According to excellent research completed by Andrey Yushkov of the Tax Foundation, here are the key findings of state individual income tax rates and brackets, 2024.

• Individual income taxes are a major source of state government revenue, constituting 38 percent of state tax collections in fiscal year 2022, the latest year for which data are available.
• Forty-three states and the District of Columbia levy individual income taxes. Forty-one tax wage and salary income. New Hampshire exclusively taxes dividend and interest income while Washington only taxes capital gains income. Seven states levy no individual income tax at all.
• Among those states taxing wages, 12 have a single-rate tax structure, with one rate applying to all taxable income. Conversely, 29 states and the District of Columbia levy graduated-rate income taxes, with the number of brackets varying widely by state. Hawaii has 12 brackets, the most in the country.
• States’ approaches to income taxes vary in other details as well. Some states double their single-filer bracket widths for married filers to avoid a “marriage penalty.” Some states index tax brackets, exemptions, and deductions for inflation; many others do not. Some states tie their standard deduction and personal exemption to the federal tax code, while others set their own or offer none at all.

Individual income taxes are a major source of state government revenue, accounting for 38 percent of state tax collections. Their significance in public policy is further enhanced by individuals being actively responsible for filing their income taxes, in contrast to the indirect payment of sales and excise taxes.

Forty-three states levy individual income taxes. Forty-one tax wage and salary income. New Hampshire exclusively taxes dividend and interest income while Washington only taxes capital gains income. Seven states levy no individual income tax at all.

Of those states taxing wages, 12 have single-rate tax structures, with one rate applying to all taxable income. Conversely, 29 states and the District of Columbia levy graduated-rate income taxes, with the number of brackets varying widely by state. Montana, for example, is one of several states with a two-bracket income tax system. At the other end of the spectrum, Hawaii has 12 brackets. Top marginal rates span from Arizona’s and North Dakota’s 2.5 percent to California’s 13.3 percent. (California also imposes a 1.1 percent payroll tax on wage income, bringing the all-in top rate to 14.4 percent as of this year.)

In some states, a large number of brackets are clustered within a narrow income band. For example, Virginia’s taxpayers reach the state’s fourth and highest bracket at $17,000 in taxable income. In other states, the top rate kicks in at a much higher level of marginal income. For example, the top rate kicks in at or above $1 million in California (when the “millionaire’s tax” surcharge is included), Massachusetts, New Jersey, New York, and the District of Columbia.

The table below shows how each state’s individual income tax is structured. Compare states with no income tax, flat income taxes, or graduated-rate income tax. If you want to review the Income Tax Structures by State, go to The Tax Foundation.