State Income Tax Rates and Brackets, 2022

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Key Findings

  • Individual income taxes are a major source of state government revenue, accounting for 36 percent of state tax collections in fiscal year 2020, the latest year for which data are 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.

Individual income taxes are a major source of state government revenue, accounting for 36 percent of state tax collections. Their prominence in public policy considerations is further enhanced in that individuals are actively responsible for filing their income taxes, in contrast to the indirect payment of sales and excise taxes.

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. Kansas, for example, is one of several states imposing a three-bracket income tax system. At the other end of the spectrum, Hawaii has 12 brackets. Top marginal rates range from North Dakota’s 2.9 percent to California’s 13.3 percent.

In some states, a large number of brackets are clustered within a narrow income band. For example, Georgia’s taxpayers reach the state’s sixth and highest bracket at $7,000 in taxable income. In other states, the top rate kicks in at a much higher level of marginal income. For example, the top rate kicks in at $1 million or more in California (when the “millionaire’s tax” surcharge is included), as well as in New Jersey, New York, and the District of Columbia. In New York, an additional top rate for income exceeding $25 million was enacted during the 2021 legislative session.

Table 1 shows how each state’s individual income tax is structured.

2022 State Individual Income Tax Structures
States with No Income Tax States with a Flat Income Tax States with a Graduated-rate Income Tax
Alaska Colorado Alabama
Florida Illinois Arizona
Nevada Indiana Arkansas
South Dakota Kentucky California
Tennessee Massachusetts Connecticut
Texas Michigan Delaware
Washington New Hampshire* Georgia
Wyoming North Carolina Hawaii
  Pennsylvania Idaho
Utah Iowa
  Kansas
Louisiana
Maine
Maryland
Minnesota
Mississippi
Missouri
Montana
Nebraska
New Jersey
New Mexico
New York
North Dakota
Ohio
Oklahoma
Oregon
Rhode Island
South Carolina
Vermont
Virginia
West Virginia 
Wisconsin 
District of Columbia

Note: *Applies to interest and dividends income only.

Sources: Tax Foundation; state tax statutes, forms, and instructions; Bloomberg BNA.

States’ approaches to income taxes vary in other details as well. Some states double their single filer bracket widths for married filers to avoid imposing a “marriage penalty.” Some states index tax brackets, exemptions, and deductions for inflation, while many others do not.[2] Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all.

The federal Tax Cuts and Jobs Act of 2017 (TCJA) increased the standard deduction (set at $12,950 for single filers and $25,900 for joint filers in 2022) while suspending the personal exemption by reducing it to $0 through 2025. Because many states use the federal tax code as the starting point for their own standard deduction and personal exemption calculations, some states that previously coupled to these provisions in the federal tax code have updated their conformity statutes in recent years to either adopt federal changes, retain their previous deduction and exemption amounts, or retain their own separate system but increase the state-provided deduction or exemption amounts.

In the following tables we have compiled the most up-to-date data available on state individual income tax rates, brackets, standard deductions, and personal exemptions for both single and joint filers. After the tables, we document notable individual income tax changes implemented in 2022.

2022 state income tax rates and brackets 2022 state individual income tax rates and brackets See income taxes by state flat income taxes

