State Earnings Tax Charges and Brackets, 2022


Key Findings

  • Particular person revenue taxes are a serious supply of state authorities income, accounting for 36 p.c of state tax collections in fiscal yr 2020, the most recent yr for which information can be found.
  • Forty-three states levy particular person revenue taxes. Forty-one tax wage and wage revenue, whereas New Hampshire completely taxes dividend and curiosity revenue and Washington taxes the capitals positive factors revenue of excessive earners. Seven states levy no particular person revenue tax in any respect.
  • Of these states taxing wages, 9 have single-rate tax constructions, with one price making use of to all taxable revenue. Conversely, 32 states and the District of Columbia levy graduated-rate revenue taxes, with the variety of brackets various extensively by state. Hawaii has 12 brackets, essentially the most within the nation.
  • States’ approaches to revenue taxes fluctuate in different particulars as properly. Some states double their single-bracket widths for married filers to keep away from a “marriage penalty.” Some states index tax brackets, exemptions, and deductions for inflation; many others don’t. Some states tie their normal deductions and private exemptions to the federal tax code, whereas others set their very own or provide none in any respect.

Particular person revenue taxes are a serious supply of state authorities income, accounting for 36 p.c of state tax collections. Their prominence in public coverage issues is additional enhanced in that people are actively accountable for submitting their revenue taxes, in distinction to the oblique cost of gross sales and excise taxes.

Forty-three states levy particular person revenue taxes. Forty-one tax wage and wage revenue, whereas New Hampshire completely taxes dividend and curiosity revenue and Washington taxes the capital positive factors revenue of excessive earners. Seven states levy no particular person revenue tax in any respect.

Of these states taxing wages, 9 have single-rate tax constructions, with one price making use of to all taxable revenue. Conversely, 32 states and the District of Columbia levy graduated-rate revenue taxes, with the variety of brackets various extensively by state. Kansas, for instance, is certainly one of a number of states imposing a three-bracket revenue tax system. On the different finish of the spectrum, Hawaii has 12 brackets. High marginal charges vary from North Dakota’s 2.9 p.c to California’s 13.3 p.c.

In some states, a lot of brackets are clustered inside a slender revenue band. For instance, Georgia’s taxpayers attain the state’s sixth and highest bracket at $7,000 in taxable revenue. In different states, the highest price kicks in at a a lot increased stage of marginal revenue. For instance, the highest price kicks in at $1 million or extra in California (when the “millionaire’s tax” surcharge is included), in addition to in New Jersey, New York, and the District of Columbia. In New York, an extra prime price for revenue exceeding $25 million was enacted through the 2021 legislative session.

Desk 1 exhibits how every state’s particular person revenue tax is structured.

2022 State Particular person Earnings Tax Constructions
States with No Earnings Tax States with a Flat Earnings Tax States with a Graduated-rate Earnings Tax
Alaska Colorado Alabama
Florida Illinois Arizona
Nevada Indiana Arkansas
South Dakota Kentucky California
Tennessee Massachusetts Connecticut
Texas Michigan Delaware
Wyoming New Hampshire* Georgia
  North Carolina Hawaii
Pennsylvania Idaho
Utah Iowa
Washington** Kansas
  Louisiana
Maine
Maryland
Minnesota
Mississippi
Missouri
Montana
Nebraska
New Jersey
New Mexico
New York
North Dakota
Ohio
Oklahoma
Oregon
Rhode Island
South Carolina
Vermont
Virginia
West Virginia 
Wisconsin 
District of Columbia

Notice: *Applies to curiosity and dividends revenue solely. **Applies to capital positive factors revenue of high-earners.

Sources: Tax Basis; state tax statutes, types, and directions; Bloomberg BNA.

States’ approaches to revenue taxes fluctuate in different particulars as properly. Some states double their single filer bracket widths for married filers to keep away from imposing a “marriage penalty.” Some states index tax brackets, exemptions, and deductions for inflation, whereas many others don’t.[2] Some states tie their normal deductions and private exemptions to the federal tax code, whereas others set their very own or provide none in any respect.

The federal Tax Cuts and Jobs Act of 2017 (TCJA) elevated the usual deduction (set at $12,950 for single filers and $25,900 for joint filers in 2022) whereas suspending the non-public exemption by lowering it to $0 by means of 2025. As a result of many states use the federal tax code as the place to begin for their very own normal deduction and private exemption calculations, some states that beforehand coupled to those provisions within the federal tax code have up to date their conformity statutes in recent times to both undertake federal adjustments, retain their earlier deduction and exemption quantities, or retain their very own separate system however enhance the state-provided deduction or exemption quantities.

Within the following tables we’ve got compiled essentially the most up-to-date information out there on state particular person revenue tax charges, brackets, normal deductions, and private exemptions for each single and joint filers. After the tables, we doc notable particular person revenue tax adjustments carried out in 2022.

