The Homa Files

I’m hearing increasing chatter about relocations to low tax tax states to offset the burst of Fed tax increases.

So, I checked out current state income tax rates.

Best data source I  found for state-by-state tax rates – income, sales, property, estate – is at BankRate.com

Full list of state income tax rates is below …

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Zero income tax in 6 states

• Alaska
• Florida
• Nevada
• South Dakota
• Texas
• Washington

Alaska benefits from their oil industry;  Florida & Nevada rake in sales taxes from tourists.

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2 states tax interest & dividends, but not wages

• New Hampshire: 5% on interest and dividend income. Wages are not taxed.
• Tennessee: 6% on interest and dividend income. Wages are not taxed.

Say, what ?

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10 highest state tax rates

• Hawaii: 11% on income over $200,000
• Oregon: 11% on income over $250,000
• California:10.55% on income over $1 million
• Rhode Island: 9.9% on income over $373,650
• District of Columbia: 8.5% on income over $40,000
• Iowa: 8.98% on income over $63,315
• New Jersey: 8.97% on income over $500,000
• New York: 8.97% on income over $500,000
• Vermont: 8.95% on income over $373,650
• Maine: 8.5% on income over $20,150

All are blue states.  Coincidence?

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Here’s the full list, showing the highest income tax rate in each state
… and the income level that puts a taxpayer in the top bracket.

•Alabama: 5% on income over  $3,000
•Alaska: No income tax
•Arizona: 4.54% on income over $150,000
•Arkansas: 7% on income over  $32,600
•California:10.55% on income over $1 million
•Colorado: flat 4.63% of federal taxable income
•Connecticut: 6.5% on income over $500,000
•District of Columbia: 8.5% on income over $40,000 
•Delaware: 6.95% on income over $60,000
•Florida: No income tax
•Georgia: 6% on income over $7,000
•Hawaii: 11% on income over $200,000
•Idaho: 7.8% on income over $26,418
•Illinois: flat 3% of federal AGI with modifications
•Indiana: flat 3.4% of federal AGI with modifications
•Iowa: 8.98% on income over $63,315
•Kansas: 6.45% on income over $30,000
•Kentucky: 6% on income over $75,000
•Louisiana: 6% on income over $50,000
•Maine: 8.5% on income over $20,150
•Maryland: 6.25% on income over $1 millio
•Massachusetts: flat 5.3% on all income
•Michigan: flat 4.35% of federal AGI with modifications
•Minnesota: 7.85% on income over $74,780
•Mississippi: 5% on income over $10,000
•Missouri: 6% on income over $9,000
•Montana: 6.9% on income over $15,400
•Nebraska: 6.84% on income over $27,000
•Nevada: no income tax
•New Hampshire: 5% on interest and dividend income.  Wages are not taxed.
•New Jersey: 8.97% on income over $500,000
•New Mexico: 4.9% on income over $16,000
•New York: 8.97% on income over $500,000
•North Carolina: 7.75% on income over $60,000
•North Dakota: 4.86% on income over $373,650
•Ohio: 5.925% on income over $200,000
•Oklahoma: 5.5% on income over $8,700
•Oregon: 11% on income over $250,000
•Pennsylvania: flat 3.07% on all income
•Rhode Island: 9.9% on income over $373,650
•South Carolina: 7% on income over $13,700
•South Dakota: no income tax
•Tennessee: 6% on interest and dividend income.  Wages are not taxed.
•Texas: no income tax 
•Utah: flat 5% on all income
•Vermont: 8.95% on income over $373,650
•Virginia: 5.75% on income over $17,000
•Washington: no income tax
•West Virginia: 6.5% on income over $60,000
•Wisconsin: 7.75% on income over $225,000

Source

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Tags: state tax rates

This entry was posted on November 21, 2012 at 6:54 am and is filed under Retirement - Social Security, Taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.