Individual income taxes accounted for 33% of state tax collections in fiscal year 2024, the latest year with available data, The Tax Foundation reported this week.
Forty-two states levy individual income taxes, 41 on wage and salary income. Washington collects taxes only on capital gains income, while Missouri exempts capital gains income from its income tax.
Eight states do not levy individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming.
Of those that tax wage and salary income, 15 have single-rate tax structures, wherein one rate applies to all taxable income. Twenty-six states and the District of Columbia levy graduated-rate income taxes, with the number of brackets varying widely by state.
The Tax Foundation's report includes the most up-to-date data available on state individual income tax rates and brackets for both single and joint filers as of Feb. 11.
See the gallery for the 10 states with the highest individual income tax rates.
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