2022 State Earnings Tax Charges and Brackets
State Particular person Earnings Tax Charges and Brackets, as of January 1, 2022
  Single Filer Married Submitting Collectively Normal Deduction Private Exemption
State Charges   Brackets Charges   Brackets Single Couple Single Couple Dependent
Alabama 2.00% > $0 2.00% > $0 $2,500 $7,500 $1,500 $3,000 $1,000
(a, b, c) 4.00% > $500 4.00% > $1,000          
  5.00% > $3,000 5.00% > $6,000          
Alaska none none n.a. n.a. n.a. n.a. n.a.
Arizona 2.59% > $0 2.59% > $0 $12,950 $25,900 n.a. n.a. $100 credit score
(d, f, g, w, pp) 3.34% > $27,808 3.34% > $55,615          
  4.17% > $55,615 4.17% > $111,229          
  4.50% > $166,843 4.50% > $333,684          
Arkansas 2.00% > $0 2.00% > $0 $2,200 $4,400 $29 credit score $58 credit score $29 credit score
(d, h, i, o, oo) 4.00% > $4,300 4.00% > $4,300          
  5.50% > $8,500 5.50% > $8,500          
California 1.00% > $0 1.00% > $0 $4,803 $9,606 $129 credit score $258 credit score $400 credit score
(a, i, ok, l, m, n, o, rr) 2.00% > $9,325 2.00% > $18,650          
  4.00% > $22,107 4.00% > $44,214          
  6.00% > $34,892 6.00% > $69,784          
  8.00% > $48,435 8.00% > $96,870          
  9.30% > $61,214 9.30% > $122,428          
  10.30% > $312,686 10.30% > $625,372          
  11.30% > $375,221 11.30% > $750,442          
  12.30% > $625,369 12.30% > $1,000,000          
  13.30% > $1,000,000 13.30% > $1,250,738          
Colorado (a, p) 4.55% > $0 4.55% > $0 $12,950 $25,900 n.a. n.a. n.a.
Connecticut 3.00% > $0 3.00% > $0 n.a. n.a. $15,000 $24,000 $0
(j, q, r, s) 5.00% > $10,000 5.00% > $20,000          
  5.50% > $50,000 5.50% > $100,000          
  6.00% > $100,000 6.00% > $200,000          
  6.50% > $200,000 6.50% > $400,000          
  6.90% > $250,000 6.90% > $500,000          
  6.99% > $500,000 6.99% > $1,000,000          
Delaware 2.20% > $2,000 2.20% > $2,000 $3,250 $6,500 $110 credit score $220 credit score $110 credit score
(a, i, n, t) 3.90% > $5,000 3.90% > $5,000          
  4.80% > $10,000 4.80% > $10,000          
  5.20% > $20,000 5.20% > $20,000          
  5.55% > $25,000 5.55% > $25,000          
  6.60% > $60,000 6.60% > $60,000          
Florida none none n.a. n.a. n.a. n.a. n.a.
Georgia 1.00% > $0 1.00% > $0 $4,600 $6,000 $2,700 $7,400 $3,000
 (u) 2.00% > $750 2.00% > $1,000 $5,400 $7,100      
  3.00% > $2,250 3.00% > $3,000          
  4.00% > $3,750 4.00% > $5,000          
  5.00% > $5,250 5.00% > $7,000          
  5.75% > $7,000 5.75% > $10,000          
Hawaii 1.40% > $0 1.40% > $0 $2,200 $4,400 $1,144 $2,288 $1,144
(n, v) 3.20% > $2,400 3.20% > $4,800          
  5.50% > $4,800 5.50% > $9,600          
  6.40% > $9,600 6.40% > $19,200          
  6.80% > $14,400 6.80% > $28,800          
  7.20% > $19,200 7.20% > $38,400          
  7.60% > $24,000 7.60% > $48,000          
  7.90% > $36,000 7.90% > $72,000          
  8.25% > $48,000 8.25% > $96,000          
  9.00% > $150,000 9.00% > $300,000          
  10.00% > $175,000 10.00% > $350,000          
  11.00% > $200,000 11.00% > $400,000          
Idaho 1.000% > $0 1.000% > $0 $12,950 $25,900 n.a. n.a. n.a.
(d, n, w) 3.000% > $1,588 3.000% > $3,176          
  4.500% > $4,763 4.500% > $9,526          
  6.000% > $7,939 6.000% > $15,878          
Illinois (n, o, x) 4.95% > $0 4.95% > $0 n.a. n.a. $2,375 $4,750 $2,375
Indiana (a, n, y) 3.23% > $0 3.23% > $0 n.a. n.a. $1,000 $2,000 $1,000
Iowa 0.33% > $0 0.33% > $0 $2,210 $5,450 $40 credit score $80 credit score $40 credit score
(a, b, e, i, dd) 0.67% > $1,743 0.67% > $1,743          
  2.25% > $3,486 2.25% > $3,486          
  4.14% > $6,972 4.14% > $6,972          
  5.63% > $15,687 5.63% > $15,687          
  5.96% > $26,145 5.96% > $26,145          
  6.25% > $34,860 6.25% > $34,860          
  7.44% > $52,290 7.44% > $52,290          
  8.53% > $78,435 8.53% > $78,435          
Kansas 3.10% > $0 3.10% > $0 $3,500 $8,000 $2,250 $4,500 $2,250
(a, n) 5.25% > $15,000 5.25% > $30,000          
  5.70% > $30,000 5.70% > $60,000          
Kentucky 5.00% > $0 5.00% > $0 $2,770 $5,540 n.a. n.a. n.a.
(a, e)                      
Louisiana 1.85% > $0 1.85% > $0 n.a. n.a. $4,500 $9,000 $1,000
(z) 3.50% > $12,500 3.50% > $25,000          
  4.25% > $50,000 4.25% > $100,000          
Maine 5.80% > $0 5.80% > $0 $12,950 $25,900 $4,450 $8,900 $300 credit score
(w, aa, dd) 6.75% > $23,000 6.75% > $46,000          
  7.15% > $54,450 7.15% > $108,900          
Maryland 2.00% > $0 2.00% > $0 $2,350 $4,700 $3,200 $6,400 $3,200
(a, n, o, bb, cc) 3.00% > $1,000 3.00% > $1,000          
  4.00% > $2,000 4.00% > $2,000          
  4.75% > $3,000 4.75% > $3,000          
  5.00% > $100,000 5.00% > $150,000          
  5.25% > $125,000 5.25% > $175,000          
  5.50% > $150,000 5.50% > $225,000          
  5.75% > $250,000 5.75% > $300,000          
Massachusetts 5.00% > $0 5.00% > $0 n.a. n.a. $4,400 $8,800 $1,000
Michigan (a, n) 4.25% > $0 4.25% > $0 n.a. n.a. $5,000 $10,000 $5,000
Minnesota 5.35% > $0 5.35% > $0 $12,900 $25,800 n.a. n.a. $4,450
(e, dd, ee) 6.80% > $28,080 6.80% > $41,050          
  7.85% > $92,230 7.85% > $163,060          
  9.85% > $171,220 9.85% > $284,810          
Mississippi 4.00% > $5,000 4.00% > $5,000 $2,300 $4,600 $6,000 $12,000 $1,500
  5.00% > $10,000 5.00% > $10,000          
Missouri 1.50% > $108 1.50% > $108 $12,950 $25,900 n.a n.a n.a
