The state income tax reference compares 2025 individual income tax rates across all 50 US states and Washington D.C. Includes top marginal rates, flat-tax structures, capital gains treatment, and no-income-tax states.
State Income Tax Rates 2025
| State | Type | Top Rate / Flat Rate | Notes |
|---|
How to Use the State Income Tax Reference
The state income tax reference covers the three main structures: no tax, flat rate, and graduated brackets. Most states conform broadly to federal definitions of income but differ significantly in rates, brackets, deductions, and exemptions.
Graduated vs. Flat Rate States
Most states use graduated brackets — lower income is taxed at lower rates, higher income at higher rates. Flat-rate states apply one rate to all taxable income regardless of amount. In recent years, several states have converted from graduated to flat structures (Georgia, Iowa, Mississippi, North Carolina), a trend continuing as of 2025.
What "Top Rate" Means
The "top rate" is the highest marginal rate applied to the highest income bracket. It doesn't mean you pay that rate on all income — only on the portion above the bracket threshold. For example, California's 13.3% applies only to income over $1 million; most middle-income Californians pay 9.3% on their top dollars.
State vs. Total Tax Burden
Income tax is only one component of your state tax burden. States with no income tax often offset this with higher property taxes, sales taxes, or other levies. Texas (no income tax) has some of the highest property taxes in the nation. Always consider total tax burden when evaluating state tax climates for relocation or business decisions.
FAQ
Is this state income tax reference free?
Yes, completely free with no signup. Search all 50 states for current 2025 income tax rates and structures.
Which states have no income tax?
Nine states have no individual income tax: Alaska, Florida, Nevada, New Hampshire (taxes interest/dividends only through 2024), South Dakota, Tennessee (taxes interest/dividends only through 2022, now eliminated), Texas, Washington (has capital gains tax since 2023), and Wyoming.
Which states have flat income tax rates?
As of 2025, several states use a flat rate: Arizona (2.5%), Colorado (4.4%), Georgia (5.49%), Idaho (5.8%), Illinois (4.95%), Indiana (3.15%), Kentucky (4.0%), Massachusetts (5.0%), Michigan (4.25%), Mississippi (4.7%), North Carolina (4.5%), Pennsylvania (3.07%), and Utah (4.65%).
What is the highest state income tax rate?
California has the highest top marginal rate at 13.3% (on income over $1M; 12.3% on $698K–$1M for single filers). Hawaii (11%), New Jersey (10.75%), Oregon (9.9%), and Minnesota (9.85%) also have high top rates. These rates apply only to the highest income brackets.
Do no-income-tax states make up revenue elsewhere?
Generally yes. States without income taxes typically have higher sales taxes, property taxes, or other revenue sources. Texas has high property taxes; Washington has high sales taxes; Nevada relies heavily on gaming revenue. The total tax burden varies significantly and isn't always lower in no-income-tax states.