State Tax Brackets 2025: Complete Guide With Rates for All 50 States

State income tax rates and structures change constantly. The 2024-2025 legislative cycle alone produced flat-tax reforms in Iowa, Louisiana, Mississippi, North Carolina, and Georgia, with Alabama enacting a flat tax effective 2026. For remote workers and multi-state employers, keeping current is essential: a rate change of even half a percentage point can shift the math on a cross-border commute, and a structural change from progressive to flat can eliminate the benefit of deductions that previously mattered.

This article is a complete reference to 2025 state income tax rates for all 50 states plus the District of Columbia. We cover how state tax structures work, the flat-tax reform wave, the eleven flat-tax states, the nine no-tax states, the progressive bracket states with their top marginal rates, and a comprehensive 50-state table. We close with caveats and how to use the table.

How state income tax structures work

State income tax structures fall into three categories: flat, progressive, and none. A flat tax applies a single rate to all taxable income regardless of amount. A progressive tax applies increasing rates to successive brackets of income, similar to the federal system. A state with no income tax (the nine states) levies no broad-based individual income tax at all, though some have narrowly scoped taxes on investment income.

Flat-tax states typically pair the flat rate with a standard deduction or personal exemption that effectively shields low-income earners from tax. The result is a system that is simpler to administer but less progressive than a bracket structure. A flat 3% rate with a $14,600 standard deduction means a single filer earning $20,000 pays 3% on $5,400 ($162), while a single filer earning $200,000 pays 3% on $185,400 ($5,562). The effective rate rises with income even though the marginal rate is flat.

Progressive-bracket states have multiple rates that increase with income. California has nine brackets for 2025, ranging from 1% on the first $10,567 of taxable income to 13.3% on income over $1,000,000. New York has nine brackets, with the top 10.9% rate kicking in above $25 million for single filers. Progressive structures result in higher effective rates for high earners and lower effective rates for moderate earners, mirroring the federal system.

The 2024-2025 flat-tax reform wave

The 2024-2025 legislative cycle was one of the most active periods for state tax reform in decades, with multiple states enacting or accelerating flat-tax transitions. The wave reflects a political consensus in several states that progressive brackets create unnecessary complexity and that lower flat rates spur economic growth. The reforms vary in their specifics, but the pattern is clear.

Georgia reduced its flat rate from 5.49% to 5.39% for the 2025 tax year under House Bill 1021, which was enacted in 2024 and converted Georgia from a progressive structure to a flat tax. The legislation includes automatic triggers that may further reduce the rate to 5.19% and 4.99% in future years if revenue targets are met. Iowa moved to a flat 3.8% rate on January 1, 2025, under House File 2317, replacing a progressive structure with rates up to 5.7%.

Kentucky completed its move to a flat 4% rate for 2025, down from 4% in 2024 and 4.5% in 2023, under House Bill 8. Mississippi reduced its flat rate from 4.4% to 3% for 2025 under House Bill 1631, completing a multi-year phaseout that began in 2018 when the rate was 4.75%. North Carolina reduced its flat rate from 4.5% to 4.25% for 2025 under Senate Bill 382, with a further reduction to 3.99% scheduled for 2026 if revenue triggers are met.

Arkansas reduced its top marginal rate to 4.4% for 2025 under the Revenue Stabilization Act, with rate cuts across multiple brackets. Louisiana moved to a flat 3% rate on January 1, 2025, under House Bill 10, replacing a progressive structure with rates up to 4.25%. Alabama enacted Act 2025-334, which moves the state to a flat 3% rate effective January 1, 2026, with the current progressive structure (top rate 5%) applying for 2025.

The flat-tax states for 2025

Sixteen states use a flat income tax structure for the 2025 tax year. The list and rates are as follows, sourced from each state\'s revenue department or the Tax Foundation\'s 2025 state tax rate survey:

• Arizona — 2.5%: Flat rate since 2023, replacing a progressive structure with a top rate of 4.5%.
• Colorado — 4.40%: Flat rate temporarily reduced from 4.25% to 4.40% for 2025 (a slight increase reflecting temporary rate adjustments under Proposition 121).
• Georgia — 5.39%: Flat rate for 2025, down from 5.49% in 2024.
• Idaho — 5.695%: Flat rate for 2025-2026, reduced from 5.8% under House Bill 521.
• Illinois — 4.95%: Flat rate, constitutionally required under the Illinois Constitution (voters rejected a progressive tax in 2020).
• Indiana — 3.05%: Flat rate for 2025, down from 3.15% in 2024; further reductions are scheduled.
• Iowa — 3.8%: Flat rate effective January 1, 2025, replacing a progressive structure.
• Kentucky — 4.0%: Flat rate for 2025, down from 4.0% in 2024 and 4.5% in 2023.
• Louisiana — 3.0%: Flat rate effective January 1, 2025, replacing a progressive structure with a top rate of 4.25%.
• Massachusetts — 5.0%: Flat rate, with a 4% surtax on income over $1 million (effectively creating two brackets, but commonly classified as flat with a high-income surcharge).
• Michigan — 4.25%: Flat rate, constitutionally required.
• Mississippi — 3.0%: Flat rate for 2025, down from 4.4% in 2024.
• North Carolina — 4.25%: Flat rate for 2025, down from 4.5% in 2024; further reduction to 3.99% scheduled for 2026.
• Pennsylvania — 3.07%: Flat rate, among the lowest in the country.
• Utah — 4.65%: Flat rate for 2025, down from 4.85% in 2024.
• West Virginia — 4.82%: Flat rate for 2025, with further reductions scheduled under House Bill 2526.

The nine no-tax states

Nine states levy no broad-based individual income tax on wages in 2025: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire joined the list on January 1, 2025, when its interest and dividends tax was fully repealed. Washington has no wage tax but levies a 7% capital gains tax on long-term gains over $270,000. The other eight states have no individual income tax of any kind.

The no-tax states fund state government through a mix of sales tax, property tax, business taxes, and (in Alaska\'s case) oil royalties. Alaska and South Dakota also have no state corporate income tax. The absence of an individual income tax does not mean no taxes — Texas and New Hampshire have among the highest property taxes in the nation, and Tennessee has the highest combined state and local sales tax rate in the country.

For a deeper dive on the no-tax states, including the Washington capital gains tax, the New Hampshire repeal, and the residency audit risk for movers, see our dedicated no-tax states guide.

Progressive bracket states — top marginal rates

The remaining states use progressive bracket structures. The top marginal rates for 2025 are summarized below, sourced from each state\'s revenue department. These rates apply only to income above the threshold; lower brackets are taxed at lower rates.

• California — 13.3%: Top rate applies to taxable income over $1,000,000 for single filers and $1,249,697 for joint filers. Includes a 1% mental health services tax on income over $1 million.
• Hawaii — 11.0%: Top rate applies to taxable income over $200,000 for single filers and $400,000 for joint filers.
• New York — 10.9%: Top rate applies to taxable income over $25 million. New York City adds a resident surtax up to 3.876%, bringing the combined top rate to 14.776%.
• New Jersey — 10.75%: Top rate applies to income over $1 million.
• Oregon — 9.9%: Top rate applies to taxable income over $125,000 for single filers.
• District of Columbia — 9.75%: Top rate applies to taxable income over $1 million.
• Minnesota — 9.85%: Top rate applies to taxable income over $304,420 for single filers.
• Vermont — 8.75%: Top rate applies to taxable income over $213,150 for single filers.
• Wisconsin — 7.65%: Top rate applies to taxable income over $280,950 for single filers.
• Delaware — 6.6%: Top rate applies to taxable income over $60,000.
• Connecticut — 6.99%: Top rate applies to taxable income over $500,000 for single filers.
• Maine — 7.15%: Top rate applies to taxable income over $54,000 for single filers.
• Iowa (transitional): See flat-tax section; 3.8% flat rate for 2025.
• South Carolina — 6.4%: Top rate applies to taxable income over $17,070; top rate was reduced from 6.5% for 2025.
• Montana — 5.9%: Top rate applies to taxable income over $21,100 for single filers.
• Missouri — 4.8%: Top rate applies to taxable income over $8,499.
• Nebraska — 5.84%: Top rate applies to taxable income over $35,720 for single filers.
• New Mexico — 5.9%: Top rate applies to taxable income over $210,000 for single filers.
• Arkansas — 4.4%: Top rate applies to taxable income over $24,500; was 4.7% in 2024.
• Alabama — 5.0%: Top rate for 2025; moves to a flat 3% effective January 1, 2026.
• Ohio — 3.5%: Top rate applies to taxable income over $115,300; was 3.75% in 2024.
• Oklahoma — 4.75%: Top rate applies to taxable income over $7,200 for single filers.
• Rhode Island — 5.99%: Top rate applies to taxable income over $75,450 for single filers.
• Kansas — 5.58%: Top rate applies to taxable income over $30,000 for single filers; reduced from 5.7% for 2025.
• Virginia — 5.75%: Top rate applies to taxable income over $17,000 for single filers.
• North Dakota — 2.5%: Top rate applies to taxable income over $267,500 for single filers; one of the lowest top rates among progressive states.