(a, b, ok, n, w) 2.00% > $1,088 2.00% > $1,088          
  2.50% > $2,176 2.50% > $2,176          
  3.00% > $3,264 3.00% > $3,264          
  3.50% > $4,352 3.50% > $4,352          
  4.00% > $5,440 4.00% > $5,440          
  4.50% > $6,528 4.50% > $6,528          
  5.00% > $7,616 5.00% > $7,616          
  5.40% > $8,704 5.40% > $8,704          
Montana 1.00% > $0 1.00% > $0 $4,830 $9,660 $2,580 $5,160 $2,580
(b, d, o, ff) 2.00% > $3,100 2.00% > $3,100          
  3.00% > $5,500 3.00% > $5,500          
  4.00% > $8,400 4.00% > $8,400          
  5.00% > $11,400 5.00% > $11,400          
  6.00% > $14,600 6.00% > $14,600          
  6.75% > $18,800 6.75% > $18,800          
Nebraska 2.46% > $0 2.46% > $0 $7,350 $14,700 $146 credit score $292 credit score $146 credit score
(e, i, n, dd) 3.51% > $3,440 3.51% > $6,860          
  5.01% > $20,590 5.01% > $41,190          
  6.84% > $33,180 6.84% > $66,360          
Nevada none none n.a. n.a. n.a. n.a. n.a.
New Hampshire (gg) 5% on curiosity and dividends solely 5% on curiosity and dividends solely n.a n.a $2,400 $4,800 n.a.
New Jersey 1.400% > $0 1.400% > $0 n.a. n.a. $1,000 $2,000 $1,500
(a) 1.750% > $20,000 1.750% > $20,000          
  3.500% > $35,000 2.450% > $50,000          
  5.525% > $40,000 3.500% > $70,000          
  6.370% > $75,000 5.525% > $80,000          
  8.970% > $500,000 6.370% > $150,000          
  10.750% > $1,000,000 8.970% > $500,000          
        10.750% > $1,000,000          
New Mexico 1.70% > $0 1.70% > $0 $12,950 $25,900 n.a. n.a. $4,000
(n, nn) 3.20% > $5,500 3.20% > $8,000          
  4.70% > $11,000 4.70% > $16,000          
  4.90% > $16,000 4.90% > $24,000          
  5.90% > $210,000 5.90% > $315,000          
New York 4.00% > $0 4.00% > $0 $8,000 $16,050 n.a. n.a. $1,000
(a, j) 4.50% > $8,500 4.50% > $17,150          
  5.25% > $11,700 5.25% > $23,600          
  5.85% > $13,900 5.85% > $27,900          
  6.25% > $80,650 6.25% > $161,550          
  6.85% > $215,400 6.85% > $323,200          
  9.65% > $1,077,550 9.65% > $2,155,350          
  10.30% > $5,000,000 10.30% > $5,000,000          
  10.90% > $25,000,000 10.90% > $25,000,000          
North Carolina 4.99% > $0 4.99% > $0 $12,750 $25,500 n.a. n.a. n.a.
North Dakota 1.10% > $0 1.10% > $0 $12,950 $25,900 n.a. n.a. n.a.
(ok, p, w) 2.04% > $40,525 2.04% > $67,700          
  2.27% > $98,100 2.27% > $163,550          
  2.64% > $204,675 2.64% > $249,150          
  2.90% > $445,000 2.90% > $445,000          
Ohio 2.765% > $25,000 2.765% > $25,000 n.a. n.a. $2,400 $4,800 $2,400
(a, d, o, hh) 3.226% > $44,250 3.226% > $44,250          
  3.688% > $88,450 3.688% > $88,450          
  3.990% > $110,650 3.990% > $110,650          
Oklahoma 0.25% > $0 0.25% > $0 $6,350 $12,700 $1,000 $2,000 $1,000
(n) 0.75% > $1,000 0.75% > $2,000          
  1.75% > $2,500 1.75% > $5,000          
  2.75% > $3,750 2.75% > $7,500          
  3.75% > $4,900 3.75% > $9,800          
  4.75% > $7,200 4.75% > $12,200          
Oregon 4.75% > $0 4.75% > $0 $2,420 $4,840 $219 credit score $436 credit score $219 credit score
(a, b, e, ok, i, n, ii, rr) 6.75% > $3,650 6.75% > $7,300          
  8.75% > $9,200 8.75% > $18,400          
  9.90% > $125,000 9.90% > $250,000          
Pennsylvania  (a) 3.07% > $0 3.07% > $0 n.a. n.a. n.a. n.a. n.a.
Rhode Island 3.75% > $0 3.75% > $0 $9,300 $18,600 $4,350 $8,700 $4,350
(e, dd, jj) 4.75% > $68,200 4.75% > $68,200          
  5.99% > $155,050 5.99% > $155,050          
South Carolina 0.00% > $0 0.00% > $0 $12,950 (w) $25,900 (w) n.a. n.a. $4,300 (o)
(p, dd) 3.00% > $3,200 3.00% > $3,200          
  4.00% > $6,410 4.00% > $6,410          
  5.00% > $9,620 5.00% > $9,620          
  6.00% > $12,820 6.00% > $12,820          
  7.00% > $16,040 7.00% > $16,040          
South Dakota none none n.a. n.a. n.a. n.a. n.a.
Tennessee none none n.a. n.a. n.a. n.a. n.a.
Texas none none n.a. n.a. n.a. n.a. n.a.
Utah (i, kk) 4.95% > $0 4.95% > $0 $777 credit score (e)  $1,554 credit score (e) n.a. n.a. $1,750 credit score (o)
Vermont 3.35% > $0 3.35% > $0 $6,350 $12,700 $4,350 $8,700 $4,350
(ok, o, ll, qq) 6.60% > $40,950 6.60% > $68,400          
  7.60% > $99,200 7.60% > $165,350          
  8.75% > $206,950 8.75% > $251,950          
Virginia 2.00% > $0 2.00% > $0 $4,500 $9,000 $930 $1,860 $930
(n) 3.00% > $3,000 3.00% > $3,000          
  5.00% > $5,000 5.00% > $5,000          
  5.75% > $17,000 5.75% > $17,000          
Washington 7.0% on capital positive factors revenue solely 7.0% on capital positive factors revenue solely $250,000 $250,000 n.a. n.a. n.a.
West Virginia 3.00% > $0 3.00% > $0 n.a. n.a. $2,000 $4,000 $2,000
(a, n) 4.00% > $10,000 4.00% > $10,000          
  4.50% > $25,000 4.50% > $25,000          
  6.00% > $40,000 6.00% > $40,000          
  6.50% > $60,000 6.50% > $60,000          
Wisconsin 3.54% > $0 3.54% > $0 $11,790 $21,820 $700 $1,400 $700
(e, n, dd, mm) 4.65% > $12,760 4.65% > $17,010          
  5.30% > $25,520 5.30% > $34,030          
  7.65% > $280,950 7.65% > $374,600          
Wyoming none none n.a. n.a. n.a. n.a. n.a.
D.C. 4.00% > $0 4.00% > $0 $12,950 $25,900 n.a. n.a. n.a.
(w) 6.00% > $10,000 6.00% > $10,000          
  6.50% > $40,000 6.50% > $40,000          
  8.50% > $60,000 8.50% > $60,000          
  9.25% > $250,000 9.25% > $250,000          
  9.75% > $500,000 9.75% > $500,000          
  10.75% > $1,000,000 10.75% > $1,000,000          

