State income tax is one of the biggest variables in your take-home pay. Two people with the same salary can have very different paychecks depending on where they live. Here's a complete overview for 2025.
States With No Income Tax
Nine states have no state income tax on wages:
- Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
Note: New Hampshire taxes interest and dividend income (but not wages). Washington has no income tax but does tax capital gains above $250,000.
States With Flat Income Tax Rates
These states tax all income at a single rate:
| State | Flat Rate |
|---|---|
| Arizona | 2.5% |
| Colorado | 4.4% |
| Georgia | 5.49% |
| Idaho | 5.8% |
| Illinois | 4.95% |
| Indiana | 3.05% |
| Kentucky | 4.0% |
| Massachusetts | 5.0% |
| Michigan | 4.05% |
| Mississippi | 4.7% |
| North Carolina | 4.5% |
| Pennsylvania | 3.07% |
| Utah | 4.55% |
States With the Highest Top Rates
| State | Top Rate | Brackets |
|---|---|---|
| California | 13.3% | 10 |
| Hawaii | 11.0% | 12 |
| New Jersey | 10.75% | 7 |
| Oregon | 9.9% | 4 |
| Minnesota | 9.85% | 4 |
| New York | 10.9% | 9 |
| Vermont | 8.75% | 5 |
| Iowa | 8.53% | 4 |
High rate ≠ high tax bill. States with high top rates often only apply those rates at very high income levels. A $60,000 earner in New York faces a much more modest effective rate than 10.9%.
How Much Does State Tax Actually Cost You?
On a $75,000 salary, the difference between a no-tax state and a high-tax state can be significant:
| State | Est. Annual State Tax | Per Biweekly Check |
|---|---|---|
| Texas (0%) | $0 | $0 |
| Indiana (3.05%) | ~$1,800 | ~$69 |
| Colorado (4.4%) | ~$2,640 | ~$102 |
| New York | ~$4,500 | ~$173 |
| California | ~$5,200 | ~$200 |
Local Income Taxes
Some cities add their own income tax on top of state taxes. New York City, Philadelphia, Detroit, and Columbus are among the cities with local income taxes that appear on pay stubs.
See Your Actual Take-Home Pay
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