2022 State Income Tax Rates and Brackets
State Individual Income Tax Rates and Brackets, as of January 1, 2022
  Single Filer Married Filing Jointly Standard Deduction Personal Exemption
State Rates   Brackets Rates   Brackets Single Couple Single Couple Dependent
Alabama 2.00% > $0 2.00% > $0 $2,500 $7,500 $1,500 $3,000 $1,000
(a, b, c) 4.00% > $500 4.00% > $1,000          
  5.00% > $3,000 5.00% > $6,000          
Alaska none none n.a. n.a. n.a. n.a. n.a.
Arizona 2.59% > $0 2.59% > $0 $12,950 $25,900 n.a. n.a. $100 credit
(d, f, g, w, pp) 3.34% > $27,808 3.34% > $55,615          
  4.17% > $55,615 4.17% > $111,229          
  4.50% > $166,843 4.50% > $333,684          
Arkansas 2.00% > $0 2.00% > $0 $2,200 $4,400 $29 credit $58 credit $29 credit
(d, h, i, o, oo) 4.00% > $4,300 4.00% > $4,300          
  5.50% > $8,500 5.50% > $8,500          
California 1.00% > $0 1.00% > $0 $4,803 $9,606 $129 credit $258 credit $400 credit
(a, i, k, l, m, n, o, rr) 2.00% > $9,325 2.00% > $18,650          
  4.00% > $22,107 4.00% > $44,214          
  6.00% > $34,892 6.00% > $69,784          
  8.00% > $48,435 8.00% > $96,870          
  9.30% > $61,214 9.30% > $122,428          
  10.30% > $312,686 10.30% > $625,372          
  11.30% > $375,221 11.30% > $750,442          
  12.30% > $625,369 12.30% > $1,000,000          
  13.30% > $1,000,000 13.30% > $1,250,738          
Colorado (a, p) 4.55% > $0 4.55% > $0 $12,950 $25,900 n.a. n.a. n.a.
Connecticut 3.00% > $0 3.00% > $0 n.a. n.a. $15,000 $24,000 $0
(j, q, r, s) 5.00% > $10,000 5.00% > $20,000          
  5.50% > $50,000 5.50% > $100,000          
  6.00% > $100,000 6.00% > $200,000          
  6.50% > $200,000 6.50% > $400,000          
  6.90% > $250,000 6.90% > $500,000          
  6.99% > $500,000 6.99% > $1,000,000          
Delaware 2.20% > $2,000 2.20% > $2,000 $3,250 $6,500 $110 credit $220 credit $110 credit
(a, i, n, t) 3.90% > $5,000 3.90% > $5,000          
  4.80% > $10,000 4.80% > $10,000          
  5.20% > $20,000 5.20% > $20,000          
  5.55% > $25,000 5.55% > $25,000          
  6.60% > $60,000 6.60% > $60,000          
Florida none none n.a. n.a. n.a. n.a. n.a.
Georgia 1.00% > $0 1.00% > $0 $4,600 $6,000 $2,700 $7,400 $3,000
 (u) 2.00% > $750 2.00% > $1,000 $5,400 $7,100      
  3.00% > $2,250 3.00% > $3,000          
  4.00% > $3,750 4.00% > $5,000          
  5.00% > $5,250 5.00% > $7,000          
  5.75% > $7,000 5.75% > $10,000          
Hawaii 1.40% > $0 1.40% > $0 $2,200 $4,400 $1,144 $2,288 $1,144
(n, v) 3.20% > $2,400 3.20% > $4,800          
  5.50% > $4,800 5.50% > $9,600          
  6.40% > $9,600 6.40% > $19,200          
  6.80% > $14,400 6.80% > $28,800          
  7.20% > $19,200 7.20% > $38,400          
  7.60% > $24,000 7.60% > $48,000          
  7.90% > $36,000 7.90% > $72,000          
  8.25% > $48,000 8.25% > $96,000          
  9.00% > $150,000 9.00% > $300,000          
  10.00% > $175,000 10.00% > $350,000          
  11.00% > $200,000 11.00% > $400,000          
Idaho 1.000% > $0 1.000% > $0 $12,950 $25,900 n.a. n.a. n.a.
(k, n, w) 3.000% > $1,588 3.000% > $3,176          
  4.500% > $4,763 4.500% > $9,526          
  6.000% > $7,939 6.000% > $15,878          
Illinois (n, o, x) 4.95% > $0 4.95% > $0 n.a. n.a. $2,375 $4,750 $2,375
Indiana (a, n, y) 3.23% > $0 3.23% > $0 n.a. n.a. $1,000 $2,000 $1,000
Iowa 0.33% > $0 0.33% > $0 $2,210 $5,450 $40 credit $80 credit $40 credit
(a, b, e, i, dd) 0.67% > $1,743 0.67% > $1,743          
  2.25% > $3,486 2.25% > $3,486          
  4.14% > $6,972 4.14% > $6,972          
  5.63% > $15,687 5.63% > $15,687          
  5.96% > $26,145 5.96% > $26,145          
  6.25% > $34,860 6.25% > $34,860          
  7.44% > $52,290 7.44% > $52,290          
  8.53% > $78,435 8.53% > $78,435          
Kansas 3.10% > $0 3.10% > $0 $3,500 $8,000 $2,250 $4,500 $2,250
(a, n) 5.25% > $15,000 5.25% > $30,000          
  5.70% > $30,000 5.70% > $60,000          
Kentucky 5.00% > $0 5.00% > $0 $2,770 $5,540 n.a. n.a. n.a.
(a, e)                      
Louisiana 1.85% > $0 1.85% > $0 n.a. n.a. $4,500 $9,000 $1,000
(b, z) 3.50% > $12,500 3.50% > $25,000          
Maine 5.80% > $0 5.80% > $0 $12,950 $25,900 $4,450 $8,900 $300 credit
(w, aa, dd) 6.75% > $23,000 6.75% > $46,000          
  7.15% > $54,450 7.15% > $108,900          
Maryland 2.00% > $0 2.00% > $0 $2,350 $4,700 $3,200 $6,400 $3,200
(a, n, o, bb, cc) 3.00% > $1,000 3.00% > $1,000          
  4.00% > $2,000 4.00% > $2,000          
  4.75% > $3,000 4.75% > $3,000          
  5.00% > $100,000 5.00% > $150,000          
  5.25% > $125,000 5.25% > $175,000          
  5.50% > $150,000 5.50% > $225,000          
  5.75% > $250,000 5.75% > $300,000          
Massachusetts 5.00% > $0 5.00% > $0 n.a. n.a. $4,400 $8,800 $1,000
Michigan (a, n) 4.25% > $0 4.25% > $0 n.a. n.a. $5,000 $10,000 $5,000
Minnesota 5.35% > $0 5.35% > $0 $12,900 $25,800 n.a. n.a. $4,450
(e, dd, ee) 6.80% > $28,080 6.80% > $41,050          
  7.85% > $92,230 7.85% > $163,060          
  9.85% > $171,220 9.85% > $284,810          
Mississippi 4.00% > $5,000 4.00% > $5,000 $2,300 $4,600 $6,000 $12,000 $1,500
  5.00% > $10,000 5.00% > $10,000          
Missouri 1.50% > $108 1.50% > $108 $12,950 $25,900 n.a n.a n.a
