Topic:
INCOME TAX; STATISTICAL INFORMATION;
Location:
TAXES - INCOME;

OLR Research Report


May 10, 2005

 

2005-R-0472

STATE INCOME TAX RATES

By: Judith Lohman, Chief Analyst

You asked for the income tax rates and tax brackets in states with personal income taxes.

SUMMARY

Of the 42 states with broad-based personal income taxes, 34 states and the District of Columbia have progressive taxes and seven have flat taxes. Two additional states, New Hampshire and Tennessee, tax only interest and dividend income and do so at a flat rate

Progressive income taxes have two or more income brackets with higher tax rates on income over certain thresholds. The number of tax brackets ranges from two in Connecticut to 10 in Missouri. New Jersey is the only state to have a different number of brackets based on filing status. New Jersey has seven tax brackets for married taxpayers filing jointly and heads of household and six for singles and married couples filing separately.

Of the 34 states and the District of Columbia that have tax rates with brackets, Connecticut has the second lowest top rate (5%). Only Maryland's is lower at 4.75%. Mississippi and Alabama also have top rates of 5%. The 10 states with the highest top bracket rates are: Vermont (9.5%), California (9.3%), District of Columbia and Oregon (9.0%), Iowa (8.98%), New Jersey (8.97%), Maine (8.5%), Hawaii and North Carolina (8.25%), and Minnesota (7.85%).

Twenty-five states have lower tax rates for their lowest brackets than Connecticut's 3%. The 10 states that start at the lowest rates are: Iowa (0.36%); Oklahoma (0.5%); Ohio (0.743%); Arkansas, California, Georgia, and Montana (1%); New Jersey (1.4%); and Missouri (1.5%). Although Connecticut's lowest rate is relatively high, its filing threshold is also the higher than any other state's.

The tables below show the income tax rates, tax brackets, and filing thresholds for the 34 states and the District of Columbia that have progressive tax rates. States with flat taxes and those that tax only certain types of income are listed at the end of this report. The rates reported here were those in effect on January 1, 2005. Information comes from Commerce Clearinghouse, a multistate tax information service.

STATES WITH PROGRESSIVE INCOME TAX RATES

Alabama

 

Married Filing Jointly

Single, Head of Household, Married Filing Separately

FILING THRESHOLD

$3,750

$1,875

TAX RATES

TAXABLE INCOME

From

To

From

To

2.0%

$0

$1,000

0

$500

4.0%

$1,001

6,000

501

3,000

5.0%

Over $6,000

Over $3,000

Arizona

 

Married Filing Jointly

Head of Household

Single, Married Filing Separately

FILING THRESHOLD

$11,000

$5,500

$5,500

TAX RATES

TAXABLE INCOME

From

To

From

To

From

To

2.87%

0

$20,000

0

$20,000

0

$10,0000

3.20%

$20,001

50,000

$20,001

50,000

$10,001

25,000

3.74%

50,001

100,000

50,001

100,000

25,001

50,000

4.72%

100,001

300,000

100,001

300,000

50,001

150,000

5.04%

Over $300,000

Over $300,000

Over $150,000

Arkansas

 

All

FILING THRESHOLD

$15,500- Married filing jointly

$12,100–Head of Household

$7,800–Single

$3,999-Married filing separately

TAX RATES

TAXABLE INCOME

From

To

1.0%

0

$3,400

2.5%

$3,401

6,799

3.5%

6,800

10,299

4.5%

10,300

17,099

6.0%

17,100

28,499

7.0%

Over $28,500

California

 

Married Filing Jointly

Head of Household

Single, Married Filing Separately

FILING THRESHOLD

Varies according to age and number of dependents

TAX RATES

TAXABLE INCOME

From

To

From

To

From

To

1.0%

0

$12,294

0

$12,300

0

$6,147

2.0%

$12,295

2,142

$12,301

29,143

$6,148

14,571

4.0%

29,143

45,994

29,144

37,567

14,572

22,997

6.0%

45,995

63,850

37,568

46.594

22,998

31,925

8.0%

63,851

80,692

46,595

54,918

31,926

40,346

9.3%

Over $80,692

Over $54,918

Over $40,346

Connecticut

 

