What Are the Highest Income Tax Rates by State?

When you earn money in the United States, the federal government requires you to report it and, generally, to pay income taxes on it. Depending on where your live, your state may also collect taxes on your income. In fact, while there are seven states that don't charge personal income tax, the majority of them do ask for a cut of your earnings. 

Of those states, there's wide variation in the amount you may have to pay. Since this can profoundly impact how far your money goes, its helps to know how your home state stacks up. To figure that out, check out the highest income tax rates by state. 

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The highest income tax rates in each state

The table below shows the highest tax rates in each state in 2020 that could apply to ordinary income you earn. And remember: These income tax rates differ in some cases from what states charge for capital gains tax. 

Table source: Tax Foundation. N/A = no state income tax.

Note the seven states that don't charge income tax. And, of course, there's lots of variation from one state to the next -- but these top rates don't necessarily tell the whole story.

In 32 U.S. states plus Washington D.C., taxes are progressive, which means rates go up as your income does. In the remaining states that collect this revenue, everyone pays at the same flat rate. If you live in a place with rates that vary based on income, the highest bracket applies only to a portion of your earnings, if you're subject to it at all. In California, for example, only income over $1 million (for single filers) and $1,181,484 (for married joint filers) will be taxed at the highest rate in 2020.

To find out your rate based on your earnings, your best bet is to check with your state's department of revenue. Of course, even this may not be enough to tell you exactly how much you'll owe as your local government may want a piece of the action, too. For example, Philadelphia is one of many cities that levies an income tax.  

It's important to make sure you're fulfilling your obligations to the IRS, your state, and your local government. Your employer may withhold taxes from your paycheck, but you'll still generally need to file tax returns reporting your income. And it's ultimately your responsibility to pay the correct amount. Self-employed individuals may have to send in estimated payments quarterly to ensure they're keeping on top of all their obligations. 

When you file your tax returns, your accountant or the software you use can help identify all the different returns you need to submit based on where you live and work. But it's best to know your obligations before filing time, so check with your state and local governments ASAP to find out what's expected of you.