These U.S. States Have the Lowest Flat State Revenue Tax Charges

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Do you reside in considered one of these states?

Key factors

  • Some states have a flat revenue tax charge that applies to all residents no matter revenue.
  • Colorado, Kentucky, and Michigan all make the listing for lowest flat state revenue tax charges.

Paying state and federal taxes on earned revenue is the norm for a lot of Individuals. However tax charges can differ considerably from state to state. 9 states have a flat tax charge for all residents. Meaning residents with low incomes and excessive incomes all pay taxes on the similar charge. These states are:

  • Colorado
  • Illinois
  • Indiana
  • Kentucky
  • Massachusetts
  • Michigan
  • North Carolina
  • Pennsylvania
  • Utah

There are two different states value mentioning on this dialogue: New Hampshire and Washington. These two states do not levy state revenue tax on common earned revenue. They do, nonetheless, impose a flat charge tax for different tax conditions.

New Hampshire: Residents pay a tax charge of 5% on curiosity and dividends.

Washington: Residents are chargeable for paying a 7% tax on the sale or change of long-term capital belongings if their income exceed $250,000 yearly.

The states with the bottom flat state revenue tax charges

This is a better take a look at the states with the bottom flat state revenue tax charges primarily based on present tax charges.


Pennsylvania is the state with the bottom flat state revenue tax charge. All residents on this state pay 3.07% on earned revenue.


Indiana’s state revenue tax charge is just not too far off. All residents on this state pay 3.23% on earned revenue.


All Michigan residents pay a 4.25% tax on earned revenue.


Colorado residents pay a tax charge of 4.55% on earned revenue.


Illinois residents pay a 4.95% tax on earned revenue.


Like Illinois residents, Utah residents pay a tax charge of 4.95% on earned revenue.

The opposite three states with flat state revenue tax charges (North Carolina, Massachusetts, and Kentucky) cost 5% or extra.

What about states with no flat charge tax?

Some states haven’t got a flat charge state revenue tax. It is value noting there are some states with decrease tax charges than the charges listed above — particularly for residents with a decrease revenue.

For the tax 12 months 2021, Ohio residents with a taxable revenue of as much as $25,000 pay a 0% state revenue tax charge — which implies they are not chargeable for paying any state revenue tax.

North Dakota’s lowest state revenue tax charge is 1.1%. This charge applies to single earners with an revenue of as much as $40,525. Married {couples} submitting collectively with an revenue of as much as $67,700 additionally pay this charge.

Should you’ve not too long ago moved to a brand new state or are planning to maneuver sooner or later, you’ll want to analysis the state’s revenue tax system so you already know what to anticipate.

Three tricks to make tax season a breeze

It is the uncommon one that appears ahead to tax season, however submitting your taxes does not must be a headache. Listed below are some tricks to get you began.

  1. Get organized. When you’ve got but to start submitting your taxes, now is a superb time to get organized. Guarantee you’ve your whole tax and monetary paperwork able to go so the submitting course of is easy.
  2. Do not delay. It is best to file sooner moderately than later. It might take you longer than you suppose to file your return. Plus, the IRS is backlogged, so there are important delays. Should you’re anticipating a tax refund, you may wish to file ASAP to attenuate fee delays.
  3. Use tax software program. Should you want some steering when submitting, tax software program could make the method easy. Try our greatest tax software program listing to be taught extra.

The Ascent’s greatest tax software program for 2022

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