The top marginal income tax rate for Louisiana residents is 6 percent, according to a new study of state individual income tax rates by the Tax Foundation.
The state levies a graduated-rate tax on income earners. Top state income tax rates range from a high of 13.3 percent in California to 1 percent in Tennessee, according to a Tax Foundation study.
Income taxes accounted for 37 percent of state tax revenues in fiscal-year 2017, the analysis said. And among the 43 states that levy income taxes, 41 tax wages or salaries, while two – New Hampshire and Tennessee – tax only interest and dividend income.
Nine states have single-rate levies on individuals’ income, while 32 states and the District of Columbia have graduated-rate income taxes.
States with individual income taxes also vary in terms of the number of tax brackets and approaches to deductions and personal exemptions, the Tax Foundation report said.
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States’ Top Marginal Income Tax Rates in 2020
State | Top Marginal Individual Income Tax Rates | Type of Individual Income Tax System |
Alabama | 5.00% | Graduated rates |
Alaska | 0.00% | None |
Arizona | 4.50% | Graduated rates |
Arkansas | 6.60% | Graduated rates |
California | 13.30% | Graduated rates |
Colorado | 4.63% | Single rate |
Connecticut | 6.99% | Graduated rates |
Delaware | 6.60% | Graduated rates |
Florida | 0.00% | None |
Georgia | 5.75% | Graduated rates |
Hawaii | 11.00% | Graduated rates |
Idaho | 6.93% | Graduated rates |
Illinois | 4.95% | Single rate |
Indiana | 3.23% | Single rate |
Iowa | 8.53% | Graduated rates |
Kansas | 5.70% | Graduated rates |
Kentucky | 5.00% | Single rate |
Louisiana | 6.00% | Graduated rates |
Maine | 7.15% | Graduated rates |
Maryland | 5.75% | Graduated rates |
Massachusetts | 5.00% | Single rate |
Michigan | 4.25% | Single rate |
Minnesota | 9.85% | Graduated rates |
Mississippi | 5.00% | Graduated rates |
Missouri | 5.40% | Graduated rates |
Montana | 6.90% | Graduated rates |
Nebraska | 6.84% | Graduated rates |
Nevada | 0.00% | None |
New Hampshire | 5.00% | Single rate |
New Jersey | 10.75% | Graduated rates |
New Mexico | 4.90% | Graduated rates |
New York | 8.82% | Graduated rates |
North Carolina | 5.25% | Single rate |
North Dakota | 2.90% | Graduated rates |
Ohio | 4.80% | Graduated rates |
Oklahoma | 5.00% | Graduated rates |
Oregon | 9.90% | Graduated rates |
Pennsylvania | 3.07% | Single rate |
Rhode Island | 5.99% | Graduated rates |
South Carolina | 7.00% | Graduated rates |
South Dakota | 0.00% | None |
Tennessee | 1.00% | Single rate |
Texas | 0.00% | None |
Utah | 4.95% | Single rate |
Vermont | 8.75% | Graduated rates |
Virginia | 5.75% | Graduated rates |
Washington | 0.00% | None |
Washington, D.C. | 8.95% | Graduated rates |
West Virginia | 6.50% | Graduated rates |
Wisconsin | 7.65% | Graduated rates |
Wyoming | 0.00% | None |
Source: Tax Foundation
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