Which states have no income tax?

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire (dividends/interest only), South Dakota, Tennessee (dividends/interest only), Texas, Washington, and Wyoming.

What is California's top income tax rate?

California's top marginal tax rate is 13.3% on income over $1 million, plus an additional 1% mental health services tax on income over $1 million, making the effective top rate 14.4%.

What state has the highest income tax?

California has the highest top marginal rate at 13.3%-14.4%. New Jersey's top rate is 10.75%, and New York's is 10.9% (plus NYC taxes for city residents).

Do I pay state taxes where I live or work?

You typically owe taxes in your state of residence. If you work in a different state, you may owe taxes there too, but most states offer credits to avoid double taxation.

State Income Tax Brackets 2025: CA, NY, NJ, TX & More

States With No Income Tax

Nine states don’t tax wages and salaries:

State	Notes
Alaska	No income tax
Florida	No income tax
Nevada	No income tax
New Hampshire	No tax on wages (only dividends/interest)
South Dakota	No income tax
Tennessee	No tax on wages (only dividends/interest)
Texas	No income tax
Washington	No income tax
Wyoming	No income tax

States With Flat Tax Rates

State	Flat Rate	Minimum Income
Arizona	2.50%	All income
Colorado	4.40%	All income
Georgia	5.49%	All income
Idaho	5.80%	All income
Illinois	4.95%	All income
Indiana	3.05%	All income
Iowa	3.80%	All income
Kentucky	4.00%	All income
Michigan	4.25%	All income
Mississippi	4.70%	Above $10,000
New Hampshire	3.00%	Dividends/interest only
North Carolina	4.75%	All income
Pennsylvania	3.07%	All income
Utah	4.65%	All income

California Tax Brackets (2025)

Single Filers

Taxable Income	Tax Rate
$0 - $10,756	1.00%
$10,757 - $25,499	2.00%
$25,500 - $40,245	4.00%
$40,246 - $55,866	6.00%
$55,867 - $70,606	8.00%
$70,607 - $360,659	9.30%
$360,660 - $432,787	10.30%
$432,788 - $721,314	11.30%
$721,315 - $1,000,000	12.30%
$1,000,001+	13.30%

Additional: 1% Mental Health Services Tax on income over $1 million

Married Filing Jointly

Taxable Income	Tax Rate
$0 - $21,512	1.00%
$21,513 - $50,998	2.00%
$50,999 - $80,490	4.00%
$80,491 - $111,732	6.00%
$111,733 - $141,212	8.00%
$141,213 - $721,318	9.30%
$721,319 - $865,574	10.30%
$865,575 - $1,442,628	11.30%
$1,442,629 - $2,000,000	12.30%
$2,000,001+	13.30%

New York Tax Brackets (2025)

Single Filers

Taxable Income	Tax Rate
$0 - $8,500	4.00%
$8,501 - $11,700	4.50%
$11,701 - $13,900	5.25%
$13,901 - $80,650	5.50%
$80,651 - $215,400	6.00%
$215,401 - $1,077,550	6.85%
$1,077,551 - $5,000,000	9.65%
$5,000,001 - $25,000,000	10.30%
$25,000,001+	10.90%

Married Filing Jointly

Taxable Income	Tax Rate
$0 - $17,150	4.00%
$17,151 - $23,600	4.50%
$23,601 - $27,900	5.25%
$27,901 - $161,550	5.50%
$161,551 - $323,200	6.00%
$323,201 - $2,155,350	6.85%
$2,155,351 - $5,000,000	9.65%
$5,000,001 - $25,000,000	10.30%
$25,000,001+	10.90%

New York City Additional Tax

NYC residents pay additional city income tax:

Taxable Income	NYC Rate
$0 - $12,000	3.078%
$12,001 - $25,000	3.762%
$25,001 - $50,000	3.819%
$50,001+	3.876%

Combined top rate (NY + NYC): 14.776%

New Jersey Tax Brackets (2025)

Single & Married Filing Jointly

Taxable Income	Tax Rate
$0 - $20,000	1.40%
$20,001 - $35,000	1.75%
$35,001 - $40,000	3.50%
$40,001 - $75,000	5.525%
$75,001 - $500,000	6.37%
$500,001 - $1,000,000	8.97%
$1,000,001+	10.75%