(a, b, k, n, w) 2.00% > $1,088 2.00% > $1,088          
  2.50% > $2,176 2.50% > $2,176          
  3.00% > $3,264 3.00% > $3,264          
  3.50% > $4,352 3.50% > $4,352          
  4.00% > $5,440 4.00% > $5,440          
  4.50% > $6,528 4.50% > $6,528          
  5.00% > $7,616 5.00% > $7,616          
  5.40% > $8,704 5.40% > $8,704          
Montana 1.00% > $0 1.00% > $0 $4,830 $9,660 $2,580 $5,160 $2,580
(b, d, o, ff) 2.00% > $3,100 2.00% > $3,100          
  3.00% > $5,500 3.00% > $5,500          
  4.00% > $8,400 4.00% > $8,400          
  5.00% > $11,400 5.00% > $11,400          
  6.00% > $14,600 6.00% > $14,600          
  6.75% > $18,800 6.75% > $18,800          
Nebraska 2.46% > $0 2.46% > $0 $7,350 $14,700 $146 credit $292 credit $146 credit
(e, i, n, dd) 3.51% > $3,440 3.51% > $6,860          
  5.01% > $20,590 5.01% > $41,190          
  6.84% > $33,180 6.84% > $66,360          
Nevada none none n.a. n.a. n.a. n.a. n.a.
New Hampshire (gg) 5% on interest and dividends only 5% on interest and dividends only n.a n.a $2,400 $4,800 n.a.
New Jersey 1.400% > $0 1.400% > $0 n.a. n.a. $1,000 $2,000 $1,500
(a) 1.750% > $20,000 1.750% > $20,000          
  3.500% > $35,000 2.450% > $50,000          
  5.525% > $40,000 3.500% > $70,000          
  6.370% > $75,000 5.525% > $80,000          
  8.970% > $500,000 6.370% > $150,000          
  10.750% > $1,000,000 8.970% > $500,000          
        10.750% > $1,000,000          
New Mexico 1.70% > $0 1.70% > $0 $12,950 $25,900 n.a. n.a. $4,000
(n, nn) 3.20% > $5,500 3.20% > $8,000          
  4.70% > $11,000 4.70% > $16,000          
  4.90% > $16,000 4.90% > $24,000          
  5.90% > $210,000 5.90% > $315,000          
New York 4.00% > $0 4.00% > $0 $8,000 $16,050 n.a. n.a. $1,000
(a, j) 4.50% > $8,500 4.50% > $17,150          
  5.25% > $11,700 5.25% > $23,600          
  5.85% > $13,900 5.85% > $27,900          
  6.25% > $80,650 6.25% > $161,550          
  6.85% > $215,400 6.85% > $323,200          
  9.65% > $1,077,550 9.65% > $2,155,350          
  10.30% > $5,000,000 10.30% > $5,000,000          
  10.90% > $25,000,000 10.90% > $25,000,000          
North Carolina 4.99% > $0 4.99% > $0 $12,750 $25,500 n.a. n.a. n.a.
North Dakota 1.10% > $0 1.10% > $0 $12,950 $25,900 n.a. n.a. n.a.
(k, p, w) 2.04% > $40,525 2.04% > $67,700          
  2.27% > $98,100 2.27% > $163,550          
  2.64% > $204,675 2.64% > $249,150          
  2.90% > $445,000 2.90% > $445,000          
Ohio 2.765% > $25,000 2.765% > $25,000 n.a. n.a. $2,400 $4,800 $2,400
(a, d, o, hh) 3.226% > $44,250 3.226% > $44,250          
  3.688% > $88,450 3.688% > $88,450          
  3.990% > $110,650 3.990% > $110,650          
Oklahoma 0.25% > $0 0.25% > $0 $6,350 $12,700 $1,000 $2,000 $1,000
(n) 0.75% > $1,000 0.75% > $2,000          
  1.75% > $2,500 1.75% > $5,000          
  2.75% > $3,750 2.75% > $7,500          
  3.75% > $4,900 3.75% > $9,800          
  4.75% > $7,200 4.75% > $12,200          
Oregon 4.75% > $0 4.75% > $0 $2,420 $4,840 $219 credit $436 credit $219 credit
(a, b, e, k, i, n, ii, rr) 6.75% > $3,650 6.75% > $7,300          
  8.75% > $50,000 8.75% > $50,000          
  9.90% > $125,000 9.90% > $250,000          
Pennsylvania  (a) 3.07% > $0 3.07% > $0 n.a. n.a. n.a. n.a. n.a.
Rhode Island 3.75% > $0 3.75% > $0 $9,300 $18,600 $4,350 $8,700 $4,350
(e, dd, jj) 4.75% > $68,200 4.75% > $68,200          
  5.99% > $155,050 5.99% > $155,050          
South Carolina 0.00% > $0 0.00% > $0 $12,950 (w) $25,900 (w) n.a. n.a. $4,300 (o)
(p, dd) 3.00% > $3,200 3.00% > $3,200          
  4.00% > $6,410 4.00% > $6,410          
  5.00% > $9,620 5.00% > $9,620          
  6.00% > $12,820 6.00% > $12,820          
  7.00% > $16,040 7.00% > $16,040          
South Dakota none none n.a. n.a. n.a. n.a. n.a.
Tennessee none none n.a. n.a. n.a. n.a. n.a.
Texas none none n.a. n.a. n.a. n.a. n.a.
Utah (i, kk) 4.95% > $0 4.95% > $0 $777 credit (e)  $1,554 credit (e) n.a. n.a. $1,750 credit (o)
Vermont 3.35% > $0 3.35% > $0 $6,350 $12,700 $4,350 $8,700 $4,350
(k, o, ll, qq) 6.60% > $40,950 6.60% > $68,400          
  7.60% > $99,200 7.60% > $165,350          
  8.75% > $206,950 8.75% > $251,950          
Virginia 2.00% > $0 2.00% > $0 $4,500 $9,000 $930 $1,860 $930
(n) 3.00% > $3,000 3.00% > $3,000          
  5.00% > $5,000 5.00% > $5,000          
  5.75% > $17,000 5.75% > $17,000          
Washington none none n.a. n.a. n.a. n.a. n.a.
West Virginia 3.00% > $0 3.00% > $0 n.a. n.a. $2,000 $4,000 $2,000
(a, n) 4.00% > $10,000 4.00% > $10,000          
  4.50% > $25,000 4.50% > $25,000          
  6.00% > $40,000 6.00% > $40,000          
  6.50% > $60,000 6.50% > $60,000          
Wisconsin 3.54% > $0 3.54% > $0 $11,790 $21,820 $700 $1,400 $700
(e, n, dd, mm) 4.65% > $12,760 4.65% > $17,010          
  5.30% > $25,520 5.30% > $34,030          
  7.65% > $280,950 7.65% > $374,600          
Wyoming none none n.a. n.a. n.a. n.a. n.a.
D.C. 4.00% > $0 4.00% > $0 $12,950 $25,900 n.a. n.a. n.a.
(w) 6.00% > $10,000 6.00% > $10,000          
  6.50% > $40,000 6.50% > $40,000          
  8.50% > $60,000 8.50% > $60,000          
  9.25% > $250,000 9.25% > $250,000          
  9.75% > $500,000 9.75% > $500,000          
  10.75% > $1,000,000 10.75% > $1,000,000          