Married Filing Jointly

Head of Household

Single, Married Filing Separately

FILING THRESHOLD

$24,000

$16,000

$12,500 – Single

$12,000 - Married filing separately

TAX RATES

TAXABLE INCOME

From

To

From

To

From

To

3.0%

0

$20,000

0

$16,000

0

$10,000

5.0%

Over $20,000

Over $16,000

Over $10,000

Delaware

 

All

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

2.2%

$2,000

$5,000

3.9%

5,001

10,000

4.8%

10,001

20,000

5.2%

20,001

25,000

5.5%

25,001

60,000

5.95%

Over $60,000

District of Columbia

 

All

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

5.0%

0

$10,000

7.5%

$10,001

30,000

9.0%

Over $30,000

Georgia

 

Married Filing Jointly,

Head of Household

Married Filing Separately

Single

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

From

To

1.0%

0

$1,000

0

$500

0

$750

2.0%

$1,001

3,000

$501

1,500

$751

2,250

3.0%

3,001

5,000

1,501

2,400

2,251

3,750

4.0%

5,001

7,000

2,501

3,500

3,751

5,250

5.0%

7,001

10,000

3,501

5,000

5,251

7,000

6.0%

Over $10,000

Over $5,000

Over $7,000

Hawaii

 

Married Filing Jointly

Head of Household

Single, Married Filing Separately

FILING THRESHOLD

If gross income exceeds personal exemptions and standard deductions or if doing business in Hawaii.

TAX RATES

TAXABLE INCOME

From

To

From

To

From

To

1.4%

0

$4,000

0

$3,000

0

$2,000

3.2%

$4,001

8,000

$3,001

6,000

$2,001

4,000

5.5%

8,001

16,000

6,001

12,000

4,001

8,000

6.4%

16,001

24,000

12,001

18,000

8,001

12,000

6.8%

24,001

32,000

18,001

24,000

12,001

16,000

7.2%

32,001

40,000

24,001

30,000

16,001

20,000

7.6%

40,001

60,000

30,001

45,000

20,001

30,000

7.9%

60,001

80,000

45,001

60,000

30,001

40,000

8.25%

Over $80,000

Over $60,000

Over $40,000

Idaho

 

Married Filing Jointly, Head of Household

Single, Married Filing Separately

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

1.6%

$1

$2,258

$1

$1,129

3.6%

2,259

4,515

1,130

2,258

4.1%

4,516

6,773

2,259

3,387

5.1%

6,774

9,031

3,388

4,515

6.1%

9,032

11,288

4,516

5,644

7.1%

11,289

16,933

5,645

8,466

7.4%

16,934

45,153

8,467

22,577

7.8%

Over $45,153

Over $22,577

Iowa

 

All

FILING THRESHOLD

Iowa resident: Net income over $9,000 if single; $13,000 for other filing status; $5,000 if claimed as a dependent

Nonresident or part-year resident: Iowa source income over $1,000

TAX RATES

TAXABLE INCOME

From

To

0.36%

0

$1,242

0.72%

$1,243

2,484

2.43%

2,485

4,968

4.5%

4,969

11,178

6.12%

11,179

18,630

6.48%

18,631

24,840

6.8%

24,841

37,260

7.92%

37,261

55,890

8.98%

Over $55,890

Kansas

 

Married Filing Jointly

Single, Head of Household, Married Filing Separately

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

3.5%

0

$30,000

0

$15,000

6.25%

$30,001

60,000

$15,001

30,000

6.45%

Over $60,000

Over $30,000

Kentucky

 

All

FILING THRESHOLD

$5,000

TAX RATES

TAXABLE INCOME

From

To

2.0%

0

$3,000

3.0%

$3,001

4,000

4.0%

4,001

5,000

5.0%

5,001

8,000

6.0%

Over $8,000

Louisiana

 