Texas (No State Income Tax)

Tax Type	Rate
State Income Tax	0%
Local Income Tax	None
Property Tax (avg)	~1.60% of home value
Sales Tax	6.25% state + up to 2% local

Florida (No State Income Tax)

Tax Type	Rate
State Income Tax	0%
Local Income Tax	None
Property Tax (avg)	~0.80% of home value
Sales Tax	6% state + up to 2.5% local

State-by-State Top Marginal Rates

Highest Tax States

Rank	State	Top Rate	Kicks In At
1	California	13.30%	$1,000,000+
2	New York	10.90%	$25,000,000+
3	New Jersey	10.75%	$1,000,000+
4	Hawaii	11.00%	$200,000+
5	Minnesota	9.85%	$193,240+
6	Oregon	9.90%	$125,000+
7	Vermont	8.75%	$229,500+
8	Iowa	8.53%	$82,080+
9	Wisconsin	7.65%	$315,310+
10	Maine	7.15%	$61,600+

Lowest Tax States (With Income Tax)

Rank	State	Top Rate
1	Arizona	2.50% (flat)
2	North Dakota	2.50%
3	Pennsylvania	3.07% (flat)
4	Indiana	3.05% (flat)
5	Michigan	4.25% (flat)
6	Colorado	4.40% (flat)
7	Utah	4.65% (flat)
8	North Carolina	4.75% (flat)
9	Illinois	4.95% (flat)
10	Oklahoma	4.75%

Tax Comparison: $100,000 Income

Single filer, standard deductions:

State	Approx. Tax	Effective Rate
California	$5,200	5.2%
New York	$4,800	4.8%
New Jersey	$4,300	4.3%
Illinois	$4,950	4.95%
Pennsylvania	$3,070	3.07%
North Carolina	$4,750	4.75%
Colorado	$4,400	4.40%
Texas	$0	0%
Florida	$0	0%

Tax Comparison: $250,000 Income

Single filer, standard deductions:

State	Approx. Tax	Effective Rate
California	$19,500	7.8%
New York	$14,200	5.7%
New York City	$21,900	8.8%
New Jersey	$14,700	5.9%
Illinois	$12,375	4.95%
Pennsylvania	$7,675	3.07%
Texas	$0	0%
Florida	$0	0%

Other Major States

Massachusetts (Flat Tax)

Tax Type	Rate
Standard Income Tax	5.00%
Surtax on income > $1M	4.00% additional
Effective top rate	9.00%

Ohio (Graduated Tax)

Taxable Income	Tax Rate
$0 - $26,050	0%
$26,051 - $100,000	2.75%
$100,001+	3.50%

Virginia (Graduated Tax)

Taxable Income	Tax Rate
$0 - $3,000	2.00%
$3,001 - $5,000	3.00%
$5,001 - $17,000	5.00%
$17,001+	5.75%

Georgia (Flat Tax)

Tax	Rate
State Income Tax	5.49% (flat)

Remote Work Considerations

State Tax Implications

Scenario	Tax Situation
Live & work same state	One state return
Live in one, work in another	May owe both (credit usually available)
Remote work, employer elsewhere	Typically taxed by residence state
Traveling worker	Complex; consult professional

States With Reciprocal Agreements

These state pairs have agreements to avoid double taxation for commuters:

State	Has Agreements With
New Jersey	Pennsylvania
Pennsylvania	NJ, OH, IN, MD, VA, WV
Virginia	DC, KY, MD, PA, WV
DC	All states (no DC tax on non-residents)
Maryland	DC, PA, VA, WV

Key Takeaways

9 states have no income tax — TX, FL, WA, NV, WY, SD, AK, NH, TN
California has highest rate — 13.3% + 1% mental health surtax
NYC has additional tax — Combined 14.8% for high earners
Flat tax states growing — Many states moving to flat rate systems
$100K income: ~0-5% state tax — Wide range depending on state
Remote work complicates taxes — Know your obligations in both states

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy