State taxes are taxes that you pay to your state government, in addition to the federal taxes that you pay to the federal government. State taxes vary by state, but they typically include:
State income tax:
This is a tax on your income from wages, salaries, tips, interest, dividends, pensions, and other sources. The state income tax rate and brackets depend on your state and your filing status. Some states, such as Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming, do not have a state income tax.
State sales tax:
This is a tax on the purchase of goods and services within your state. The state sales tax rate and exemptions depend on your state and the type of item or service. Some states, such as Alaska, Delaware, Montana, New Hampshire, and Oregon, do not have a state sales tax, but some Alaska cities charge local sales tax.
State property tax:
This is a tax on the value of your real estate, such as your home or land. The state property tax rate and exemptions depend on your state and the type of property. Some states, such as Alabama, Hawaii, Louisiana, and West Virginia, have very low property tax rates.
Other state taxes:
These are taxes on specific items or activities within your state, such as gasoline, cigarettes, alcohol, gambling, inheritance, and estate. The rates and exemptions of these taxes depend on your state and the type of item or activity.
You have to pay state taxes if you live in or earn income from a state that imposes them. You can pay your state taxes online, by mail, or in person, depending on your state and the type of tax. You can also file your state tax return online, by mail, or through a tax preparer, depending on your state and the type of return.
State Tax Rates 2023
Here are your state income tax rates.
| State | Lowest Bracket | Highest Bracket |
|---|---|---|
| California | 1% | 13.3% |
| Hawaii | 1.4% | 11% |
| New York | 4% | 10.9% |
| District of Columbia | 4% | 10.75% |
| New Jersey | 1.4% | 10.75% |
| Oregon | 4.75% | 9.9% |
| Minnesota | 5.35% | 9.85% |
| Vermont | 3.35% | 8.75% |
| Iowa | 0.33% | 8.53% |
| Wisconsin | 3.54% | 7.65% |
| Maine | 5.8% | 7.15% |
| South Carolina | 0% | 7% |
| Washington | 0% | 7% |
| Connecticut | 3% | 6.99% |
| Nebraska | 2.46% | 6.84% |
| Montana | 1% | 6.75% |
| Delaware | 2.2% | 6.6% |
| West Virginia | 3% | 6.5% |
| Idaho | 1% | 6% |
| Rhode Island | 3.75% | 5.99% |
| New Mexico | 1.7% | 5.9% |
| Georgia | 1% | 5.75% |
| Maryland | 2% | 5.75% |
| Virginia | 2% | 5.75% |
| Kansas | 3.1% | 5.7% |
| Arkansas | 2% | 5.5% |
| Missouri | 1.5% | 5.4% |
| Alabama | 2% | 5% |
| Kentucky | 5% | 5% |
| Massachusetts | 5% | 5% |
| Mississippi | 4% | 5% |
| New Hampshire | 5% | 5% |
| North Carolina | 4.99% | 4.99% |
| Illinois | 4.95% | 4.95% |
| Utah | 4.95% | 4.95% |
| Oklahoma | 0.25% | 4.75% |
| Colorado | 4.55% | 4.55% |
| Arizona | 2.59% | 4.5% |
| Louisiana | 1.85% | 4.25% |
| Michigan | 4.25% | 4.25% |
| Ohio | 2.77% | 3.99% |
| Indiana | 3.23% | 3.23% |
| Pennsylvania | 3.07% | 3.07% |
| North Dakota | 1.1% | 2.9% |
| Alaska | 0% | 0% |
| Florida | 0% | 0% |
| Nevada | 0% | 0% |
| South Dakota | 0% | 0% |
| Tennessee | 0% | 0% |
| Texas | 0% | 0% |
| Wyoming | 0% | 0% |
You can find more information about your state taxes and how to pay them on the website of your state tax agency. You can also contact Mraz Tax Solutions if you need help with preparing and filing your state tax return or resolving any state tax issues.