Married Filing Jointly

Single, Head of Household, Married Filing Separately

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

2.0%

0

$25,000

0

$12,500

4.0%

$25,001

50,000

$12,501

25,000

6.0%

Over $50,000

Over $25,000

Maine

 

Married Filing Jointly

Head of Household

Single, Married Filing Separately

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

From

To

2.0%

0

$8,900

0

$6,650

0

$4,450

4.5%

$8,901

17,700

$6,651

13,250

$4,451

8,850

7.0%

17,701

35,450

13,251

26,600

8,851

17,700

8.5%

Over $35,450

Over $26,600

Over $17,700

Maryland

 

All

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

2.0%

0

$1,000

3.0%

$1,001

2,000

4.0%

2,001

3,000

4.75%

Over $3,000

Minnesota

 

Married Filing Jointly

Single

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

5.35%

0

$29,070

0

$19,890

7.05%

$29,071

115,510

$19,891

65,330

7.85%

Over $115,510

Over $65,330

 

Head of Household

Married Filing Separately

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

5.35%

0

$24,490

0

$14,540

7.05%

$24,491

98,390

$14,541

57,760

7.85%

Over $98,390

Over $57,760

Mississippi

 

All

FILING THRESHOLD

$16,600 – Married filing jointly

$12,900 – Head of household

$8,300 – Single, Married filing separately

TAX RATES

TAXABLE INCOME

From

To

3.0%

0

$5,000

4.0%

$5,001

10,000

5.0%

Over $10,000

Missouri

 

All

FILING THRESHOLD

Required to file a federal return and, if a Missouri resident, have at least $1,200 of Missouri income and, if a nonresident, have at least $600 of income from Missouri sources.

TAX RATES

TAXABLE INCOME

From

To

1.5%

0

$1,000

2.0%

$1,001

2,000

2.5%

2,001

3,000

3.0%

3,001

4,000

3.5%

4,001

5,000

4.0%

5,001

6,000

4.5%

6,001

7,000

5.0%

7,001

8,000

5.5%

8,001

9,000

6.0%

Over $9,000

Montana

 

All

FILING THRESHOLD

$6,880- Married filing jointly, Head of household

$3,440–Single, Married filing separately

TAX RATES

TAXABLE INCOME

From

To

1.0%

0

$2,300

2.0%

$2,301

4,100

3.0%

4,101

6,200

4.0%

6,201

8,400

5.0%

8,401

10,800

6.0%

10,801

13,900

6.9%

Over $13,901

Nebraska

 

Married Filing Jointly

Single

FILING THRESHOLD

Required to file a federal return or have at least $5,000 of Nebraska adjustments to federal AGI, including non-Nebraska state and local bond interest exempt from federal tax.

TAX RATES

TAXABLE INCOME

From

To

From

To

2.56%

0

$4,000

0

$2,400

3.57%

$4,001

30,000

$2,401

17,000

5.12%

30,001

46,750

17,001

26,500

6.84%

Over 46,750

Over $26,500

TAX RATES

TAXABLE INCOME

From

To

From

To

2.56%

0

$3,800

0

$2,000

3.57%

$3,801

24,000

$2,001

15,000

5.12%

24,001

35,000

15,001

23,375

6.84%

Over $35,000

Over $23,375

New Jersey

 

Married Filing Jointly; Head of Household

Single, Married Filing Separately

FILING THRESHOLD

$20,000

$10,000

TAX RATES

TAXABLE INCOME

TAX RATES

TAXABLE INCOME

From

To

From

To

1.4%

0

$20,000

1.4%

0

$20,000

1.75%

$20,001

50,000

1.75%

$20,001

35,000

2.45%

50,001

70,000

3.5%

35,001

40,000

3.5%

70,001

80,000

5.525%

40,001

75,000

5.525%

80,001

150,000

6.37%

75,001

500,000

6.37%

150,000

500,000

8.97%

Over $ 500,000

8.97%

Over $500,000

   

New Mexico

 

