Page 96 - BizVoice May/June 2013

96 BizVoice/Indiana Chamber – May/June 2013
AL
2.0-5.0
AZ
2.59-4.54
CA
1.0-13.3
CO
4.63
FL
None
GA
1.0-6.0
HI
1.4-11.0
ID
1.6-7.4
IL
5.0
IN*
3.4
IA
0.36-8.98
KS
3.0-4.9
KY
2.0-6.0
LA
2.0-6.0
MI
4.25
MN
5.35-7.85
MT
1.0-6.9
NE
2.46-6.84
NV
None
NM
1.7-4.9
NY
4.0-8.82
NC
6.0-7.75
ND
1.51-3.99
OH
0.587-
5.925
OK
0.5-5.25
OR
5.0-9.9
PA
3.07
SC
3.0-7.0
SD
None
TN
6.0
TX
None
UT
5.0 VA
2.0-5.75
WA
None
WV
3.0-6.5
WI
4.6-7.75
WY
None
MO
1.5-6.0
MS
3.0-5.0
AR
1.0-7.0
AK
None
CT
MD
DE
RI
MA
NJ
VT
NH
ME
Comparing tax rates between states is not always an easy task,
but the Tax Foundation does as good a job as anyone. Some
facts to consider when the topic is income taxes:
• There is no income tax in seven states: Alaska, Florida,
Nevada, South Dakota, Texas, Washington and Wyoming
• 34 states have graduated rates
• Nine states have flat tax rates: Indiana, Colorado, Illinois,
Massachusetts, Michigan, New Hampshire, Pennsylvania,
Tennessee and Utah
• 14 states, including Indiana, have local income taxes. The
rates vary from .01% in Oregon on the low end to a high of
1.57% in Maryland
Graduated rates can be misleading. Income levels are very
small for those covered by the lowest rates. For a person
making $50,000, for example, the rates are as follows in
selected states: California (9.3%), Oregon (9%), Hawaii
(8.25%), Iowa (7.92%), Idaho (7.4%) and Minnesota (7.05%).
The Tax Foundation notes that some of the variables in play in
different states include tax applying to interest and dividend
income only, additional special tax tables for low-income
payers, bracket levels adjusted for inflation each year and
allowing some or all of federal income tax paid to be deducted
from state taxable income.
*Indiana rate of 3.4% prior to any potential reduction in the 2013 General Assembly session
Source: Tax Foundation
Found elsewhere
State Income Tax Rates
Connecticut (CT): 3.0-6.7
Delaware (DE): 2.2-6.75
Maine (ME): 6.5-7.95
Maryland (MD): 2.0-5.75
Massachusetts (MA): 5.25
New Hampshire (NH): 5.0
New Jersey (NJ):1.4-8.97
Rhode Island (RI): 3.75-5.99
Vermont (VT): 3.55-8.95
n No income tax
n Flat rates