The Tax Foundation is the nation’s leading independent tax policy research organization. Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and local levels.
The Tax Foundation is the nation’s
leading independent tax policy
research organization. Since 1937,
our research, analysis, and experts
have informed smarter tax policy
at the federal, state, and global
levels. We are a 501(c)(3) nonprofit
©2021 Tax Foundation
Creative Commons CC-BY-NC 4.0
Editor, Rachel Shuster
Designer, Dan Carvajal
1325 G Street, NW, Suite 950
Washington, DC 20005
State Individual Income Tax Rates
and Brackets for 2021
Individual income taxes are a major source of state government revenue,
accounting for 38 percent of state tax collections in fiscal year 2018, the
latest year of data available.
• Forty-two states levy individual income taxes. Forty-one tax wage and salary
income, while one state—New Hampshire—exclusively taxes dividend and
interest income. Eight states levy no individual income tax at all.
• Of those states taxing wages, nine have single-rate tax structures, with one
rate applying to all taxable income. Conversely, 32 states and the District of
Columbia levy graduated-rate income taxes, with the number of brackets
varying widely by state. Hawaii has 12 brackets, the most in the country.
• States’ approaches to income taxes vary in other details as well. Some states
double their single-bracket widths for married filers to avoid a “marriage
penalty.” Some states index tax brackets, exemptions, and deductions for
inflation; many others do not. Some states tie their standard deductions and
personal exemptions to the federal tax code, while others set their own or
offer none at all.
Senior Policy Analyst
TAX FOUNDATION | 2
Individual income taxes are a major source of state government revenue, accounting for 38 percent
of state tax collections.1 Their prominence in public policy considerations is further enhanced in that
individuals are actively responsible for filing their income taxes, in contrast to the ind