Married Filing Jointly

Single

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

1.7%

0

$8,000

0

$5,500

3.2%

$8,001

16,000

$5,501

11,000

4.7%

16,001

24,000

11,001

16,000

6.0%

Over $24,000

Over $16,000

 

Head of Household

Married Filing Separately

TAX RATES

TAXABLE INCOME

From

To

From

To

1.7%

0

$7,000

0

$4,000

3.2%

$7,001

14,000

$4,001

8,000

4.7%

14,001

20,000

8,001

12,000

6.0%

Over $20,000

Over $12,000

New York

 

Married Filing Jointly

Head of Household

Single, Married Filing Separately

FILING THRESHOLD

Required to file a federal return or having federal AGI plus New York additions or more than $4,000 ($3,000 if single and can be claimed as a dependent), if subject to minimum tax, or if subject to separate tax on lump-sum distributions.

TAX RATES

TAXABLE INCOME

From

To

From

To

From

To

4.0%

0

$16,000

0

$11,000

0

$8,000

4.5%

$16,001

22,000

$11,001

15,000

$8,001

11,000

5.25%

22,001

26,000

15,001

17,000

11,001

13,000

5.9%

26,001

40,000

17,001

30,000

13,001

20,000

6.85%

40,001

150,000

30,001

125,000

20,001

100,000

7.25%

150,001

500,000

125,001

500,000

100,001

500,000

7.7%

Over $500,000

Over $500,000

Over $500,000

North Carolina

 

Married Filing Jointly, Head of Household

Single

Married Filing Separately

FILING THRESHOLD

$10,000-Married filing jointly; $6,900–Head of household

$5,500

$2,500

TAX RATES

TAXABLE INCOME

From

To

From

To

From

To

6.0%

0

$21,250

0

$12,750

0

$10,625

7.0%

$21,251

100,000

$12,751

60,000

$10,626

50,000

7.75%

100,001

200,000

60,001

120,000

50,001

100,000

8.25%

Over $200,000

Over $120,000

Over $100,000

North Dakota

 

Married Filing Jointly

Single

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

2.1%

0

$49,600

0

$29,700

3.92%

$49,601

119,950

$29,701

71,950

4.34%

119,951

182,800

71,951

150,150

5.04%

182,801

326,450

150.151

326,450

5.54%

Over $326,450

Over $326,450

 

Head of Household

Married Filing Separately

TAX RATES

TAXABLE INCOME

From

To

From

To

2.1%

0

$39,800

0

$24,800

3.92%

$39,801

102,800

$24,801

59,975

4.34%

102,801

166,450

59,976

91,400

5.04%

166,451

326,450

91,401

163,225

5.54%

Over $326,450

Over $163,225

Ohio

 

All

FILING THRESHOLD

Single: under 65, federal AGI of $4,099; over 65, $8,499

Married filing jointly: under 65, $7,699; over 65, $11,049

TAX RATES

TAXABLE INCOME

From

To

0.743%

0

$5,000

1.486%

$5,001

10,000

2.972%

10,001

15,000

3.715%

15,001

20,000

4.457%

20,001

40,000

5.201%

40,001

80,000

5.943%

80,001

100,000

6.9%

100,001

200,000

7.5%

Over $200,000

Oklahoma

 

Married Filing Jointly, Head of Household

Single, Married Filing Separately

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

0.5%

0

$2,000

0

$1,000

1.0%

$2,001

5,000

$1,001

2,500

2.0%

5,001

7,500

2,501

3,750

3.0%

7,501

9,800

3,751

4,900

4.0%

9,801

12,200

4,901

6,200

5.0%

12,201

15,000

6,201

7,700

6.0%

15,001

21,000

7,701

10,000

6.65%

Over $20,000

Over $10,000

Oregon

 

Married Filing Jointly, Head of Household

Single, Married Filing Separately

FILING THRESHOLD

Federal or depends on age and filing status

TAX RATES

TAXABLE INCOME

From

To

From

To

5.0%

0

$5,200

0

$2,600

7.0%

5,201

13,000

2,601

6,500

9.0%

Over $13,000

Over $6,500

South Carolina

 

All

FILING THRESHOLD

Federal

If single and age 65 or over: federal gross income filing amount plus $15,000.