(a) Local income taxes are excluded. Eleven states have county- or city-level income taxes; the average rates expressed as a percentage of AGI within each jurisdiction are: 0.12% in Alabama; 0.01% in Delaware; 0.38% in Indiana; 0.12% in Iowa; 1.48% in Kentucky; 2.69% in Maryland; 0.22% in Michigan; 0.27% in Missouri; 1.69% in New York; 1.93% in Ohio; and 1.34% in Pennsylvania. In California, Colorado, Kansas, New Jersey, Oregon, and West Virginia, some jurisdictions have payroll taxes, flat-rate wage taxes, or interest and dividend income taxes. See Jared Walczak, “Local Income Taxes in 2019,” Tax Foundation, July 30, 2019, https://taxfoundation.org/local-income-taxes-2019/.

(b) These states allow some or all of federal income tax paid to be deducted from state taxable income.

(c) For single taxpayers with AGI below $23,500, the standard deduction is $2,500. This standard deduction amount is reduced by $25 for every additional $500 of AGI, not to fall below $2,000. For Married Filing Joint (MFJ) taxpayers with AGI below $23,500, the standard deduction is $7,500. This standard deduction amount is reduced by $175 for every additional $500 of AGI, not to fall below $4,000. For all taxpayers with AGI of $20,000 or less and claiming a dependent, the dependent exemption is $1,000. This amount is reduced to $500 per dependent for taxpayers with AGI above $20,000 and equal to or less than $100,000. For taxpayers with more than $100,000 in AGI, the dependent exemption is $300 per dependent.

(d) Statutory tax rates and brackets for 2022 are shown. Brackets are adjusted annually for inflation, but 2022 inflation adjustments were not available as of publication.

(e) Standard deduction and/or personal exemption is adjusted annually for inflation. Inflation-adjusted amounts for tax year 2022 are shown.

(f) Arizona’s standard deduction can be adjusted upward by an amount equal to 25 percent of the amount the taxpayer would have claimed in charitable deductions if the taxpayer had claimed itemized deductions.

(g) In lieu of a dependent exemption, Arizona offers a child tax credit of $100 per dependent under the age of 17 and $25 per dependent age 17 and older. The credit begins to phase out for taxpayers with federal adjusted gross income (FAGI) above $200,000 (single filers) or $400,000 (MFJ).

(h) Rates apply to individuals earning more than $84,500. A separate tax tables exist for individuals earning $84,500 or less, with rates of 2 percent on income greater than or equal to $5,000; 3 percent on income greater than or equal to $10,000; 3.4 percent on income greater than or equal to $14,300; 5 percent on income greater than or equal to $23,600; and 5.5 percent on income greater than $39,700 but less than or equal to $84,500.

(i) Standard deduction or personal exemption is structured as a tax credit.

(j) Connecticut and New York have “tax benefit recapture,” by which many high-income taxpayers pay their top tax rate on all income, not just on amounts above the benefit threshold.

