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.