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2024 State Income Tax Rates: All You Need to Know

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    State income taxes are a tax enforced by a state’s government that apply to any money earned in — and sometimes outside — a certain state. These taxes affect most individuals and organizations, and failing to file accurately and on time can spur consequences like fines, audits and other costly penalties. Read how state income taxes work, how they’re calculated and the individual rates for 2024 in each state that maintains them.

    The federal government isn’t the only authority that requires payroll taxes.

    In fact, a company must adhere to an income tax law — or several — for every state where it operates. While many may rely on a precedent set by federal regulations, some rely on their own unique tax structures. While potentially difficult to manage, state income taxes are vital to fund:

    • health care programs
    • public and higher education
    • maintenance of roads, highways and other forms of transportation
    • and other vital services and initiatives

    But with so many potential taxes, it can be hard to identify and verify the laws that affect your organization. Luckily, we’ll help you understand what state income tax is, how to calculate it and the specific income tax rates for each state.

    What is state income tax?

    A state income tax is a tax enforced by a state’s government on income earned in (and sometimes from) the state. Certain laws may be specific to money earned specifically in that state, while others may place a tax on income generated from anywhere.

    Additionally, individuals and organizations have to report this on taxes. Like with federal taxes, this means companies and taxpayers must file tax returns every year. Failing to pay or report state income taxes timely and accurately can result in:

    • fines
    • audits
    • interest
    • and other penalties

    Factors affecting state income tax

    State income tax doesn’t always depend on flat, static rate. From the different filing statuses to income brackets and more, the total state taxes owed can vary between taxpayers. With this in mind, let’s explore the variables that impact state income taxes.

    Annual income

    An employee could pay higher (or less) state taxes depending on what they earn each year. For example, certain states may apply more taxes to those with a higher annual income. Some employees may even be exempt from a state tax outright if their income falls below a certain threshold.

    Filing statuses

    The four primary filing statuses can have a significant impact on an employee’s overall tax burden. Keep the following in mind.

    Single filing

    According to the IRS, the single filing status is typically used for taxpayers who are unmarried, divorced or legally separated. In most cases, an individual who identifies as single must file a tax return.

    Married filing separately

    Married taxpayers have the option to file their tax returns independently. Potentially, this could reduce the total tax burden two people would have if they filed jointly. For example, one spouse may be a small business owner who would benefit from a separate filing due to a potential tax credit or other incentive.

    Married filing jointly

    Alternatively, married taxpayers may file their returns together. If the couple files together, both must ensure their returns include their combined:

    • income
    • deductions
    • credits

    A spouse may also file jointly even if they had no income the previous year. Generally, the IRS recommends married taxpayers complete joint and separate returns to determine which route yields the lower combined tax.

    Head of household

    To qualify as a head of household, an individual must pay over one-half of the cost of maintaining a home for themselves and a dependent. With married taxpayers, this means only one can claim this status. In most cases, those filing as head of household can claim a larger deduction than the single status.


    Taxpayers with an exemption may omit all or certain income from their filing. Both organizations — like some charities or nonprofits — and individuals may qualify for a tax exemption.

    Keep in mind an exemption isn’t a deduction. Rather, it completely lowers the amount that can be taxed, meaning a percentage-based tax will be derived from the post-exemption amount.

    Tax deductions

    Deductions reduce a taxpayer’s taxable income based on status, hardship, inflation and more. Deductions tend to take one of two forms:

    • Standard deduction or a categorical deduction that combines the basic deduction with any additional deductions for age or disability.
    • Itemized deductions or a list of deductions that a taxpayer may be required to provide through a Schedule A (Form 1040).

    In most cases, a standard deduction offers a simpler route. However, some taxpayers may be required to provide an itemized deduction, such as if someone is filing on behalf of an estate or trust.

    Tax credits

    A tax credit reduces the income tax an individual or organization owes. Refundable tax credits can increase a tax return, whereas nonrefundable tax credits don’t convert to a return after they help completely reduce any owed taxes.

    Which states have income tax?

    Nearly every state maintains an income tax — save eight. They are:

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

    Similarly, New Hampshire doesn’t apply a tax to any earned wages. In these cases, states may generate revenue through other taxes, such as for sales or property.