Complete 50-state rate table

The table below summarizes the 2025 state income tax structure for all 50 states plus the District of Columbia. Rates are the top marginal rate for progressive states or the flat rate for flat-tax states. Standard deductions are for single filers unless noted. Local taxes are noted where significant.

How to use this table

The table is a starting point for understanding your state income tax exposure, not a substitute for a tax professional\'s analysis. To estimate your state income tax for 2025, take your federal adjusted gross income, subtract your state standard deduction (or itemized deductions if your state allows them and you exceed the standard), and apply the rate or bracket structure. Many states have their own deduction and exemption rules that differ from federal.

For multi-state situations, the table helps you compare rates across states. If you live in Virginia (top 5.75%) and work in Maryland (top 5.75% plus 3.2% local), reciprocity saves you the Maryland local tax on wages. If you live in Texas and work for a New York employer under the convenience rule, you face New York\'s 10.9% top rate with no offsetting Texas credit. Run your numbers through our multi-state withholding calculator to see the dollar impact.

For employers, the table helps you understand the cost of hiring in different states. A worker in California at the top bracket costs the worker 13.3% in state income tax; the same worker in Texas costs zero. While the employer does not pay state income tax on the worker\'s wages, the tax burden affects salary expectations and the overall competitiveness of compensation packages. Employers in low-tax states often face pressure to increase gross pay to compensate for the absence of state tax in higher-tax competitor markets.

Caveats

Three caveats apply to the rates in this table. First, local income taxes are not included. New York City, Yonkers, Philadelphia, Detroit, Wilmington, Kansas City, St. Louis, and most Maryland counties impose local income taxes that can add 1% to 4% to the effective rate. Indiana county taxes and Ohio school district taxes add another 0.25% to 3%. Always check local rules for your specific jurisdiction.

Second, rates change frequently. The 2024-2025 cycle saw six states adjust their flat rates, two states transition from progressive to flat, and one state (Alabama) enact a future flat-tax transition. Several states have automatic rate-reduction triggers tied to revenue targets that may further reduce rates in 2026 and beyond. Verify the current rate against the state revenue department\'s published guidance before relying on it.

Third, the standard deductions listed are for single filers and may differ for joint filers, head of household, or married filing separately. Some states use personal exemptions rather than standard deductions; others use a tax-free threshold below which no tax is owed. The interaction between deductions, exemptions, and brackets varies by state, and the effective tax rate is rarely the same as the headline rate. Consult the state revenue department\'s tax forms and instructions for the exact calculation.

What to do next

Use this table to estimate your state income tax exposure, then run your projected wages through our multi-state withholding calculator for a precise calculation. The calculator handles reciprocity, the convenience rule, credits for tax paid to other states, and the interaction between state withholding and federal withholding. It is the most accurate way to project your year-end position across multiple states.

For related reading, our no-tax states guide covers the nine states with no income tax in depth, including the 2025 New Hampshire change and the Washington capital gains tax. Our reciprocity agreements guide covers the 30 bilateral agreements that determine which state withholds when you commute across state lines.

For employers, our state payroll registration reference lists the forms, fees, and timelines for registering as an employer in each state. Pair it with this rate table to assess the total tax cost of hiring in different jurisdictions, including both employer-side payroll taxes and the employee-side income tax burden your workers will face.