(k) Bracket levels adjusted for inflation each year. Inflation-adjusted bracket widths for 2022 were not available as of publication, so table reflects 2021 inflation-adjusted bracket widths.

(l) Exemption credits phase out for single taxpayers by $6 for each $2,500 of federal AGI above $212,288 and for MFJ filers by $12 for each $2,500 of federal AGI above $424,581. The credit cannot be reduced to below zero.

(m) Rates include the additional mental health services tax at the rate of 1 percent on taxable income in excess of $1 million.

(n) State provides a state-defined personal exemption amount for each exemption available and/or deductible under the Internal Revenue Code. Under the Tax Cuts and Jobs Act, the personal exemption is set at $0 until 2026 but not eliminated. Because it is still available, these state-defined personal exemptions remain available in some states but are set to $0 in other states.

(o) Standard deduction and/or personal exemption adjusted annually for inflation, but the 2022 inflation adjustment was not available at time of publication, so table reflects actual 2021 amount(s).

(p) Colorado, North Dakota, and South Carolina include the federal standard deduction in their income starting point.

(q) Connecticut has a complex set of phaseout provisions. For each single taxpayer whose Connecticut AGI exceeds $56,500, the amount of the taxpayer’s Connecticut taxable income to which the 3 percent tax rate applies shall be reduced by $1,000 for each $5,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds said amount. Any such amount will have a tax rate of 5 percent instead of 3 percent. Additionally, each single taxpayer whose Connecticut AGI exceeds $200,000 shall pay an amount equal to $90 for each $5,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds $200,000 but is less than $500,000, and by an additional $50 for each $5,000, or fraction thereof, by which the taxpayer’s AGI exceeds $500,000, up to a maximum payment of $3,150. For each MFJ taxpayer whose Connecticut AGI exceeds $100,500, the amount of the taxpayer’s Connecticut taxable income to which the 3 percent tax rate applies shall be reduced by $2,000 for each $5,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds said amount. Any such amount of Connecticut taxable income to which, as provided in the preceding sentence, the 3 percent tax rate does not apply shall be an amount to which the 5 percent tax rate shall apply. Each MFJ taxpayer whose Connecticut AGI exceeds $400,000 shall pay, in addition to the amount above, an amount equal to $180 for each $10,000, or fraction thereof, by which the taxpayer’s Connecticut AGI exceeds $400,000, up to a maximum of $5,400, and a further $100 for each $10,000, or fraction thereof, by which Connecticut AGI exceeds $1 million, up to a combined maximum payment of $6,300.

(r) Connecticut taxpayers are also given personal tax credits (1-75%) based upon adjusted gross income.

(s) Connecticut’s personal exemption phases out by $1,000 for each $1,000, or fraction thereof, by which a single filer’s Connecticut AGI exceeds $30,000 and a MFJ filer’s Connecticut AGI exceeds $48,000.

(t) In addition to the personal income tax rates, Delaware imposes a tax on lump-sum distributions.

(u) Ga. Code §48-7-20(b) provides that Georgia’s top marginal individual income tax rate will be reduced to 5.5 percent for tax years beginning January 1, 2020 or later, and expiring on December 31, 2025, if a joint resolution to reduce the rate is ratified by both chambers of the General Assembly and the governor on or after Jan. 13, 2020. As of this writing, no such resolution has been adopted, so the top marginal individual income tax rate remains at 5.75 percent.

(v) Additionally, Hawaii allows any taxpayer, other than a corporation, acting as a business entity in more than one state and required by law to file a return, to report and pay a tax of 0.5 percent of its annual gross sales (1) where the taxpayer’s only activities in Hawaii consist of sales, (2) when the taxpayer does not own or rent real estate or tangible personal property, and (3) when the taxpayer’s annual gross sales in or into Hawaii do not exceed $100,000. Haw. Rev. Stat. § 235-51 (2015).

(w) Deduction and/or exemption tied to federal tax system. Federal deductions and exemptions are indexed for inflation, and where applicable, the tax year 2022 inflation-adjusted amounts are shown.

(x) As of June 1, 2017, taxpayers cannot claim the personal exemption if their adjusted gross income exceeds $250,000 (single filers) or $500,000 (MFJ).

(y) $1,000 is a base exemption. If dependents meet certain conditions, filers can take an additional $1,500 exemption for each.

(z) Standard deduction and personal exemptions are combined: $4,500 for single and married filing separately; $9,000 MFJ and head of household.

(aa) Maine’s personal exemption begins to phase out for taxpayers with income exceeding $279,500 (single filers) or $335,400 (MFJ) (2021 inflation adjustments). The dependent personal exemption is structured as a tax credit and begins to phase out for taxpayers with income exceeding $200,000 (head of household) or $400,000 (married filing jointly).

(bb) The standard deduction is 15 percent of income with a minimum of $1,550 and a cap of $2,350 for single filers and married filing separately filers. The standard deduction is a minimum of $3,100 and capped at $4,700 for MFJ filers, head of household filers, and qualifying widows/ widowers. The minimum and maximum standard deduction amounts are adjusted annually for inflation. 2022 inflation-adjusted amounts were not announced as of publication, so 2021 inflation-adjusted amounts are shown.