(a) Native revenue taxes are excluded. Eleven states have county- or city-level revenue taxes; the common charges expressed as a share of AGI inside every jurisdiction are: 0.12% in Alabama; 0.01% in Delaware; 0.38% in Indiana; 0.12% in Iowa; 1.48% in Kentucky; 2.69% in Maryland; 0.22% in Michigan; 0.27% in Missouri; 1.69% in New York; 1.93% in Ohio; and 1.34% in Pennsylvania. In California, Colorado, Kansas, New Jersey, Oregon, and West Virginia, some jurisdictions have payroll taxes, flat-rate wage taxes, or curiosity and dividend revenue taxes. See Jared Walczak, “Native Earnings Taxes in 2019,” Tax Basis, July 30, 2019, https://taxfoundation.org/local-income-taxes-2019/.

(b) These states permit some or all of federal revenue tax paid to be deducted from state taxable revenue.

(c) For single taxpayers with AGI beneath $23,500, the usual deduction is $2,500. This normal deduction quantity is lowered by $25 for each extra $500 of AGI, to not fall beneath $2,000. For Married Submitting Joint (MFJ) taxpayers with AGI beneath $23,500, the usual deduction is $7,500. This normal deduction quantity is lowered by $175 for each extra $500 of AGI, to not fall beneath $4,000. For all taxpayers with AGI of $20,000 or much less and claiming a dependent, the dependent exemption is $1,000. This quantity is lowered to $500 per dependent for taxpayers with AGI above $20,000 and equal to or lower than $100,000. For taxpayers with greater than $100,000 in AGI, the dependent exemption is $300 per dependent.

(d) Statutory tax charges and brackets for 2022 are proven. Brackets are adjusted yearly for inflation, however 2022 inflation changes weren’t out there as of publication.

(e) Normal deduction and/or private exemption is adjusted yearly for inflation. Inflation-adjusted quantities for tax yr 2022 are proven.

(f) Arizona’s normal deduction might be adjusted upward by an quantity equal to 25 p.c of the quantity the taxpayer would have claimed in charitable deductions if the taxpayer had claimed itemized deductions.

(g) In lieu of a dependent exemption, Arizona gives a baby tax credit score of $100 per dependent below the age of 17 and $25 per dependent age 17 and older. The credit score begins to part out for taxpayers with federal adjusted gross revenue (FAGI) above $200,000 (single filers) or $400,000 (MFJ).

(h) Charges apply to people incomes greater than $84,500. A separate tax tables exist for people incomes $84,500 or much less, with charges of two p.c on revenue better than or equal to $5,000; 3 p.c on revenue better than or equal to $10,000; 3.4 p.c on revenue better than or equal to $14,300; 5 p.c on revenue better than or equal to $23,600; and 5.5 p.c on revenue better than $39,700 however lower than or equal to $84,500.

