$11,760 | 6.625% |
| >$11,760 | 6.925% |
Iowa
| Bracket | Rate |
| 0-$1,676 | 0.33% |
| $1,676-$3,352 | 0.67% |
| $3,352-$6,704 | 2.25% |
| $6,704-$15,084 | 4.14% |
| $15,084-$25,140 | 5.63% |
| $25,140-$33,520 | 5.96% |
| $33,520-$50,280 | 6.25% |
| $50,280-$75,420 | 7.44% |
| >$75,420 | 8.53% |
Kansas
| Bracket | Rate |
| 0-$15,000 | 3.1% |
| $15,000-$30,000 | 5.25% |
| >$30,000 | 5.7% |
Louisiana
| Bracket | Rate |
| 0-$12,500 | 2% |
| $12,500-$50,000 | 4% |
| >$50,000 | 6% |
Maine
| Bracket | Rate |
| 0-$22,450 | 5.8% |
| $22,450-$53,150 | 6.75% |
| >$53,150 | 7.15% |
Maryland
| Bracket | Rate |
| 0-$1,000 | 2% |
| $1,000-$2,000 | 3% |
| $2,000-$3,000 | 4% |
| $3,000-$100,000 | 4.75% |
| $100,000-$125,000 | 5% |
| $125,000-$150,000 | 5.25% |
| $150,000-$250,000 | 5.5% |
| >$250,000 | 5.75% |
Minnesota
| Bracket | Rate |
| 0-$27,230 | 5.35% |
| $27,230-$89,440 | 6.8% |
| $89,440-$166,040 | 7.85% |
| >$166,040 | 9.85% |
Mississippi
| Bracket | Rate |
| $4,000-$5,000 | 3% |
| $5,000-$10,000 | 4% |
| >$10,000 | 5% |
Missouri
| Bracket | Rate |
| $107-$1,073 | 1.5% |
| $1,073-$2,146 | 2% |
| $2,146-$3,219 | 2.5% |
| $3,219-$4,292 | 3% |
| $4,292-$5,365 | 3.5% |
| $5,365-$6,438 | 4% |
| $6,438-$7,511 | 4.5% |
| $7,511-$8,584 | 5% |
| >$8,584 | 5.4% |
Montana
| Bracket | Rate |
| 0-$3,100 | 1% |
| $3,100-$5,500 | 2% |
| $5,500-$8,400 | 3% |
| $8,400-$11,300 | 4% |
| $11,300-$14,500 | 5% |
| $14,500-$18,700 | 6% |
| >$18,700 | 6.9% |
Nebraska
| Bracket | Rate |
| 0-$3,340 | 2.46% |
| $3,340-$19,990 | 3.51% |
| $19,990-$32,210 | 5.01% |
| >$32,210 | 6.84% |
New Jersey
| Bracket | Rate |
| 0-$20,000 | 1.4% |
| $20,000-$35,000 | 1.75% |
| $35,000-$40,000 | 3.5% |
| $40,000-$75,000 | 5.525% |
| $75,000-$500,000 | 6.37% |
| $500,000-$1,000,000 | 8.97% |
| >$1,000,000 | 10.75% |
New Mexico
| Bracket | Rate |
| 0-$5,500 | 1.7% |
| $5,500-$11,000 | 3.2% |
| $11,000-$16,000 | 4.7% |
| $16,000-$210,000 | 4.9% |
| >$210,000 | 5.9% |
New York
| Bracket | Rate |
| 0-$8,500 | 4% |
| $8,500-$11,700 | 4.5% |
| $11,700-$13,900 | 5.25% |
| $13,900-$21,400 | 5.9% |
| $21,400-$80,650 | 5.97% |
| $80,650-$215,400 | 6.33% |
| $215,400-$1,077,550 | 6.85% |
| >$1,077,550 | 8.82% |
North Dakota
| Bracket | Rate |
| 0-$40,125 | 1.1% |
| $40,125-$97,150 | 2.04% |
| $97,150-$202,650 | 2.27 |
| $202,650-$440,600 | 2.64% |
| >$440,600 | 2.9% |
Ohio
| Bracket | Rate |
| $22,150-$44,250 | 2.85% |
| $44,250-$88,450 | 3.326% |
| $88,450-$110,650 | 3.802% |
| $110,650-$221,300 | 4.413% |
| >$221,300 | 4.797% |
Oklahoma
| Bracket | Rate |
| 0-$1,000 | 0.5% |
| $1,000-$2,500 | 1% |
| $2,500-$3,750 | 2% |
| $3,750-$4,900 | 3% |
| $4,900-$7,200 | 4% |
| >$7,200 | 5% |
Oregon
