A new report from the Tax Foundation breaks down income taxes by state in great detail.
Some key points from the report include:
- 43 states levy an income tax
- 41 states tax salary income and two tax dividends and interest only
- Tax rates range from as little as 0.36% all the way up to 13.3%
The number of tax rates and brackets vary from state to state. Some states have a large number of tax brackets that apply an increasing tax rate as an individual’s income increases. California, for instance, has 10 different tax brackets ranging from 1% to 13.3%. But then some other states have as little as one tax bracket; Massachusetts has a single tax bracket of 5.1%.
The Tax Foundation has compiled a list of all states and their income tax brackets along with standard deductions and personal exemptions.
Tax Freedom Day varies by state also. Tax Freedom Day is the date representing the length of time into the year Americans have to work to before they have earned enough money to pay their combined federal, state, and local taxes for the year.
The Tax Foundation has put together a list of the Tax Freedom dates by state. Dates range from April 5 (Mississippi) to May 21 (Connecticut). See the full list along with other tax related facts and figures that coincide with the report on income taxes.
