State taxation levels

A useful comparison of taxation in all 50 states from Bloomberg via ZeroHedge.com.

Here are the highest “taxing” states in the US:

  1. California 13.3%
  2. Hawaii 11%
  3. Oregon 9.9% (a, b)
  4. Minnesota 9.85%
  5. Iowa 8.98% (b)
  6. New Jersey 8.97% (a)
  7. Vermont 8.95% (tie)
  8. Washington, D.C. 8.95% (tie)
  9. New York 8.82% (a, c)
  10. Maine 7.95%

a) Local income taxes are excluded.
b) Allows “some or all federal income tax paid to be deducted from state taxable income,” according to the Tax Foundation.
c) The Tax Foundation notes that New York has “‘tax benefit recapture, by which many high-income taxpayers pay their top tax rate on all income, not just on amounts above the bracket threshold.”

And the lowest:

  1. Pennsylvania 3.07%* (a)
  2. North Dakota 3.22%
  3. Indiana 3.4%* (a)
  4. Michigan 4.25%* (a)
  5. Arizona 4.54%
  6. Colorado 4.63%* ** (d)
  7. Kansas 4.8% (a)
  8. New Mexico 4.9%
  9. Alabama 5% (a, b): tied with Illinois*, Mississippi, New Hampshire* (c) and Utah

*flat rate
**of federal adjusted gross income with modifications

a) Local income taxes are excluded.
b) Allows “some or all federal income tax paid to be deducted from state taxable income,” according to the Tax Foundation.
c) Tax applies to interest and dividend income only.
(d) of federal taxable income

 

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Categories: Hmm, Taxation

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