State Tax Rates

The perennial topic of taxes is one woven into the fabric of American life. While federal income tax consistently garners the lion's share of attention, understanding state income tax rates is equally crucial. These rates, which vary widely across the nation, have substantial implications for the hard-earned cash in taxpayers' pockets, directly impacting both personal finance and cost of living. State taxes help fund crucial public expenditures, such as infrastructure, education, healthcare, and social services, patching up any gaps left by federal funding. 

Key findings from the data include:

• The highest income tax rate bracket is seen in California, with the highest earners taxed at a rate of 13.3%. The Golden State is closely followed by New York with a top rate of 10.9% and Oregon at 9.9%.
• Seven states levy no state income tax at all, namely: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Tennessee also does not tax regular wage income, though it does tax interest and dividend income.
• Minnesota deserves mention for its comprehensive tax rate range, spanning from a lower limit of 5.4% to an upper limit of 9.9%.
• Despite having a flat rate of 7%, Washington has one of the higher income tax rates in the country, showcasing how even states with a flat tax rate system can end up having a high tax rate.
• On the other end of the spectrum, Oklahoma boasts the lowest income tax rate in the country at 0.3%.