Best And Worst States For Personal Income Taxes2:00 PM EST Mon. Sep. 30, 2013
Some states rely heavily on individual income taxes to fund government programs and services. Others eschew income taxes in favor of sales taxes and other revenue sources. Here's our analysis of the states with the highest and the lowest personal income taxes.
CRN included personal income taxes in its analysis of the best and worst states for starting a solution provider business.
The rankings are based on data from the Federation of Tax Administrators and the Tax Foundation.
Note: Seven states have no personal income tax and are all listed as No. 1. The runners-up are ranked No. 11 to No. 8.
Michigan's individual tax rate is 4.3 percent.
North Dakota's individual tax rate is 4.0 percent.
Indiana's individual tax rate is 3.4 percent.
Pennsylvania's individual tax rate is 3.1 percent.
Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming all have no individual income taxes.
New Jersey's individual tax rate is 9.0 percent (tied with Iowa).
Iowa's individual tax rate is 9.0 percent (tied with New Jersey).
Oregon's individual tax rate is 9.9 percent.
Hawaii's individual tax rate is 11.0 percent.
California's individual tax rate is 13.3 percent.