2025 State Tax Guide: Save Money In All 50 States

What is a state income tax?

A state income tax is a tax on income earned in that state. It is similar to a federal income tax, but state income tax generally funds state budgets rather than the federal government. Some states have a progressive tax, while others have a flat tax. Nine states do not levy a state income tax at all.

How state income tax rates work?

If you live and work in the same state, you probably need to file only one state return each year, if applicable. But if you moved to another state during the year, lived in one state but worked in another, or have, say, income-producing rental properties in multiple states, you might need to file more than one state return.

And because the price of many tax software packages includes preparation and filing for only one state, filing multiple state income tax returns can mean paying extra.

State Income Tax Returns Due

State income tax return deadlines usually mirror the federal deadline in mid-April, but exceptions exist. Residents of Virginia, for example, generally have until May 1 to file their state returns. Check with your state's tax and revenue authority for further information.

The deadline to file a federal income tax return is Tuesday, April 15, 2025. Americans living abroad have until June 16, 2025, to file. The date and time in your time zone when your electronic return is transmitted determines whether it is on time .

Type 1: States with No Income Tax

Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — do not have an income tax. One caveat to know: Washington has a 7% tax on long-term capital gains over $270,000 (2024).

The idea of not having to pay state income taxes might sound appealing, but keep in mind that property taxes, sales taxes or other taxes and fees could be higher in those states.

Type 2: States with Flat Income Tax Rates

Several states try to keep things simple by applying the same tax rate to most income. Of course, what counts as "income" depends on the state. And some states apply their tax rates to taxable income, while others use adjusted gross income.

Type 3: States with Progressive Tax Structures

Most states and the District of Columbia tax income similarly to how the federal government does: They tax higher levels of income at higher state income tax rates.

However, state income tax rates tend to be lower than federal tax rates. Many range between 1% and 10%, and some states don't tax anything on the first few thousand dollars of income.

High-tax states top out around 13%, and that's often on top of property taxes, sales taxes, utility taxes, fuel taxes and whatever the taxpayer must send to the federal government.

Highest Taxed States

California, Hawaii, New York, New Jersey and Washington D.C. have some of the highest marginal state income tax rates, with each having a top tax rate above 10%. However, it's important to keep in mind that not everyone pays the highest tax rate and that state income taxes don't make up the full picture when looking at the overall tax burden.

And, as is the case for federal returns, the amount you'll pay to your state is also a function of your filing status, whether you have dependents, and whether you qualify for tax deductions and credits.

2024 State Tax Rates

State income tax rates for 2024 (filed in 2025) vary significantly across the United States, ranging from 0% to 13.3%. While nine states have no income tax, others like California and New York impose progressive rates reaching double digits for high earners.

Tax brackets typically differ for single and joint filers, with many states doubling the income thresholds for married couples filing jointly. States use either flat rates (like Arizona's 2.5%) or progressive systems with multiple brackets based on income levels.

2025 State Tax Rates

For income earned in 2025 and reported in 2026, state income tax rates continue to show significant variation across the United States. While nine states maintain their no-income-tax status, others employ either flat rates or progressive systems ranging from 0% to 13.3%.

The tax structure varies by filing status, with many states offering different brackets for single and joint filers. Notable changes include Arkansas's simplified 3.9% rate above $4,500 and Iowa's new flat rate of 3.8%. You can explore your local IRS Offices to get the detailed rules of state income tax.