{"id":15497,"date":"2021-04-28T07:00:00","date_gmt":"2021-04-28T12:00:00","guid":{"rendered":"https:\/\/resource-center.hrblock.com\/?p=15497"},"modified":"2025-04-24T14:51:14","modified_gmt":"2025-04-24T19:51:14","slug":"highest-lowest-taxed-states","status":"publish","type":"post","link":"https:\/\/hrbcomlnp.hrblock.com\/tax-center\/irs\/tax-brackets-and-rates\/highest-lowest-taxed-states\/","title":{"rendered":"Income tax by state"},"content":{"rendered":"\n<p>Did you know\u2026 not every state taxes the same? Unlike the federal tax rates, income tax by state varies. So, not every state has the same tax rate\u2014and some are income tax-free. Tax on personal income varies from state to state and can range from 0 to 13.3%.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright\"><img loading=\"lazy\" decoding=\"async\" width=\"240\" height=\"160\" src=\"https:\/\/hrbcomlnp.hrblock.com\/tax-center\/wp-content\/uploads\/2021\/04\/State-tax-rate.jpg\" alt=\"tax rates\" class=\"wp-image-56933\"\/><\/figure><\/div>\n\n\n<p>The states with the highest taxes are California, Hawaii, Oregon, Minnesota, Iowa, New Jersey, New York, and Vermont where residents pay 8% or higher on state income tax. Meanwhile,&nbsp;residents of&nbsp;Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming do not pay any state individual income tax. Makes you think twice about where you live, right?!<\/p>\n\n\n\n<p>In addition to the highest or lowest state tax rates below, you can view more information about other <a href=\"https:\/\/www.hrblock.com\/tax-center\/filing\/states\/\">states tax rates<\/a> and taxes.<\/p>\n\n\n\n<p>Learn more about the highest taxed states as well as the states with lowest taxes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-highest-taxed-states\">Highest taxed states<\/h2>\n\n\n\n<p>When it comes to income tax, state tax rates vary. Some are on the higher side. In fact, the states with the highest tax in the U.S. in 2021 are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>California (13.3%)<\/li>\n\n\n\n<li>Hawaii (11%)<\/li>\n\n\n\n<li>New Jersey (10.75%)<\/li>\n\n\n\n<li>Oregon (9.9%)<\/li>\n\n\n\n<li>Minnesota (9.85%)<\/li>\n\n\n\n<li>District of Columbia (8.95%)<\/li>\n\n\n\n<li>New York (8.82%)<\/li>\n\n\n\n<li>Vermont (8.75%)<\/li>\n\n\n\n<li>Iowa (8.53%)<\/li>\n\n\n\n<li>Wisconsin (7.65%)<\/li>\n<\/ul>\n\n\n\n<p>(Please note, these states have progressive tax rates, so the rates indicated above are the highest tax rate by state.)<\/p>\n\n\n\n<p>Keep in mind, the states with the highest tax can vary year over year, so check back each year with your state treasury\/tax department.<\/p>\n\n\n\n<div class=\"wp-block-create-block-hrb-single-override-cta\" class=\"wp-block-create-block-hrb-single-override-cta\" style=\"background-color:#005d1f\"><div class=\"hrb-single-override-cta--image\" style=\"background-image:url(&quot;https:\/\/www.hrblock.com\/tax-center\/wp-content\/themes\/hrb_tic\/img\/on-laptop-at-desk-graphic.png&quot;);background-size:contain;background-position:center;background-repeat:no-repeat\"><\/div><div class=\"hrb-single-override-cta--copy #ffffff\"><h3 class=\"main-heading\">File with H&amp;R Block to get your max refund<\/h3><div class=\"quick-links-list\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.hrblock.com\/online-tax-filing\/\">File online<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.hrblock.com\/tax-offices\/?app_method=GENERAL_TAX_PREP_METHOD\">File with a tax pro<\/a><\/div>\n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-states-with-the-lowest-taxes\">States with the lowest taxes<\/h2>\n\n\n\n<p>For taxpayers in most U.S. states, you file federal and state income taxes. However, that\u2019s not the case for every state. If you\u2019re a taxpayer in one of the seven <a href=\"https:\/\/www.hrblock.com\/tax-center\/filing\/states\/states-with-no-income-tax\/\">states without an individual income tax<\/a>, you don\u2019t have to file a state income tax return. Here are the states with the lowest taxes (tax-free).<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Alaska<\/li>\n\n\n\n<li><a href=\"https:\/\/www.hrblock.com\/tax-center\/filing\/states\/florida-tax-information\/\">Florida<\/a><\/li>\n\n\n\n<li>Nevada<\/li>\n\n\n\n<li>South Dakota<\/li>\n\n\n\n<li><a href=\"https:\/\/www.hrblock.com\/tax-center\/filing\/states\/taxes-in-texas\/\">Texas<\/a><\/li>\n\n\n\n<li>Washington<\/li>\n\n\n\n<li>Wyoming<\/li>\n<\/ul>\n\n\n\n<p>Additionally, New Hampshire and Tennessee don\u2019t have income taxes, but they tax dividend and interest income. (This will phase out. Both states will be income tax free by 2025.)