Highest Taxed States 2020

Only two things in life are certain: death and taxes, the old adage goes. For many people in the United States, April 15 – or tax day – is one of the most dreaded says of the year. In addition to paying federal taxes, many people around the nation also have to pay state income taxes.

While some states including Florida and New Hampshire are fortunate enough to not have state income taxes, there are other states that have a high state income tax rate. However, don’t think that the states without income taxes get off that easy – revenue is raised for the state through other forms of taxation, including property taxes and sales taxes.

Of the 50 U.S. states, a total of 43 have individual income taxes. Income from wages and salaries are taxes in 41 of the states, while just two tax income from interest and tax dividends. Seven states do not have an income tax.

Just nine of the states in the U.S. use a single-rate tax structure. This means that everyone pays one rate, regardless of the amount of taxable income. Thirty-two states use graduated-rate income brackets, wherein rates are set based on the amount of taxable income and other factors including marital status at the time of filing.

Of all the states, California has the highest individual income tax rates. Rates range from 1% to 13.30% based on income. Hawaii also has a high individual income tax rate, ranging from 1.4% to 11% and spread across 12 different income brackets

New Jersey doesn’t fall far behind Hawaii with rates starting at 5.35% and ranging to 9.85%. Iowa’s tax rate for anyone making at least $73,710 is fairly high at 8.53%. The minimum tax rate in this state is just 0.33%.

In the states that do not use income brackets, North Carolina has the highest tax rate. This state has a single-rate tax structure of 5.25%, surpassing other states including New Hampshire (5%), Massachusetts (5.05%), and Kentucky (5%).

*Tax Rate (%)
* Rank based on normalized and combined rates for single filers with no dependents or deductions. Income tax is weighted 70%; sales tax at 30%.
State Tax Rank Income Tax Sales Tax Property Tax (per $100K)
California5113.30%7.50%$841
Minnesota509.85%6.88%$1,224
Hawaii4911.00%4.00%$304
New Jersey488.97%7.00%$2,530
Iowa478.98%6.00%$1,678
Vermont468.95%6.00%$1,908
Washington DC458.95%5.75%$603
New York448.82%4.00%$1,812
Maine437.95%5.50%$1,424
Idaho427.40%6.00%$796
Oregon419.90%0.00%$1,121
Wisconsin407.65%5.00%$615
Arkansas397.00%6.50%$658
South Carolina387.00%6.00%$601
Connecticut376.70%6.35%$2,114
Nebraska366.84%5.50%$1,855
West Virginia356.50%6.00%$615
Rhode Island345.99%7.00%$1,723
Kentucky336.00%6.00%$925
Maryland325.75%6.00%$1,125
Mississippi315.00%7.00%$862
Massachusetts305.20%6.25%$1,294
Ohio295.39%5.75%$1,641
North Carolina285.80%4.75%$894
Missouri276.00%4.23%$1,026
Georgia266.00%4.00%$1,000
Louisiana256.00%4.00%$555
Illinois245.00%6.25%$2,408
Virginia235.75%4.30%$858
Kansas224.80%6.50%$1,491
Oklahoma215.25%4.50%$974
New Mexico204.90%5.13%$830
Utah195.00%4.70%$713
Arizona184.54%5.60%$754
Montana176.90%0.00%$892
Michigan164.25%6.00%$1,729
Alabama155.00%4.00%$432
Delaware146.60%0.00%$604
Indiana133.40%7.00%$907
Colorado124.63%2.90%$607
Pennsylvania113.07%6.00%$1,674
North Dakota103.22%5.00%$894
Tennessee90.00%7.00%$768
Nevada80.00%6.85%$693
Washington70.00%6.50%$1,125
Texas60.00%6.25%$1,993
Florida50.00%6.00%$1,041
South Dakota40.00%4.00%$1,388
Wyoming30.00%4.00%$635
Alaska20.00%0.00%$1,432
New Hampshire10.00%0.00%$2,296