(i) Normal deduction or private exemption is structured as a tax credit score.

(j) Connecticut and New York have “tax profit recapture,” by which many high-income taxpayers pay their prime tax price on all revenue, not simply on quantities above the profit threshold.

(ok) Bracket ranges adjusted for inflation annually. Inflation-adjusted bracket widths for 2022 weren’t out there as of publication, so desk displays 2021 inflation-adjusted bracket widths.

(l) Exemption credit part out for single taxpayers by $6 for every $2,500 of federal AGI above $212,288 and for MFJ filers by $12 for every $2,500 of federal AGI above $424,581. The credit score can’t be lowered to beneath zero.

(m) Charges embody the extra psychological well being providers tax on the price of 1 p.c on taxable revenue in extra of $1 million.

(n) State gives a state-defined private exemption quantity for every exemption out there and/or deductible below the Inner Income Code. Below the Tax Cuts and Jobs Act, the non-public exemption is ready at $0 till 2026 however not eradicated. As a result of it’s nonetheless out there, these state-defined private exemptions stay out there in some states however are set to $0 in different states.

(o) Normal deduction and/or private exemption adjusted yearly for inflation, however the 2022 inflation adjustment was not out there at time of publication, so desk displays precise 2021 quantity(s).

(p) Colorado, North Dakota, and South Carolina embody the federal normal deduction of their revenue place to begin.

(q) Connecticut has a posh set of phaseout provisions. For every single taxpayer whose Connecticut AGI exceeds $56,500, the quantity of the taxpayer’s Connecticut taxable revenue to which the three p.c tax price applies shall be lowered by $1,000 for every $5,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds mentioned quantity. Any such quantity may have a tax price of 5 p.c as a substitute of three p.c. Moreover, every single taxpayer whose Connecticut AGI exceeds $200,000 shall pay an quantity equal to $90 for every $5,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds $200,000 however is lower than $500,000, and by an extra $50 for every $5,000, or fraction thereof, by which the taxpayer’s AGI exceeds $500,000, as much as a most cost of $3,150. For every MFJ taxpayer whose Connecticut AGI exceeds $100,500, the quantity of the taxpayer’s Connecticut taxable revenue to which the three p.c tax price applies shall be lowered by $2,000 for every $5,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds mentioned quantity. Any such quantity of Connecticut taxable revenue to which, as supplied within the previous sentence, the three p.c tax price doesn’t apply shall be an quantity to which the 5 p.c tax price shall apply. Every MFJ taxpayer whose Connecticut AGI exceeds $400,000 shall pay, along with the quantity above, an quantity equal to $180 for every $10,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds $400,000, as much as a most of $5,400, and an additional $100 for every $10,000, or fraction thereof, by which Connecticut AGI exceeds $1 million, as much as a mixed most cost of $6,300.

(r) Connecticut taxpayers are additionally given private tax credit (1-75%) primarily based upon adjusted gross revenue.

(s) Connecticut’s private exemption phases out by $1,000 for every $1,000, or fraction thereof, by which a single filer’s Connecticut AGI exceeds $30,000 and a MFJ filer’s Connecticut AGI exceeds $48,000.

(t) Along with the non-public revenue tax charges, Delaware imposes a tax on lump-sum distributions.

(u) Ga. Code §48-7-20(b) gives that Georgia’s prime marginal particular person revenue tax price shall be lowered to five.5 p.c for tax years starting January 1, 2020 or later, and expiring on December 31, 2025, if a joint decision to scale back the speed is ratified by each chambers of the Basic Meeting and the governor on or after Jan. 13, 2020. As of this writing, no such decision has been adopted, so the highest marginal particular person revenue tax price stays at 5.75 p.c.

(v) Moreover, Hawaii permits any taxpayer, aside from an organization, appearing as a enterprise entity in a couple of state and required by legislation to file a return, to report and pay a tax of 0.5 p.c of its annual product sales (1) the place the taxpayer’s solely actions in Hawaii encompass gross sales, (2) when the taxpayer doesn’t personal or lease actual property or tangible private property, and (3) when the taxpayer’s annual product sales in or into Hawaii don’t exceed $100,000. Haw. Rev. Stat. § 235-51 (2015).

(w) Deduction and/or exemption tied to federal tax system. Federal deductions and exemptions are listed for inflation, and the place relevant, the tax yr 2022 inflation-adjusted quantities are proven.

(x) As of June 1, 2017, taxpayers can’t declare the non-public exemption if their adjusted gross revenue exceeds $250,000 (single filers) or $500,000 (MFJ).

(y) $1,000 is a base exemption. If dependents meet sure situations, filers can take an extra $1,500 exemption for every.

(z) Normal deduction and private exemptions are mixed: $4,500 for single and married submitting individually; $9,000 MFJ and head of family.

(aa) Maine’s private exemption begins to part out for taxpayers with revenue exceeding $279,500 (single filers) or $335,400 (MFJ) (2021 inflation changes). The dependent private exemption is structured as a tax credit score and begins to part out for taxpayers with revenue exceeding $200,000 (head of family) or $400,000 (married submitting collectively).

(bb) The usual deduction is 15 p.c of revenue with a minimal of $1,550 and a cap of $2,350 for single filers and married submitting individually filers. The usual deduction is a minimal of $3,100 and capped at $4,700 for MFJ filers, head of family filers, and qualifying widows/ widowers. The minimal and most normal deduction quantities are adjusted yearly for inflation. 2022 inflation-adjusted quantities weren’t introduced as of publication, so 2021 inflation-adjusted quantities are proven.