<\/p>\n\n\n\n<p>Remember, if you live and work in a state without individual income taxes, you don\u2019t pay taxes on your income from Social Security, pensions, or retirement plans. However, you are still subject to other taxes, including local, property taxes, and sales taxes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-other-state-tax-information\">Other state tax information<\/h2>\n\n\n\n<p>If you\u2019ve recently filed your taxes and are curious about the status of your <a href=\"https:\/\/www.hrblock.com\/tax-center\/filing\/states\/wheres-my-refund-all-states\/\">state tax refund<\/a> information, we can help!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-general-procedure-for-filing-state-and-federal-income-taxes\">General procedure for filing state and federal income taxes<\/h2>\n\n\n\n<p>When you file your <a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/other-income\/income-tax\/\">federal income taxes<\/a>, you will likely fill out additional state tax forms that go to your given state\u2019s revenue agency. Both federal and state taxes are drawn from your paycheck if you\u2019re a traditional, <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/form-w2\/\">W-2 employee<\/a>. As you file your taxes, you may either owe money or get a refund, depending on the amount you withheld throughout the year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-beyond-state-tax-rates-get-help-filing-state-and-federal-taxes\">Beyond state tax rates: Get help filing state and federal taxes<\/h2>\n\n\n\n<p>If you move to a different state within a tax year, or work in one state and live in another, state taxes can get a little more complex. \u00a0<\/p>\n\n\n\n<p>Need help beyond state tax rates? H&amp;R Block has many ways to help you file your state and federal income tax returns. If you want to tackle taxes yourself, use our\u202f<a href=\"https:\/\/www.hrblock.com\/tax-software\/state-editions\/\" target=\"_blank\" rel=\"noreferrer noopener\">state tax filing software<\/a>. Or you can choose <a href=\"https:\/\/www.hrblock.com\/filing-options-and-products\/\" target=\"_blank\" rel=\"noreferrer noopener\">online tax preparation<\/a>\u202fwith tax pros with state-specific tax expertise.\u00a0<\/p>\n\n\n\n<p>Related state topics: No income tax states,<em>\u202f<\/em><a href=\"https:\/\/www.hrblock.com\/tax-center\/filing\/states\/sales-tax-by-state-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">state sales tax<\/a><em>.<\/em>\u00a0<\/p>\n\n\n\n<p>If you need help understanding state tax rates\u2014or filing state and federal income tax returns, H&amp;R Block can help. We can assist in a number of ways. If you want to tackle taxes yourself, use our\u00a0<a href=\"https:\/\/www.hrblock.com\/tax-software\/state-editions\/\">state tax filing software<\/a>. Or you can choose\u00a0<a href=\"https:\/\/www.hrblock.com\/filing-options-and-products\/\">online tax preparation<\/a>\u00a0with tax pros with state-specific tax expertise.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Did you know\u2026 not every state taxes the same? Unlike the federal tax rates, income tax by state varies. So, not every state has the same tax rate\u2014and some are income tax-free. Tax on personal income varies from state to state and can range from 0 to 13.3%. The states with the highest taxes are [&hellip;]<\/p>\n","protected":false},"author":406,"featured_media":26772,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25,56],"tags":[],"class_list":["post-15497","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-irs","category-tax-brackets-and-rates"],"acf":[],"yoast_head":"<title>Lowest &amp; Highest Taxed States | H&amp;R Block blog<\/title>\n<meta name=\"description\" content=\"Ever wonder what the lowest and highest taxed states are? State taxes vary from state to state, ranging from 0 - 13.3%. Learn more about state tax rates here.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/hrbcomlnp.hrblock.com\/tax-center\/irs\/tax-brackets-and-rates\/highest-lowest-taxed-states\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Income tax by state\" \/>\n<meta property=\"og:description\" content=\"Ever wonder what the lowest and highest taxed states are? State taxes vary from state to state, ranging from 0 - 13.3%. 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