    How to calculate state income tax in 2024

    In most cases, taxpayers should consult a licensed tax professional and use their state’s income tax calculator to help confirm their eligibility. Even so, income tax is influenced by three primary factors:

    • taxable income
    • a state’s effective tax rate
    • a state’s marginal tax rate

    A marginal tax rate aligns with the highest income bracket a taxpayer reaches. An effective tax rate, on the other hand, is the actual percentage an employee pays on their entire taxable income. (Remember, one’s income may fall into more than one bracket, so the marginal tax rate can’t always be used to accurately calculate tax liability.)

    For most Americans, advisors recommend taxpayers rely on their state’s effective tax rate to prepare for filing. But those in a higher income bracket should generally rely on the marginal tax rate for planning.

    Regardless, taxpayers should consult their local government’s site to verify the income taxes that apply to their unique situation.

    When to file state income taxes in 2024

    When income taxes are due varies among the states that collect them. For most, taxpayers must file their state tax returns for 2023 by April 18. (The federal tax deadline, on the other hand, is April 15.) Keep the following information in mind for states with less common due dates:

    State Due date for 2023 taxes
    Colorado April 15
    Delaware May 2
    Hawaii April 20
    Iowa May 2
    Louisiana May 15
    Maine April 19
    Maryland April 15
    Massachusetts April 19
    Minnesota April 15
    Mississippi April 15
    Nebraska April 15
    New Hampshire April 15
    New Mexico May 2
    North Carolina April 15
    North Dakota April 15
    Oklahoma April 20
    South Carolina May 2
    South Dakota April 15
    Utah April 20
    Virginia May 1

    While many of these dates remain consistent, it’s important for taxpayers to regularly verify this date each year to avoid a late or missed filing.

    2024 individual income tax rate by state

    Excluding those without income tax, no two states share identical rates and brackets. For example, Delaware’s highest taxable income bracket caps off at $60,001, whereas New York considers income up to $25 million annually.

    Keep the following rates and brackets in mind for individual taxpayers:

    State Individual tax rates Individual minimum and maximum income brackets
    Alabama 2%-5% $0-$3,000
    Arizona 2.5% Flat rate
    Arkansas 4%-4.4% $0-$8,000
    California 1%-13.30% $0-$1,000,000
    Colorado 4.4% Flat rate
    Connecticut 2%-6.99% $0-$500,000
    Delaware 2.2%-6.6% $2,000-$60,000
    Georgia 5.49% Flat rate
    Hawaii 1.4%-11% $0-$200,000
    Idaho 5.8% Flat rate
    Illinois 4.95% Flat rate
    Indiana 3.05% Flat rate
    Iowa 4.4%-5.7% $0-$62,100
    Kansas 3.1%-5.7% $0-$30,000
    Kentucky 4% Flat rate
    Louisiana 1.85%-4.25% $0-$50,000
    Maine 5.8%-7.15% $0-$61,600
    Maryland 2%-5.75% $0-$250,000
    Massachusetts 5%-9% $0-$1,000,000
    Michigan 4.25% Flat rate
    Minnesota 5.35%-9.85% $0-$193,240
    Mississippi 4.7% Flat rate
    Missouri 2%-4.8% $1,273-$8,911
    Montana 4.7%-5.9% $0-$20,500
    Nebraska 2.46%-5.84% $0-$35,730
    New Jersey 1.4%-10.75% $0-$1,000,000
    New Mexico 1.7%-5.9% $0-$210,000
    New York 4%-10.9% $0-$25,000,000
    North Carolina 4.5% Flat rate
    North Dakota 1.95%-2.5% $44,725-$225,975
    Ohio 2.75%-3.5% $26,050-$92,150
    Oklahoma 0.25%-4.75% $0-$7,200
    Oregon 4.75%-9.9% $0-$7,200
    Pennsylvania 3.07% Flat rate
    Rhode Island 3.75%-5.99% $0-$176,050
    South Carolina 0.0%-6.4% $0-$17,330
    Utah 4.65% Flat rate
    Vermont 3.35%-8.75% $0-$229,550
    Virginia 2%-5.75% $0-$17,000
    Washington, D.C. 4%-10.75% $0-$1,000,000
    West Virginia 2.36%-5.12% $0-$60,000
    Wisconsin 3.5%-7.65% $0-$315,310

    Remember, it’s best practice to consult a licensed tax professional about any potential credits or deductions or simply to verify a state’s specific tax rate.

    Explore Paycom’s resources to learn more about payroll taxes, compliance and more.

    DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.