(cc) The exemption amount has the following phaseout schedule: If AGI is above $100,000 for single filers and above $150,000 for married filers, the $3,200 exemption begins to be phased out. If AGI is above $150,000 for single filers and above $200,000 for married filers, the exemption is phased out entirely.

(dd) Bracket levels adjusted for inflation each year. Inflation-adjusted bracket levels for 2022 are shown.

(ee) For taxpayers whose AGI exceeds $103,025 (married filing separately) or $206,050 (all other filers), Minnesota’s standard deduction is reduced by the lesser of 3 percent of the excess of the taxpayer’s federal AGI over the applicable amount or 80 percent of the standard deduction otherwise allowable.

(ff) Montana filers’ standard deduction is 20 percent of AGI. For single taxpayers, the deduction must be between $2,140 and $4,830. For joint taxpayers, the deduction must be between $4,280 and $9,660.

(gg) New Hampshire does not tax earned income, but has a tax (currently phasing out) on interest and dividend income.

(hh) Ohio’s personal and dependent exemptions are $2,400 for an AGI of $40,000 or less, $2,150 if AGI is more than $40,000 but less than or equal to $80,000, and $1,900 if AGI is greater than $80,000.

(ii) The personal exemption credit is not allowed if federal AGI exceeds $100,000 for single filers or $200,000 for MFJ.

(jj) The phaseout range for the standard deduction, personal exemption, and dependency exemption is $217,050 to $241,850. For taxpayers with modified Federal AGI exceeding $241,850, no standard deduction, personal exemption, or dependency exemption is available.

(kk) The standard deduction is taken in the form of a nonrefundable credit of 6 percent of the federal standard or itemized deduction amount, excluding the deduction for state or local income tax. This credit phases out at 1.3 cents per dollar of AGI above $15,095 ($30,190 for married couples).

(ll) For taxpayers with federal AGI that exceeds $150,000, the taxpayer will pay the greater of state income tax or 3 percent of federal AGI.

(mm) The standard deduction begins to phase out at $16,989 in income for single filers and $24,519 in income for joint filers. The standard deduction phases out to zero at $115,240 for single filers and $134,845 for joint filers.

(nn) In lieu of the suspended personal exemption, New Mexico offers a deduction of $4,000 for all but one of a taxpayer’s dependents.

(oo) Taxpayers with net income greater than or equal to $84,501 but not greater than $90,600 shall reduce the amount of tax due by deducting a bracket adjustment amount. The bracket adjustment amount starts at $610 for individuals with net income of $84,501 and decreases by $10 for every $100 in additional net income.

(pp) Arizona H.B. 1828, enacted in 2021, reduces rates and the number of brackets for Tax Year 2022. However, implementation of that law has been suspended pending the outcome of Prop. 307, to be decided in November 2022, so H.B. 1828’s rates are not shown here.

(qq) Taxpayers also receive an additional deduction of $1,050 for each standard deduction box checked on federal Form 1040.

(rr) California and Oregon do not fully index their top brackets.  

Notable 2022 State Individual Income Tax Changes

Last year was a historic year for income tax rate reductions, with more states reducing their individual income tax rates in a single year than the U.S. has seen since the years following the federal tax reform of 1986. In 2021 alone, 13 states enacted or implemented individual income tax rate reductions. Some of these rate reductions were effective starting January 1, 2022; some were retroactive to January 1, 2021; and others are scheduled to take effect in the future. Some of the scheduled future rate reductions rely on tax triggers, where rate reductions will occur once certain revenue benchmarks are met. Other rate reductions are set to occur on specific future dates, with rates phasing down incrementally over time.

New York and the District of Columbia were the only jurisdictions to enact individual income tax rate increases in 2021.

Notable changes to major individual income tax provisions include the following:

Arizona

Arizona’s 2022 tax changes are among the nation’s most complex, as they involve—among other things—the unwinding of a prior ballot measure. Proposition 208 (2020) had created a 3.5 percent high earners tax atop the state’s existing 4.5 percent top marginal income tax rate, functionally yielding a new top rate of 8 percent. Lawmakers effectively undid the ratification through legislation, lowering the base rates to ensure that the combined top rate never exceeded 4.5 percent. They simultaneously adopted revenue triggers that could create a lower, single-rate tax.

Senate Bill 1828 would have begun the state’s conversion from a graduated individual income tax to a flat individual income tax on January 1, 2022.[3] The transition would have initially collapsed the four current tax brackets into two. Single tax filers with taxable income up to $27,272 (double if filing jointly) would have been taxed at a rate of 2.55 percent. Any taxable income exceeding that amount would have been taxed at a rate of 2.98 percent. Pending revenue triggers, the tax would eventually have been reduced to 2.5 percent, regardless of income level. However, enough signatures were gathered via petition that voters will now be asked to approve or reject the flat tax via ballot measure (Proposition 307) in the November 2022 election. In the meantime, implementation of S.B. 1828 has been suspended.

