State Income Tax Calculator

As of 2025, nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire taxes only interest and dividend income, though this is being phased out. Residents of these states still pay federal income tax and may face higher sales or property taxes. The IRS maintains a directory of state tax agencies for state-specific filing details.

California has the highest top marginal state income tax rate at 13.3%, which applies to income over $1 million. Other high-tax states include Hawaii (11%), New Jersey (10.75%), and Oregon (9.9%). These top rates only apply to income above their respective thresholds, similar to how federal brackets work.

Generally, you owe state income tax to the state where you physically perform work, which may differ from where your employer is located. Some states have reciprocity agreements that simplify this, while others like New York apply a "convenience of the employer" rule that can tax remote workers. The IRS publishes the state tax agency directory if you need to confirm your state's specific rules.

State income taxes are added on top of your federal tax liability and can significantly increase your overall tax burden. Under OBBBA (2025+) you can deduct up to $40,000 ($20,000 MFS) in state and local taxes on your federal return if you itemize — phasing out above $500,000 MAGI toward a $10,000 floor. Pre-OBBBA (2018–2024) the cap was $10,000. The IRS provides full OBBBA SALT-cap guidance.