(cc) The exemption quantity has the next phaseout schedule: If AGI is above $100,000 for single filers and above $150,000 for married filers, the $3,200 exemption begins to be phased out. If AGI is above $150,000 for single filers and above $200,000 for married filers, the exemption is phased out fully.

(dd) Bracket ranges adjusted for inflation annually. Inflation-adjusted bracket ranges for 2022 are proven.

(ee) For taxpayers whose AGI exceeds $103,025 (married submitting individually) or $206,050 (all different filers), Minnesota’s normal deduction is lowered by the lesser of three p.c of the surplus of the taxpayer’s federal AGI over the relevant quantity or 80 p.c of the usual deduction in any other case allowable.

(ff) Montana filers’ normal deduction is 20 p.c of AGI. For single taxpayers, the deduction should be between $2,140 and $4,830. For joint taxpayers, the deduction should be between $4,280 and $9,660.

(gg) New Hampshire doesn’t tax earned revenue, however has a tax (at the moment phasing out) on curiosity and dividend revenue.

(hh) Ohio’s private and dependent exemptions are $2,400 for an AGI of $40,000 or much less, $2,150 if AGI is greater than $40,000 however lower than or equal to $80,000, and $1,900 if AGI is larger than $80,000.

(ii) The non-public exemption credit score shouldn’t be allowed if federal AGI exceeds $100,000 for single filers or $200,000 for MFJ.

(jj) The phaseout vary for the usual deduction, private exemption, and dependency exemption is $217,050 to $241,850. For taxpayers with modified Federal AGI exceeding $241,850, no normal deduction, private exemption, or dependency exemption is obtainable.

(kk) The usual deduction is taken within the type of a nonrefundable credit score of 6 p.c of the federal normal or itemized deduction quantity, excluding the deduction for state or native revenue tax. This credit score phases out at 1.3 cents per greenback of AGI above $15,095 ($30,190 for married {couples}).

(ll) For taxpayers with federal AGI that exceeds $150,000, the taxpayer pays the better of state revenue tax or 3 p.c of federal AGI.

(mm) The usual deduction begins to part out at $16,989 in revenue for single filers and $24,519 in revenue for joint filers. The usual deduction phases out to zero at $115,240 for single filers and $134,845 for joint filers.

(nn) In lieu of the suspended private exemption, New Mexico gives a deduction of $4,000 for all however certainly one of a taxpayer’s dependents.

(oo) Taxpayers with internet revenue better than or equal to $84,501 however not better than $90,600 shall cut back the quantity of tax due by deducting a bracket adjustment quantity. The bracket adjustment quantity begins at $610 for people with internet revenue of $84,501 and reduces by $10 for each $100 in extra internet revenue.

(pp) Arizona H.B. 1828, enacted in 2021, reduces charges and the variety of brackets for Tax 12 months 2022. Nevertheless, implementation of that legislation has been suspended pending the end result of Prop. 307, to be determined in November 2022, so H.B. 1828’s charges usually are not proven right here.

(qq) Taxpayers additionally obtain an extra deduction of $1,050 for every normal deduction field checked on federal Kind 1040.

(rr) California and Oregon don’t totally index their prime brackets.  

Notable 2022 State Particular person Earnings Tax Modifications

Final yr was a historic yr for revenue tax price reductions, with extra states lowering their particular person revenue tax charges in a single yr than the U.S. has seen for the reason that years following the federal tax reform of 1986. In 2021 alone, 13 states enacted or carried out particular person revenue tax price reductions. A few of these price reductions have been efficient beginning January 1, 2022; some have been retroactive to January 1, 2021; and others are scheduled to take impact sooner or later. A number of the scheduled future price reductions depend on tax triggers, the place price reductions will happen as soon as sure income benchmarks are met. Different price reductions are set to happen on particular future dates, with charges phasing down incrementally over time.

New York and the District of Columbia have been the one jurisdictions to enact particular person revenue tax price will increase in 2021.

Notable adjustments to main particular person revenue tax provisions embody the next:

Arizona

Arizona’s 2022 tax adjustments are among the many nation’s most advanced, as they contain—amongst different issues—the unwinding of a previous poll measure. Proposition 208 (2020) had created a 3.5 p.c excessive earners tax atop the state’s current 4.5 p.c prime marginal revenue tax price, functionally yielding a brand new prime price of 8 p.c. Lawmakers successfully undid the ratification by means of laws, reducing the bottom charges to make sure that the mixed prime price by no means exceeded 4.5 p.c. They concurrently adopted income triggers that would create a decrease, single-rate tax.

Senate Invoice 1828 would have begun the state’s conversion from a graduated particular person revenue tax to a flat particular person revenue tax on January 1, 2022.[3] The transition would have initially collapsed the 4 present tax brackets into two. Single tax filers with taxable revenue as much as $27,272 (double if submitting collectively) would have been taxed at a price of two.55 p.c. Any taxable revenue exceeding that quantity would have been taxed at a price of two.98 p.c. Pending income triggers, the tax would finally have been lowered to 2.5 p.c, no matter revenue stage. Nevertheless, sufficient signatures have been gathered through petition that voters will now be requested to approve or reject the flat tax through poll measure (Proposition 307) within the November 2022 election. Within the meantime, implementation of S.B. 1828 has been suspended.