If married filing jointly and both spouses age 65 or over, federal gross income filing amount plus $30,000.

TAX RATES

TAXABLE INCOME

From

To

2.5%

0

$2,530

3.0%

$2,531

5,060

4.0%

5,061

7,590

5.0%

7,591

10,120

6.0%

10,121

12,650

7.0%

Over $12,650

Utah

 

Married Filing Jointly, Head of Household

Single, Married Filing Separately

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

2.3%

0

$1,726

0

$863

3.3%

$1,727

3,450

$864

1,726

4.2%

3,451

5,176

1,727

2,588

5.2%

5,177

6,900

2,589

3,450

6.0%

6,901

8,626

3,451

4,313

7.0%

Over $8,626

Over $4,313

Vermont

 

Married Filing Jointly

Single

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

3.6%

0

$48,500

0

$29,050

7.2%

$48,501

117,250

$29,051

70,350

8.5%

117,251

178,650

70,351

146,750

9.0%

178,651

319,000

146,751

319,100

9.5%

Over $319,000

Over $319,000

 

Head of Household

Married Filing Separately

TAX RATES

TAXABLE INCOME

From

To

From

To

3.6%

0

$38,900

0

$24,250

7.2%

$38,901

100,500

$24,251

58,625

8.5%

100,501

162,700

58,626

89,325

9.0%

162,701

319,100

89,326

159,550

9.5%

Over $319,000

Over $159,550

Virginia

 

All

FILING THRESHOLD

$5,500 - Single

$8,000 - Married filing jointly

$4,000 - Married filing separately

TAX RATES

TAXABLE INCOME

From

To

2.0%

0

$3,000

3.0%

$3,001

5,000

5.0%

5,001

17,000

5.75%

Over $17,000

West Virginia

 

Married Filing Jointly, Head of Household, Single

Married Filing Separately

FILING THRESHOLD

Same as federal

TAX RATES

TAXABLE INCOME

From

To

From

To

3.0%

0

$10,000

0

$5,000

4.0%

$10,001

25,000

$5,001

12,500

4.5%

25,001

40,000

12,501

20,000

6.0%

40,001

60,000

20,001

30,000

6.5%

Over $60,000

Over $30,000

Wisconsin

 

Married Filing Jointly

Married Filing Separately

Single, Head of Household

FILING THRESHOLD

$18,000

$9,000

$9,000 - Single

$10,970 - Head of Household

TAX RATES

TAXABLE INCOME

From

To

From

To

From

To

4.6%

0

$11,780

0

$5,890

0

$8,840

6.15%

$11,781

23,570

$5,891

11,780

$8,841

17,680

6.5%

23,571

176,770

11,781

88,390

17,681

132,580

6.75%

Over $176,770

Over $88,390

Over $132,580

STATES WITH FLAT INCOME TAX RATES

State

Tax Rate

Colorado

4.63% of federal taxable income, regardless of filing status.

Illinois

3% of federal adjusted gross income with modifications, regardless of filing status.

Indiana

3.4% of federal adjusted gross income, regardless of filing status.

Massachusetts

5.3% for most Massachusetts taxable income; 12% for short-term capital gains.

Michigan

3.9% of Michigan taxable income, regardless of filing status.

Pennsylvania

3.07% of taxable compensation; net profits; net gains from sale of property; rent; royalties, patents, or copyrights; income from estates or trusts; dividends; interest; and winnings.

Rhode Island

25% of the federal income tax rates, including capital gains rates and any other special federal rates for other types of income, that were in effect immediately prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001.

STATES WITH INTEREST AND DIVIDENDS TAXES

STATE

TAX RATE

New Hampshire

5% on interest and dividends only, regardless of filing status.

Tennessee

6% on dividends and interest income.

JL:ts