| Bracket | Rate |
| 0-$3,650 | 4.75% |
| $3,650-$9,200 | 6.75% |
| $9,200-$125,000 | 8.75% |
| >$125,000 | 9.9% |
Rhode Island
| Bracket | Rate |
| 0-$66,200 | 3.75% |
| $66,200-$150,550 | 4.75% |
| >$150,550 | 5.99% |
South Carolina
| Bracket | Rate |
| $3,070-$6,150 | 3% |
| $6,150-$9,230 | 4% |
| $9,230-$12,310 | 5% |
| $12,310-$15,400 | 6% |
| >$15,400 | 7% |
Vermont
| Bracket | Rate |
| 0-$40,350 | 3.35% |
| $40,350-$97,800 | 6.6% |
| $97,800-$204,000 | 7.6% |
| >$204,000 | 8.75% |
Virginia
| Bracket | Rate |
| 0-$3,000 | 2% |
| $3,000-$5,000 | 3% |
| $5,000-$17,000 | 5% |
| >$17,000 | 5.75% |
West Virginia
| Bracket | Rate |
| 0-$10,000 | 3% |
| $10,000-$25,000 | 4% |
| $25,000-$40,000 | 4.5% |
| $40,000-$60,000 | 6% |
| >$60,000 | 6.5% |
Wisconsin
| Bracket | Rate |
| 0-$12,120 | 3.54% |
| $12,120-$24,250 | 4.65% |
| $24,250-$266,930 | 6.27% |
| >$266,930 | 7.65% |
District of Colombia
| Bracket | Rate |
| 0-$10,000 | 4% |
| $10,000-$40,000 | 6% |
| $40,000-$60,000 | 6.5% |
| $60,000-$350,000 | 8.5% |
| $350,000-$1,000,000 | 8.75% |
| >$1,000,000 | 8.95% |
Based off the report from the Tax Foundation.
Lowest to highest income tax based on median household income ($62,843 from 2015-2019 – US Census Bureau)
| Rank | State | Income Tax |
| 1 | North Dakota | 2.04% |
| 2 | Pennsylvania | 3.07% |
| 3 | Indiana | 3.23% |
| 4 | Ohio | 3.326% |
| 5 | Rhode Island | 3.75% |
| 6 | Arizona | 4.17% |
| 7 | Michigan | 4.25% |
| 8 | Colorado | 4.55% |
| 9 | Maryland | 4.75% |
| 10 | New Mexico | 4.9% |
| 11 | Illinois | 4.95% |
| 12 | Utah | 4.95% |
| 13 | Alabama | 5% |
| 14 | New Hampshire | 5% |
| 15 | Kentucky | 5% |
| 16 | Oklahoma | 5% |
| 17 | Massachusetts | 5% |
| 18 | Mississippi | 5% |
| 19 | North Carolina | 5.25% |
| 20 | New Jersey | 5.525% |
| 21 | Missouri | 5.4% |
| 22 | Connecticut | 5.5% |
| 23 | Kansas | 5.7% |
| 24 | Georgia | 5.75% |
| 25 | Virginia | 5.75% |
| 26 | Arkansas | 5.9% |
| 27 | New York | 5.97% |
| 28 | Louisiana | 6% |
| 29 | Wisconsin | 6.27% |
| 30 | West Virginia | 6.5% |
| 31 | Delaware | 6.6% |
| 32 | Vermont | 6.6% |
| 33 | Minnesota | 6.8% |
| 34 | Nebraska | 6.84% |
| 35 | Montana | 6.9% |
| 36 | Idaho | 6.925% |
| 37 | South Carolina | 7% |
| 38 | Maine | 7.15% |
| 39 | Iowa | 7.44% |
| 40 | Hawaii | 8.25% |
| 41 | D.C. | 8.5% |
| 42 | Oregon | 8.75% |
| 43 | California | 9.3% |
It is also important to note that alongside state income taxes, there are also federally mandated income taxes which are the same no matter what state you are in. If you are interested in learning more about getting started in real estate investing and how it ties into income taxes, click here.
Source: investfourmore.com