These US states have the bottom flat state revenue tax charges

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Do you reside in one among these states?

key factors

  • Some states have a uniform revenue tax fee that applies to all residents no matter revenue.
  • Colorado, Kentucky and Michigan all record the bottom flat state revenue tax charges.

Paying state and federal taxes on earned revenue is the norm for a lot of People. However tax charges can fluctuate tremendously from state to state. 9 states have a uniform tax fee for all residents. Which means that all low-income and high-income residents pay tax on the similar fee. These states are:

  • Colorado
  • Illinois
  • Indiana
  • Kentucky
  • Massachusetts
  • Michigan
  • North Carolina
  • Pennsylvania
  • Utah

Two different states are additionally notable on this dialogue: New Hampshire and Washington. These two states do not impose state revenue tax on common earned revenue, Nonetheless, they cost the same fee tax for different tax conditions.

new Hampshire: Residents pay a tax fee of 5% on curiosity and dividends.

Washington: Residents are liable for paying a 7% tax on the sale or alternate of long-term capital property if their income exceed $250,000 yearly.

States with the bottom flat state revenue tax charges

This is a better have a look at the states with the bottom flat state revenue tax charges based mostly on present tax charges.


Pennsylvania is the state with the bottom flat state revenue tax fee. All residents of this state pay 3.07% on earned revenue.


Indiana’s state revenue tax fee just isn’t far off. All residents of this state pay 3.23% on earned revenue.


All Michigan residents pay a 4.25% tax on earned revenue.


Colorado residents pay a tax fee of 4.55% on earned revenue.


Illinois residents pay a 4.95% tax on earned revenue.


Like residents of Illinois, residents of Utah pay a tax fee of 4.95% on earned revenue.

The opposite three states (North Carolina, Massachusetts and Kentucky) with flat state revenue tax charges cost 5% or extra.

What about states with no flat fee tax?

Some states would not have a flat fee state revenue tax. It is price noting that there are some states with decrease tax charges than the charges listed above — particularly for low-income residents.

For tax 12 months 2021, Ohio residents with taxable revenue of as much as $25,000 pay a 0% state revenue tax fee – which means they aren’t liable for paying any state revenue tax.

North Dakota has the bottom state revenue tax fee of 1.1%. This fee applies to a single earner with revenue as much as $40,525. Married {couples} submitting collectively with incomes as much as $67,700 additionally pay this fee.

When you just lately moved to a brand new state or are planning to relocate sooner or later, make sure you analysis the state’s revenue tax system so you already know what to anticipate.

Three tricks to make tax season simpler

It is the uncommon one that waits for tax season, however submitting your taxes should not be a headache. Listed below are some tricks to get you began.

  1. get organized. If you have not began submitting your taxes but, now is a superb time to get organized. Be sure you have all your tax and monetary paperwork prepared in order that the submitting course of is straightforward.
  2. don’t delay. It’s best to file early slightly than later. It might take you longer than it takes to file your return. Additionally, the IRS is backlogged, so there are important delays. When you’re anticipating a tax refund, you may need to file ASAP to attenuate fee delays.
  3. Use tax software program. When you want some steering when submitting, tax software program can simplify the method. Take a look at our greatest tax software program record to be taught extra.

Ascent’s greatest tax software program for 2022

Our unbiased analysts have a look at perks and person critiques to land you the best-in-class choose for submitting your taxes for the preferred tax supplier providers. Begin by reviewing our record of the very best tax software program for 2022.

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