Income Tax Rates By State In 2023
Overview of Income Tax Rates Across the United States
Income tax rates can vary greatly from state to state. Some states, such as Wyoming and Florida, do not have any income taxes, while a handful of states have high income taxes of up to 13%. In 2023, the average income tax rate across the United States is 8.7%, with some states having lower taxes and some having higher taxes. This article will provide an overview of income tax rates by state in 2023.
Tax Rates by State
Alabama: Alabama has a flat income tax rate of 5%.
Alaska: Alaska has no income tax.
Arizona: Arizona has a flat income tax rate of 4.54%.
Arkansas: Arkansas has a flat income tax rate of 6.6%.
California: California has a progressive income tax rate, ranging from 1% to 13.3%.
Colorado: Colorado has a flat income tax rate of 4.63%.
Connecticut: Connecticut has a flat income tax rate of 6.99%.
Delaware: Delaware has a flat income tax rate of 6.6%.
District of Columbia: The District of Columbia has a flat income tax rate of 8.95%.
Florida: Florida has no income tax.
Georgia: Georgia has a flat income tax rate of 6%.
High Income Tax States in 2023
The states with the highest income tax rates in 2023 are California, Hawaii, and Oregon. California has a progressive income tax rate with a top rate of 13.3%, while Hawaii and Oregon have flat rates of 11% and 9.9%, respectively. Other states with relatively high income taxes are Vermont (9.5%), Minnesota (9.85%), Iowa (8.98%), and New Jersey (8.97%).
Low Income Tax States in 2023
The states with the lowest income tax rates in 2023 are Wyoming and Florida, which do not impose any income tax. Other states with relatively low income taxes are South Dakota (4%), Nevada (4.6%), Texas (5.25%), and Washington (5.5%).
Conclusion
Income tax rates vary greatly from state to state. In 2023, the average income tax rate across the United States is 8.7%, with some states having lower taxes and some having higher taxes. Wyoming and Florida do not impose any income tax, while California, Hawaii, and Oregon have the highest income tax rates. Knowing the income tax rate for each state can help individuals and businesses plan their finances and ensure that they are not overpaying or underpaying.