subject: 2010 State Income Tax Rates - Lower Your Tax Burden [print this page] 2010 State Income Tax Rates - Lower Your Tax Burden
Lower Your State Income Taxes
If you're looking to lower your state income taxes, then you may want to consider settling in a state with favorable rates. Individual income tax rates can range anywhere from nothing at all up to 11% in some states. The purpose of this article is to inform you as to where you will find the highest and lowest state tax rates so you can make an educated decision about where you want to live and where you may want to base a business. Just be sure you consult with an attorney and/or an accountant if you're considering starting a business in a different state than where you live.
State Tax Rates
Alabama (AL) 2-5%
Alaska (AK) no state income tax
Arizona (AZ) 2.59-4.54%
Arkansas (AR) 1-7%
California (CA) 1.25-9.55%
Colorado (CO) 4.63% flat rate
Connecticut (CT) 3-6.5%
Delaware (DE) 2.2-6.95%
Florida (FL) no state income tax
Georgia (GA) 1-6%
Hawaii (HI) 1.4-11%
Idaho (ID) 1.6-7.8%
Illinois (IL) 3% flat rate
Indiana (IN) 3.4% flat rate
Iowa (IA) 0.36-8.98%
Kansas (KS) 3.5-6.45%
Kentucky (KY) 2-6%
Louisiana (LA) 2-6%
Maine (ME) 2-8.5%
Maryland (MD) 2-6.25%
Massachusetts (MA) 5.3% flat rate
Michigan (MI) 4.35% flat rate
Minnesota (MN) 5.35-7.85%
Mississippi (MS) 3-5%
Missouri (MO) 1.5-6%
Montana (MT) 1-6.9%
Nebraska (NE) 2.56-6.84%
Nevada (NV) no state income tax
New Hampshire (NH) limited to dividends and interest income
New Jersey (NJ) 1.4-10.75%
New Mexico (NM) 1.7-4.9%
New York (NY) 4-8.97%
North Carolina (NC) 6-7.75%
North Dakota (ND) 1.84-4.86%
Ohio (OH) 0.618-6.24%
Oklahoma (OK) 0.5-5.5%
Oregon (OR) 5-11%
Pennsylvania (PA) 3.07% flat rate
Rhode Island (RI) 3.8-9.9%
South Carolina (SC) 0-7%
South Dakota (SD) no state income tax
Tennessee (TN) limited to dividends and interest income
Texas (TX) no state income tax
Utah (UT) 5% flat rate
Vermont (VT) 3.55-8.95%
Virginia (VA) 2-5.75%
Washington (WA) no state income tax
West Virginia (WV) 3-6.5%
Wisconsin (WI) 4.6-7.75%
Wyoming (WY) no state income tax
District of Columbia (DC) 4-8.5%
Lowest State Tax Rates
The clear winners here are Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. In these states you won't pay any income taxes on the state level at all! If you live in a high income tax state, then you'll want to be sure to find a good local accountant to help lessen the burden.
welcome to Insurances.net (https://www.insurances.net)
