Ranked: 15 US States with the Highest Income Taxes

Living in a good location is more than housing because where you live can help or hinder your ability to scale your finances. If you stay in a city with a high tax load, your income can be eaten away to fund state budgets. Having collected personal income tax data from the Internal Revenue Service, here are the US States with the highest income taxes.

15. South Carolina – 0% to 6.5%

As of 2023, South Carolina was the fifteenth-highest state with the most income tax in the US. It made the top 15 list after the tax rate went up from 6.40, ending the year with a top-end figure of 6.50% and a low-end of 0%.

14. West Virginia – 3% to 6.5%

Despite meager property and sales taxes, West Virginia still has a relatively high individual income tax, ranging from 3% to 6.50%. This state also charges a flat 6.50% duty on corporate earnings plus a percentage on local gross receipts.

13. Delaware – 2.20% to 6.60%

Delaware has pristine beaches and incredible outdoor scenery, contributing to its revenue generation. Still, the state charges a top-end income tax rate of 6.60% and a low-end income duty of 2.20%.

12. Connecticut – 3% to 6.99%

Connecticut is one of the original 13 states and one of the six New England states. Despite this pristine position and their ranking as a growing center of business, vacation, and tourism, residents still pay about 3% to 6.99% of their income for taxes.

11. Maine – 5.8% to 7.15%

Maine imposes a high top marginal income tax rate of 7.15% and a lower one of 5.80%, placing it among the states with the highest charges on earnings in the US. Although it provides a $300 dependent exemption in tax credit, top earners still remit a substantial part of their income to fund the state budget.

10. Wisconsin – 3.54% to 7.65%

Wisconsin has a graduated income tax system for individuals, meaning the rate you pay depends on your earnings. Residents pay between 3.54% and 7.65%, and businesses benefit from a flat 7.90%. In 2023, after the Business Tax Climate Index was indexed, Wisconsin ranked 24th in the nation.

9. Vermont – 3.35% to 8.75%

Vermont isn’t only known for its primarily forested natural landscape. It is also one of the leading states with the highest income taxes in the US, with personal income tax rates between 3.35% and 8.75%.

8. Massachusetts – 5% to 9%

Although the area is one of the smallest states, Massachusetts has a top-end and low-end personal income tax rate of 9% and 5%, respectively. According to data gathered, it is placed eighth among the states as residents or non-residents must pay tax if their income comes from a Massachusetts source.

7. Minnesota – 5.35% to 9.85%

Minnesota is another state with a high individual income tax rate, reaching between 5.35% and 9.85% in 2024; the state will also demand a 1% duty on residents’ net investment income. Its system ranks 45th overall on the 2023 State Business Tax Climate Index.

6. Oregon – 4.75% to 9.9%

Oregon has its Seven Wonders, including the famed Crater Lake, which generates revenue through tourism. While you’d expect lenient taxes, it decided to create more internal revenue through tax. At a rate of 4.75% to 9.9%, residents pay a percentile equivalent of $3,750 and $125,000 on income.

5. District of Columbia – 4% to 10.75%

Although the District of Columbia is neither a state nor part of any, we still list it among those with high incomes. Its progressive tax structure gets steep quickly, charging residents between 4% and 10.75% on their earnings, with the top-end rate reserved for taxable income over $1 million.

4. New Jersey – 1.4% to 10.75%

New Jersey has a solid economy because of its proximity to the metropolitan giants of New York City and Philadelphia. Still, the state has top-end and low-end tax rates of 10.75% and 1.40%, respectively, placing it fourth among the states with the highest income taxes in the US.

3. New York – 4% to 10.9%

The Big Apple’s income tax rate is between 4% and 10.90%, which doesn’t matter if you are a resident or a non-resident. As long as you are a citizen generating income from a New York source, you must pay taxes to the state.

2. Hawaii – 1.4% to 11%

Hawaii ranks second-highest in the US, with individual income tax rates between 1.40% and 11%. The state has a high rate because it has different marginal rates for various income levels. Higher earners are taxed more than lower earners, making the system more progressive.

1. California – 1% to 13.3%

California tops the list with a graduated tax rate ranging from 1% to 13.3%. Residents who earn an annual taxable income of more than $1 million from a source in the state are obliged to remit $133,000 annually.