Pending the end result of Proposition 307, Arizona’s prime marginal price is capped at 4.5 p.c, regardless that a remaining determination on Proposition 208 remains to be pending judicial assessment.[4] For the reason that Arizona Supreme Court docket refused to droop the legislation[5] whereas a decrease court docket adjudicates particulars pertaining to the measure’s income allocation, the surtax stays in impact. Due to this fact, policymakers enacted S.B. 1827 to counteract the consequences of Proposition 208 by routinely lowering the highest marginal particular person revenue tax price by an quantity that may maintain the mixed surtax and prime price from exceeding 4.5 p.c.

Lastly, below provisions of H.B. 2838,[6] Arizona will permit partnerships, restricted legal responsibility corporations (LLCs), and S firms to pay a 4.5 p.c tax on the entity stage as a substitute of getting all business-related revenue go by means of to the person revenue tax. The legislation was handed as a SALT deduction cap workaround.[7]

Arkansas

Arkansas’s prime particular person revenue tax price declined from 5.9 p.c to five.5 p.c on account of laws handed through the state’s December 2021 particular session.[8] Many states have a number of tax brackets, however Arkansas is exclusive in having fully totally different tax price schedules that adjust in line with revenue stage. In 2022, the tax price for practically each low- and middle-income earner was lowered as legislators voted to break down the 2 decrease tax tables into one.

District of Columbia

As of January 1, 2022, Washington, D.C.’s particular person revenue tax modified significantly. Enacted through the Fiscal 12 months 2022 Price range Assist Act of 2021, the District elevated the variety of tax brackets from six to seven and altered lots of the thresholds.[9] Modifications start for people with a D.C. taxable revenue between $250,000 and $500,000. They’re assessed a tax of $19,560 plus 9.25 p.c of the surplus over $250,000. These with taxable revenue over $500,000 however not over $1 million pays $42,775 plus 9.75 p.c of the surplus over $500,000. Lastly, people with taxable revenue over $1 million shall be taxed $91,525 plus 10.75 p.c on any quantity over $1 million.

Georgia

On March 22, 2021, Georgia enacted H.B. 593, which elevated the usual deduction for single filers from $4,600 to $5,400 in tax yr 2022.[10]  The usual deduction for joint filers elevated from $6,000 to $7,100.

Idaho

On Could 10, 2021, Governor Brad Little (R) signed H.B. 380, lowering the state’s prime marginal particular person revenue tax price from 6.925 to six.5 p.c whereas consolidating seven particular person revenue tax brackets into 5. These adjustments have been retroactive to January 1, 2021. Below H.B. 380, Idaho’s prime marginal particular person revenue tax price and third-lowest price have been each eradicated. The remaining charges have been every lowered by 0.125 share factors, aside from the second-lowest price, which was lowered by 0.025 share factors.

On February 4, 2022, Governor Little signed H.B. 436, which additional consolidates Montana’s 5 tax brackets to 4.[11]  Below the brand new legislation, which is retroactive to January 1, 2022, the 5.5 p.c bracket was eradicated, and the second-lowest price was lowered from 3.1 p.c to three.0 p.c. The highest marginal price stays at 6.5 p.c.

Kansas

Kansas enacted S.B. 50, which elevated the usual deduction for single filers from $3,000 to $3,500. Joint filers’ normal deduction will enhance from $7,500 to $8,000. The change was made retroactive to tax yr 2021.

Louisiana

Louisiana’s particular person revenue tax seems to be considerably totally different than it did in 2021. With the approval of Modification No. 2 within the normal election held November 13, 2021,[12] the utmost particular person revenue tax price permitted by the state structure decreased from 6 p.c to 4.75 p.c.[13] Contingent laws then lowered particular person revenue tax charges from 2 p.c, 4 p.c, and 6 p.c to 1.85 p.c, 3.5 p.c, and 4.25 p.c, respectively.[14] As of the primary of the yr, Louisiana’s prime marginal price is the fifth-lowest within the nation. Previous to 2022, the Pelican State’s prime price ranked twenty fifth.

Mississippi

As of January 1, 2022, Mississippi has accomplished the phaseout of its 3 p.c particular person revenue tax brackets. The state has been slowly eliminating its lowest tax bracket by exempting $1,000 increments yearly since 2018. The Magnolia State now successfully exempts the primary $5,000 of taxable revenue whereas assessing a 4 p.c tax on the following $5,000 and a 5 p.c tax on all taxable revenue above $5,000.

Montana

Below S.B. 159, enacted on Could 6, 2021, Montana’s prime marginal particular person revenue tax price was lowered from 6.9 to six.75 p.c on January 1, 2022.[15] Extra adjustments enacted through S.B. 399 will take impact in subsequent years.[16] These embody consolidating the state’s seven particular person revenue tax brackets into two, with charges of 4.7 and 6.5 p.c by 2024. The state may even undertake federal taxable revenue because the revenue tax place to begin, thereby bringing within the federal normal deduction. Importantly, S.B. 399 will double the bracket widths for married filers, thereby eradicating the marriage penalty that at the moment exists within the state’s revenue tax code.

New York

Whereas the change is retroactive to January 1, 2021, New York’s particular person revenue tax enhance is notable as certainly one of solely two particular person revenue tax price will increase carried out within the final yr. As a part of the FY 2022 Enacted Price range Invoice, New York’s prime marginal price for particular person revenue taxation elevated from 8.2 p.c to 10.9 p.c. Importantly, two tax brackets have been added to the person revenue tax code. People at the moment are assessed a tax of 9.65 p.c on New York taxable revenue better than $1,616,450 however no more than $5 million. People are additionally topic to a ten.3 p.c tax on taxable revenue better than $5 million however no more than $25 million. Any taxable revenue exceeding $25 million is topic to the highest marginal price of 10.9 p.c.

