State Income Tax Calculator

As of 2025, nine states levy no broad-based individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire's narrow tax on interest and dividend income (the "I&D tax") is fully phased out starting tax year 2025 under HB 100 (2023). Residents of these states still pay federal income tax and typically face higher sales tax (TN, TX) or property tax (TX, NH, NJ-like burden) to compensate. The IRS maintains a directory of state tax agencies for state-specific filing details.

California has the highest top marginal state income tax rate at 13.3% (12.3% base + 1% mental health surcharge on income over $1M). Other high-tax states: Hawaii (11% top), New York (10.9% top + NYC 3.876%), New Jersey (10.75% on income above $1M), Oregon (9.9% top), and Minnesota (9.85% top). District of Columbia tops at 10.75% above $1M. Top rates apply only to income above filing-status thresholds — California's 13.3% applies above $1M single / $2M MFJ.

Generally, you owe state income tax to the state where you physically perform work, regardless of where the employer is located. Six states apply a "convenience of the employer" rule (NY, CT, DE, NE, NJ for residents only, and PA): if you work remotely for an NY employer for your own convenience (not the employer's necessity), NY treats your wages as NY-sourced. The 4 reciprocity-pair states (PA-NJ, MD-VA-DC-PA-WV, MI-IN-IL-KY-MN-OH-WI) let cross-border commuters file in their resident state only. Remote workers in non-reciprocity states often face dual-state filing with credit-for-tax-paid mechanics to avoid double taxation.

Nine states use a single flat rate as of 2025: Colorado (4.40%), Illinois (4.95%), Indiana (3.0%), Kentucky (4.0%), Massachusetts (5.0% plus 4% surtax above $1M), Michigan (4.25%), North Carolina (4.50%), Pennsylvania (3.07%), Utah (4.55%). All others with income tax use progressive bracket structures (multiple rates). Iowa, Mississippi, Georgia, and Arizona have all completed or scheduled transitions to flat tax in recent years; Kansas and Oklahoma have similar proposals pending.

OBBBA §70120 raised the federal SALT itemized deduction cap from $10,000 (TCJA 2018-2024) to $40,000 ($20,000 MFS) for 2025, rising to $40,400 in 2026. The cap covers state income tax + local income tax + property tax, COMBINED. Phaseout begins at $500,000 MAGI, reducing the cap by 30¢ per dollar above the threshold down to a $10,000 floor. State income tax paid above the cap is NOT deductible federally. 36+ states have enacted Pass-Through Entity Tax (PTET) workarounds letting partnership/S-corp owners deduct state tax at the entity level — bypassing the cap.

Reciprocity agreements let residents of one state who work in another file ONLY in their resident state, avoiding double filing. Common pairs include PA-NJ, MD-VA, IL-IA/KY/MI/WI, OH-MI/KY/IN/WV/PA, IN-KY/MI/OH/PA/WI. The employer typically withholds for the employee's resident state only after the employee files a non-resident withholding exemption form (e.g., NJ-165 for PA residents working in NJ). Not all neighboring state pairs have reciprocity — NY and CT have none, requiring full credit-for-tax-paid mechanics.

If you have income from a non-resident state (no reciprocity), your resident state typically allows a tax CREDIT (not a deduction) for income tax paid to the source state — capped at the resident state's tax on that same income. Example: CA resident with $50k of NY-source income pays NY 6.85% = $3,425, then claims that credit against CA's tax on the same $50k (~8% = $4,000). Net: CA collects $4,000 − $3,425 = $575 on that income. Reduces but doesn't eliminate double-state burden in high-source-state scenarios.

Yes. Moving from one state to another mid-year creates a part-year resident filing in both states. Each state taxes income earned WHILE you were a resident. Federal AGI is allocated between the two states by date (income from a salary is split by days; investment income usually by residency on the receipt date). Major moves require: change of driver's license, voter registration, principal residence — to establish the residency-change date. Some states (especially CA, NY) audit aggressively when high earners claim mid-year residency change to a no-tax state.

States generally mirror federal estimated tax payment due dates (April 15, June 15, September 15, January 15) for self-employed and high investment income filers. State safe-harbor rules vary — most require either 100% of prior-year liability OR 90% of current-year tax (CA, NY) but some require 110% for high earners. Underpayment penalties accrue at state-specified rates (often equal to the prime rate). Combining federal Form 1040-ES with state Form xxx-ES is the typical workflow.

Highly variable. Some states (IL, MS, PA) FULLY exempt qualified retirement income (pensions, 401(k)/IRA withdrawals, Social Security). Others (CA, NY) tax retirement income at ordinary rates. Most states exempt Social Security entirely — only Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah, and West Virginia tax SS at some level (most with income-based exemptions). State pension-vs-relocation analysis is a frequent retirement planning topic.

Yes — as part of the itemized SALT deduction under IRC §164(a)(3), but only as itemized (not above-the-line) and only within the OBBBA SALT cap ($40,000 2025; phasing out above $500,000 MAGI to $10,000 floor). Most filers now take the federal standard deduction ($15,750 single / $31,500 MFJ 2025) instead of itemizing — making state tax effectively non-deductible at the federal level. Itemizing is more common in high-tax states (CA, NY, NJ, OR) where combined SALT + mortgage interest + charity easily exceeds the standard deduction.

Several US cities levy their own income tax IN ADDITION to state tax: New York City (3.078-3.876% resident), Yonkers (1.6125% non-resident, 16.75% resident surtax on state tax), Philadelphia (3.75% resident wages), Detroit (2.4% resident), Cleveland (2.5%), Cincinnati (1.8%), Pittsburgh (3.0%), Baltimore (3.2%), Kansas City (1.0% earnings tax), and most Ohio municipalities. NYC tax stacks on top of NY state tax (final top combined: ~14.776% for NYC residents at top brackets) — among the highest sub-national tax burdens in the developed world.

Most states tax interest and dividends at the regular state income tax rate. New Hampshire historically taxed only I&D at 5% (fully phased out in 2025). Tennessee's Hall Income Tax on interest/dividends was repealed 2021. Washington added a 7% capital gains tax above $250k in 2022 (upheld 2023). Massachusetts added a 4% Millionaire's Tax surtax on income above $1M starting 2023. State treatment of qualified dividends usually mirrors federal (taxed as ordinary income at the state level — no preferential rate).