Pending the outcome of Proposition 307, Arizona’s top marginal rate is capped at 4.5 percent, even though a final decision on Proposition 208 is still pending judicial review.[4] Since the Arizona Supreme Court refused to suspend the law[5] while a lower court adjudicates details pertaining to the measure’s revenue allocation, the surtax remains in effect. Therefore, policymakers enacted S.B. 1827 to counteract the effects of Proposition 208 by automatically reducing the top marginal individual income tax rate by an amount that would keep the combined surtax and top rate from exceeding 4.5 percent.

Finally, under provisions of H.B. 2838,[6] Arizona will allow partnerships, limited liability companies (LLCs), and S corporations to pay a 4.5 percent tax at the entity level instead of having all business-related income pass through to the individual income tax. The law was passed as a SALT deduction cap workaround.[7]

Arkansas

Arkansas’s top individual income tax rate declined from 5.9 percent to 5.5 percent as a result of legislation passed during the state’s December 2021 special session.[8] Many states have multiple tax brackets, but Arkansas is unique in having entirely different tax rate schedules that vary according to income level. In 2022, the tax rate for nearly every low- and middle-income earner was reduced as legislators voted to collapse the two lower tax tables into one.

District of Columbia

As of January 1, 2022, Washington, D.C.’s individual income tax changed considerably. Enacted via the Fiscal Year 2022 Budget Support Act of 2021, the District increased the number of tax brackets from six to seven and altered many of the thresholds.[9] Changes begin for individuals with a D.C. taxable income between $250,000 and $500,000. They are assessed a tax of $19,560 plus 9.25 percent of the excess over $250,000. Those with taxable income over $500,000 but not over $1 million will pay $42,775 plus 9.75 percent of the excess over $500,000. Finally, individuals with taxable income over $1 million will be taxed $91,525 plus 10.75 percent on any amount over $1 million.

Georgia

On March 22, 2021, Georgia enacted H.B. 593, which increased the standard deduction for single filers from $4,600 to $5,400 in tax year 2022.[10]  The standard deduction for joint filers increased from $6,000 to $7,100.

Idaho

On May 10, 2021, Governor Brad Little (R) signed H.B. 380, reducing the state’s top marginal individual income tax rate from 6.925 to 6.5 percent while consolidating seven individual income tax brackets into five. These changes were retroactive to January 1, 2021. Under H.B. 380, Idaho’s top marginal individual income tax rate and third-lowest rate were both eliminated. The remaining rates were each reduced by 0.125 percentage points, except for the second-lowest rate, which was reduced by 0.025 percentage points.

On February 4, 2022, Governor Little signed H.B. 436, which further consolidates Montana’s five tax brackets to four.[11]  Under the new law, which is retroactive to January 1, 2022, the 5.5 percent bracket was eliminated, and the second-lowest rate was reduced from 3.1 percent to 3.0 percent. The top marginal rate remains at 6.5 percent.

Kansas

Kansas enacted S.B. 50, which increased the standard deduction for single filers from $3,000 to $3,500. Joint filers’ standard deduction will increase from $7,500 to $8,000. The change was made retroactive to tax year 2021.

Louisiana

Louisiana’s individual income tax looks significantly different than it did in 2021. With the approval of Amendment No. 2 in the general election held November 13, 2021,[12] the maximum individual income tax rate permitted by the state constitution decreased from 6 percent to 4.75 percent.[13] Contingent legislation then reduced individual income tax rates from 2 percent, 4 percent, and 6 percent to 1.85 percent, 3.5 percent, and 4.25 percent, respectively.[14] As of the first of the year, Louisiana’s top marginal rate is the fifth-lowest in the nation. Prior to 2022, the Pelican State’s top rate ranked 25th.

Mississippi

As of January 1, 2022, Mississippi has completed the phaseout of its 3 percent individual income tax brackets. The state has been slowly eliminating its lowest tax bracket by exempting $1,000 increments every year since 2018. The Magnolia State now effectively exempts the first $5,000 of taxable income while assessing a 4 percent tax on the next $5,000 and a 5 percent tax on all taxable income above $5,000.

Montana

Under S.B. 159, enacted on May 6, 2021, Montana’s top marginal individual income tax rate was reduced from 6.9 to 6.75 percent on January 1, 2022.[15] Additional changes enacted via S.B. 399 will take effect in subsequent years.[16] These include consolidating the state’s seven individual income tax brackets into two, with rates of 4.7 and 6.5 percent by 2024. The state will also adopt federal taxable income as the income tax starting point, thereby bringing in the federal standard deduction. Importantly, S.B. 399 will double the bracket widths for married filers, thereby removing the marriage penalty that currently exists in the state’s income tax code.

New York

While the change is retroactive to January 1, 2021, New York’s individual income tax increase is notable as one of only two individual income tax rate increases implemented in the last year. As part of the FY 2022 Enacted Budget Bill, New York’s top marginal rate for individual income taxation increased from 8.2 percent to 10.9 percent. Importantly, two tax brackets were added to the individual income tax code. Individuals are now assessed a tax of 9.65 percent on New York taxable income greater than $1,616,450 but not more than $5 million. Individuals are also subject to a 10.3 percent tax on taxable income greater than $5 million but not more than $25 million. Any taxable income exceeding $25 million is subject to the top marginal rate of 10.9 percent.

Those earning between $13,900 and $215,400 are subject to marginal tax decreases as the corresponding rates decreased from 5.9 percent and 6.33 percent to 5.85 percent and 6.25 percent, respectively. The 5.97 percent marginal rate on income between $21,400 and $80,650 was eliminated.