These incomes between $13,900 and $215,400 are topic to marginal tax decreases because the corresponding charges decreased from 5.9 p.c and 6.33 p.c to five.85 p.c and 6.25 p.c, respectively. The 5.97 p.c marginal price on revenue between $21,400 and $80,650 was eradicated.

North Carolina

Below provisions of North Carolina’s biennial funds invoice signed by Governor Roy Cooper (D) on November 18, 2021, the state’s flat revenue tax price was lowered to 4.99 p.c on January 1, 2022.[17] That is the primary of six incremental reductions that can in the end cut back the speed to three.99 p.c by tax yr 2027.

Ohio

On July 1, 2021, Governor Mike DeWine (R) signed H.B. 110, the funds for the FY 2022-23 biennium. The legislation consolidated the state’s earlier 5 particular person revenue tax brackets into 4 and lowered every of the charges retroactive to January 1, 2021.[18] Particularly, the legislation lowered the highest marginal price from 4.797 to three.99 p.c and lowered the opposite charges by 3 p.c throughout the board. The revenue stage at which the primary tax price kicks in can be elevated from $22,150 to $25,000, offering focused tax reduction on the decrease finish of the revenue spectrum.[19]

Oklahoma

Oklahoma carried out quite a few adjustments to the person revenue tax in 2022 together with an across-the-board price discount of 0.25 p.c.[20] The highest price declined from 5 to 4.75 p.c, making it the ninth-lowest prime marginal price amongst states that levy a person revenue tax. The identical legislation additionally restored the refundability of the state’s earned revenue tax credit score (EITC), which was made nonrefundable in 2016.

Wisconsin

On July 8, 2021, Gov. Tony Evers (D) authorized the biennial funds for FYs 2022-23 (A.B. 68) with partial vetoes.[21] One of many authorized provisions within the funds was a discount of the second-highest particular person revenue tax price from 6.27 to five.3 p.c, retroactive to January 1, 2021. At 6.27 p.c, Wisconsin’s penultimate particular person revenue tax price was increased than the prime marginal charges in 23 states that levy a person revenue tax. Kicking in at simply over $24,000 in taxable revenue for single filers and $32,000 for married {couples}, Wisconsin’s second-highest price impacts the overwhelming majority of the state’s taxpayers, with most paying extra in revenue taxes to Wisconsin than they might with the identical quantity of revenue in most different states.

2015 – 2022 State Particular person Earnings Tax Charges and Brackets 


[1] U.S. Census Bureau, “2020 State Authorities Tax Tables,” Fiscal 12 months 2020, https://www.census.gov/information/tables/2020/econ/stc/2020-annual.html

[2] See Jared Walczak, “Inflation Adjusting State Tax Codes: A Primer,” Tax Basis, Oct. 29, 2019, https://www.taxfoundation.org/inflation-adjusting-state-tax-codes/.

[3] S.B. 1828, fifty fifth Leg., First Reg. Sess. (Ariz., 2021), https://www.azleg.gov/legtext/55leg/1R/payments/SB1828S.pdf.

[4] Howard Fischer, “Court docket Guidelines Prop 208 Surcharge Can Keep – For Now,” Arizona Capitol Instances, Aug. 19, 2021, https://www.azcapitoltimes.com/information/2021/08/1t9/court-rules-prop-208-surcharge-can-stay-for-now/.

[5] Fann v. Arizona, 493 P.3d 246 (Ariz., 2021).

[6] H.B. 2838, fifty fifth Leg., First Reg. Sess. (Ariz., 2021,) https://apps.azleg.gov/BillStatus/GetDocumentPdf/490546.

[7] Ibid.

[8] S.B. 1, 93rd Gen. Assy., Second Spec. Sess. (Ark., 2021). https://www.arkleg.state.ar.us/Payments/FTPDocument?path=%2FBillspercent2F2021S2percent2FPublicpercent2FSB1.pdf.

[9] See Invoice 24-285, “Modification within the Nature of a Substitute” (D.C., 2021).

[10] H.B. 593, 2021 Gen. Assy., Reg. Sess. (Ga, 2021).

[11] H.B. 436, 66th Leg., Second Reg. Sess. (Idaho, 2022).

[12] See Louisiana Secretary of State, “Assertion of Proposed Constitutional Amendments October 9, 2021,” https://www.sos.la.gov/ElectionsAndVoting/PublishedDocuments/ProposedConstitutionalAmendments2021Summaries.pdf.

[13] S.B. 159, 2021 Leg., Reg. Sess. (La, 2021).

[14] H.B. 278, 2021 Leg., Reg. Sess. (La, 2021).

[15] S.B. 159, 67th Leg., Reg. Sess. (Mont, 2021).

[16] S.B. 399, 67th Leg., Reg. Sess. (Mont, 2021).

[17] S.B. 105, 2021 Gen. Assy., Reg. Sess. (N.C., 2021).

[18] Ulrik Boesen, “Ohio Lawmakers Agree on Earnings Tax Cuts and Distant Work Tax Aid,” Tax Basis, June 30, 2021, https://www.taxfoundation.org/ohio-budget-tax-cuts/.

[19] Paul Williams, “Ohio Enacts Price range With $1.6B Tax Cuts, Teleworker Refunds,” Law360, July 1, 2021, https://www.law360.com/tax-authority/articles/1399539/ohio-enacts-budget-with-1-6b-tax-cuts-teleworker-refunds-.

[20] H.B. 2962, 2021 Leg., Reg. Sess. (Okla., 2021).

[21] A.B. 68, 2021 Assy., Reg. Sess. (Wis, 2021).



Supply hyperlink