Best And Worst States For Personal Income Taxes

The Top Five And The Bottom Five

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.

Best States No. 11: Michigan

Michigan's individual tax rate is 4.3 percent.

Best States No. 10: North Dakota

North Dakota's individual tax rate is 4.0 percent.

Best States No. 9: Indiana

Indiana's individual tax rate is 3.4 percent.

Best States No. 8: Pennsylvania

Pennsylvania's individual tax rate is 3.1 percent.

Best States No. 1: States With No Personal Income Tax

Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming all have no individual income taxes.

Worst States No. 46: New Jersey

New Jersey's individual tax rate is 9.0 percent (tied with Iowa).

Worst States No. 46: Iowa

Iowa's individual tax rate is 9.0 percent (tied with New Jersey).

Worst States No. 48: Oregon

Oregon's individual tax rate is 9.9 percent.

Worst States No. 49: Hawaii

Hawaii's individual tax rate is 11.0 percent.

Worst States No. 50: California

California's individual tax rate is 13.3 percent.