State Individual Income Tax Rates and Brackets for 2023 – IOTW Report

State Individual Income Tax Rates and Brackets for 2023

Tax Foundation – Individual income taxes are a major source of state government revenue, accounting for 40 percent of state tax collections. Their prominence in public policy considerations is further enhanced by individuals being actively responsible for filing their income taxes, in contrast to the indirect payment of sales and excise taxes.

Forty-three states levy individual income taxes. Forty-one tax wage and salary income. New Hampshire exclusively taxes dividend and interest income while Washington only taxes capital gains income. Seven states levy no individual income tax at all.

Of those states taxing wages, eleven have single-rate tax structures, with one rate applying to all taxable income. Conversely, 30 states and the District of Columbia levy graduated-rate income taxes, with the number of brackets varying widely by state. Kansas, for example, is one of several states imposing a three-bracket income tax system. At the other end of the spectrum, Hawaii has 12 brackets. Top marginal rates range from Arizona’s 2.5 percent to California’s 13.3 percent.

In some states, a large number of brackets are clustered within a narrow income band. For example, Georgia’s taxpayers reach the state’s sixth and highest bracket at $7,000 in taxable income. In other states, the top rate kicks in at a much higher level of marginal income. For example, the top rate kicks in at or above $1 million in California (when the “millionaire’s tax” surcharge is included), Massachusetts, New Jersey, New York, and the District of Columbia.

Table 1 shows how each state’s individual income tax is structured. more

7 Comments on State Individual Income Tax Rates and Brackets for 2023

  1. Maine is 3rd highest taxed when you include the over 7% income tax, 5.5% sales tax and all the other taxes while enjoying the 48th lowest income average.
    Democrats love to de-incentivize achievement.
    One of our largest industries is now welfare.
    The African illegals are getting about $65,000 per yr in housing, food, etc.
    More money than they’ve ever seen in their lives.

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  2. Man, California & Hawaii FUCK their taxpayers HARD!

    The low earners get fucked bad too.
    Look at CA, earning 24K you are taxed 4%, earn 52K you pay 8%.
    So you go from paying about $1000 to over $4000.
    Your income did not quadruple but your taxes did!

    Add in how much the feds tax-fuck you and send it overseas or spend it on illegals, I think it’s past time for a revolution.

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  3. Canada says “hold my beer.” All Canadian provinces and territories have income taxes. The top marginal rates range from 11.5% in Nunavut to 25.75% in Quebec. The top marginal rate federally is 33%.

    But…the healthcare is free dontcha know!

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  4. @ beachmom at 2:22 pm,
    Didn’t Maine impose some (really meager) requirements on SNAP a few years back and had a huge reduction in creeples eating for free?
    FJB

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  5. Cracker, Paul LePage put time limits on welfare.
    Janet Mills removed them as soon as she got into office.

    The Dems won’t allow restrictions on what can be bought with ebt cards. People use them in casinos, vacations, anything.

    She has also decriminalized prostitutes, pot is legal, she signed a bill allowing abortion up to the moment before birth.
    She has overtaxed us, especially low income earners.
    Now she’s trying to have the electric company taken over by state govt.

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