North Carolina

Under provisions of North Carolina’s biennial budget bill signed by Governor Roy Cooper (D) on November 18, 2021, the state’s flat income tax rate was reduced to 4.99 percent on January 1, 2022.[17] This is the first of six incremental reductions that will ultimately reduce the rate to 3.99 percent by tax year 2027.

Ohio

On July 1, 2021, Governor Mike DeWine (R) signed H.B. 110, the budget for the FY 2022-23 biennium. The law consolidated the state’s previous five individual income tax brackets into four and reduced each of the rates retroactive to January 1, 2021.[18] Specifically, the law reduced the top marginal rate from 4.797 to 3.99 percent and reduced the other rates by 3 percent across the board. The income level at which the first tax rate kicks in is also increased from $22,150 to $25,000, providing targeted tax relief at the lower end of the income spectrum.[19]

Oklahoma

Oklahoma implemented numerous changes to the individual income tax in 2022 including an across-the-board rate reduction of 0.25 percent.[20] The top rate declined from 5 to 4.75 percent, making it the ninth-lowest top marginal rate among states that levy an individual income tax. The same law also restored the refundability of the state’s earned income tax credit (EITC), which was made nonrefundable in 2016.

Wisconsin

On July 8, 2021, Gov. Tony Evers (D) approved the biennial budget for FYs 2022-23 (A.B. 68) with partial vetoes.[21] One of the approved provisions in the budget was a reduction of the second-highest individual income tax rate from 6.27 to 5.3 percent, retroactive to January 1, 2021. At 6.27 percent, Wisconsin’s penultimate individual income tax rate was higher than the top marginal rates in 23 states that levy an individual income tax. Kicking in at just over $24,000 in taxable income for single filers and $32,000 for married couples, Wisconsin’s second-highest rate affects the vast majority of the state’s taxpayers, with most paying more in income taxes to Wisconsin than they would with the same amount of income in most other states.

2015 – 2022 State Individual Income Tax Rates and Brackets


[1] U.S. Census Bureau, “2020 State Government Tax Tables,” Fiscal Year 2020, https://www.census.gov/data/tables/2020/econ/stc/2020-annual.html

[2] See Jared Walczak, “Inflation Adjusting State Tax Codes: A Primer,” Tax Foundation, Oct. 29, 2019, https://www.taxfoundation.org/inflation-adjusting-state-tax-codes/.

[3] S.B. 1828, 55th Leg., First Reg. Sess. (Ariz., 2021), https://www.azleg.gov/legtext/55leg/1R/bills/SB1828S.pdf.

[4] Howard Fischer, “Court Rules Prop 208 Surcharge Can Stay – For Now,” Arizona Capitol Times, Aug. 19, 2021, https://www.azcapitoltimes.com/news/2021/08/1t9/court-rules-prop-208-surcharge-can-stay-for-now/.

[5] Fann v. Arizona, 493 P.3d 246 (Ariz., 2021).

[6] H.B. 2838, 55th Leg., First Reg. Sess. (Ariz., 2021,) https://apps.azleg.gov/BillStatus/GetDocumentPdf/490546.

[7] Ibid.

[8] S.B. 1, 93rd Gen. Assy., Second Spec. Sess. (Ark., 2021). https://www.arkleg.state.ar.us/Bills/FTPDocument?path=%2FBills%2F2021S2%2FPublic%2FSB1.pdf.

[9] See Bill 24-285, “Amendment in the Nature of a Substitute” (D.C., 2021).

[10] H.B. 593, 2021 Gen. Assy., Reg. Sess. (Ga, 2021).

[11] H.B. 436, 66th Leg., Second Reg. Sess. (Idaho, 2022).

[12] See Louisiana Secretary of State, “Statement of Proposed Constitutional Amendments October 9, 2021,” https://www.sos.la.gov/ElectionsAndVoting/PublishedDocuments/ProposedConstitutionalAmendments2021Summaries.pdf.

[13] S.B. 159, 2021 Leg., Reg. Sess. (La, 2021).

[14] H.B. 278, 2021 Leg., Reg. Sess. (La, 2021).

[15] S.B. 159, 67th Leg., Reg. Sess. (Mont, 2021).

[16] S.B. 399, 67th Leg., Reg. Sess. (Mont, 2021).

[17] S.B. 105, 2021 Gen. Assy., Reg. Sess. (N.C., 2021).

[18] Ulrik Boesen, “Ohio Lawmakers Agree on Income Tax Cuts and Remote Work Tax Relief,” Tax Foundation, June 30, 2021, https://www.taxfoundation.org/ohio-budget-tax-cuts/.

[19] Paul Williams, “Ohio Enacts Budget With $1.6B Tax Cuts, Teleworker Refunds,” Law360, July 1, 2021, https://www.law360.com/tax-authority/articles/1399539/ohio-enacts-budget-with-1-6b-tax-cuts-teleworker-refunds-.

[20] H.B. 2962, 2021 Leg., Reg. Sess. (Okla., 2021).

[21] A.B. 68, 2021 Assy., Reg. Sess. (Wis, 2021).

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