State Income Tax Burden by Income Level: A 50-State Comparison for 2024

We calculate effective state income tax rates at five income levels ($30K, $60K, $100K, $200K, $500K) across all 41 states with an income tax, revealing how progressivity varies from California's steep gradient to flat-tax states like Illinois and Pennsylvania.

Research period:

Research Question

How does the effective state income tax rate vary across income levels in each of the 41 states that levy a personal income tax, and which states impose the highest and lowest burden at each income tier?

Methodology

We obtained 2024 state income tax bracket structures and standard deduction amounts from each state's revenue department website and the Federation of Tax Administrators. For each of the five income levels ($30,000, $60,000, $100,000, $200,000, $500,000), we computed state income tax liability using the Single filing status with the standard deduction, then divided by gross income to produce the effective rate. Nine states (AK, FL, NV, NH, SD, TN, TX, WA, WY) levy no broad-based personal income tax and are excluded. We did not account for local income taxes, credits, or alternative minimum taxes at the state level.

Findings

Progressivity ranges from flat to steep across 41 states

Among the 41 states that levy a personal income tax, effective rates at $30,000 of income range from 0.2% (North Dakota) to 3.9% (Oregon). At $500,000, the spread widens: from 3.0% (Indiana) to 12.3% (California). California's progressive structure produces the largest gradient: 1.1% at $30K versus 12.3% at $500K — an 11.2 percentage-point spread. By contrast, flat-tax states show near-constant effective rates across all income levels. Illinois charges 4.95% regardless of income, and Pennsylvania charges 3.07% across the board.

California, Hawaii, and New Jersey stand out as the three most progressive state income tax systems. California's top rate of 13.3% kicks in above $1 million for single filers, but the bracket structure already pushes the effective rate to 9.3% at $200K and 12.3% at $500K. Hawaii's top rate of 11% applies to income above $200,000, making it the second-steepest climb. New Jersey reaches 10.75% on income over $500,000, with the effective rate at that level hitting 8.4%.

At the other end, ten states charge flat rates that change minimally with income. Indiana (3.05%), Michigan (4.25%), and Pennsylvania (3.07%) all apply a single rate to taxable income after their standard deductions. Colorado's 4.4% flat rate produces effective rates between 3.0% and 4.4% depending on how much of income falls above the deduction. These flat structures mean a $30K earner pays a similar share of income as a $500K earner — a fundamentally different design choice than progressive brackets.

$100K income: the middle-tier landscape

At $100,000 of income — close to the US median household income — state income tax burdens cluster in the 3% to 6% range for most states. Oregon's effective rate of 7.8% is the highest, driven by a 9.9% top rate with a comparatively small standard deduction of $2,605. New York's state-level rate of 5.5% at this income (before the New York City add-on) ranks fifth after Oregon, California (6.8%), Hawaii (6.4%), and New Jersey (5.7%).

Southern states generally impose lower income taxes at this level. Georgia's effective rate is 4.2%, North Carolina's flat 4.5% produces an effective 4.0%, and Alabama comes in at 3.4%. Tennessee and Texas, with no income tax, sit at 0% — though property and sales taxes in those states may offset the savings. See our state tax comparison page for the combined federal-plus-state picture.

The median effective state income tax rate at $100,000 across all 41 taxing states is approximately 4.3%. Half the states fall between 3.2% and 5.2%, with outliers at both ends. Our tax calculator lets you plug in your own income and state to get a personalized estimate.

How much does the gradient matter in practice?

For a single filer earning $60,000, the difference between the lowest-taxing state (North Dakota at 0.5%) and the highest (Oregon at 5.2%) is $2,820 per year. At $200,000, the gap between Indiana (4.95% flat, effective 4.5%) and California (effective 9.3%) widens to $9,600. These numbers represent state income tax only — total state and local tax burdens look different when sales, property, and excise taxes are included.

The Tax Foundation's 2024 State Business Tax Climate Index ranks individual income tax structures from most competitive to least. States without an income tax (Texas, Florida, Washington) typically score highest on the income-tax component, while California and New York score lowest. However, the overall index weights corporate tax, sales tax, property tax, and unemployment insurance alongside individual income tax, so a state's rank on one component does not determine its overall position.

For taxpayers considering relocation, the effective rate at your specific income level matters more than the top marginal rate. California's 13.3% top rate sounds dramatic, but a $60,000 earner faces an effective state rate of just 2.3% — below the flat rates in Illinois (4.95%) and Iowa (5.7%). The gradient advantage only flips for higher earners. Our bracket-by-bracket planning guide walks through these tradeoffs in detail.

Implementation notes for analysts

Researchers comparing state tax burdens should weight effective rates by the income distribution of actual filers in each state. Using a single income level obscures the fact that high-cost states like California and New York have more filers in upper brackets, so the aggregate state tax revenue per capita is higher than a median-income effective rate suggests. Standard deductions vary from $2,605 (Oregon) to $13,850 (married filing jointly in states that conform to federal amounts), making comparisons across filing statuses non-trivial. Some states (Alabama, Louisiana) allow federal tax deduction as an itemized option, which creates a feedback loop between federal and state liability. States with "throwback" rules for apportionment (Arkansas, Mississippi) impose additional complexity for multi-state earners that our single-state model does not capture.

Context and methodological notes

State income tax structures reflect political choices about progressivity, revenue needs, and economic competitiveness. Nine states fund government services without a broad-based personal income tax, relying instead on sales taxes (Texas, Florida), resource extraction (Alaska, Wyoming), or business taxes (Washington, Nevada). Among the 41 states with income taxes, bracket structures range from genuinely progressive (California with 9 brackets) to flat-rate (Illinois with one rate for all taxable income). Several states conform to the federal Internal Revenue Code for calculation convenience, meaning changes to federal brackets or deductions automatically affect state revenue. The SALT deduction cap of $10,000, introduced by the Tax Cuts and Jobs Act of 2017 and currently extended through 2025 under legislative action, limits the federal deductibility of these state taxes and changes the effective after-federal cost of state income taxes for itemizers in high-tax states.

For the underlying calculations and assumption set, see our methodology page.

What this analysis cannot tell us

This analysis uses Single filing status only; married-joint and head-of-household filers will see different effective rates due to different bracket thresholds and standard deductions. State-level credits (earned income, child, senior) are not included, which overstates the burden for lower-income filers who qualify. Local income taxes (e.g., New York City, Philadelphia, various Ohio municipalities) are excluded, understating the actual burden in those jurisdictions. State standard deductions vary widely and some states use personal exemptions instead; we used whichever the state provides as its default. The $500,000 tier may exceed some states' bracket structures, but all states with an income tax have a top marginal rate that applies to income above their highest threshold.

Related data

Sources