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Top Ten States with the Highest Income Taxes

Find out which states residents pay the most income taxes. Income tax rates vary quite a bit from state to state and as a result can dramatically effect a person’s take home salary.

10

Pennsylvania

Income Tax Percent: 10.2%

Nearly one third of the state’s revenue comes from individual income taxes. On top of having high income taxes, Pennsylvania has the highest corporate tax rate in the country. Despite this, however, Pennsylvania is currently the only state in the country that doesn’t impose taxes on drilling for natural gas.

9

Maine

Income Tax Percent: 10.3%

For a state that places such a high tax burden on residents, nearly 35% of tax revenue comes from out of state. Maine has the 8th lowest population in the nation and the 10th lowest in total tax revenue. For alcohol and gasoline, Maine has middle-of-the-road taxes, but for tobacco, it is tied for 11th most in the country at $2.00 per pack of cigarettes.

8

Massachusetts 

Income Tax Percent: 10.4%

Despite having a high personal income tax, Massachusetts is lower than average in terms of other taxes such as gasoline tax, sales tax, and tobacco tax.

7

Minnesota

Income Tax Percent: 10.8%

Minnesota has one of the lowest tourism economies in the nation and collects only average or below average taxes on alcohol and tobacco. As a result, Minnesota is highly dependent on income tax and property tax to cover the state’s expenses. Despite being the 21st most populated state in the nation, it only collects the 12th most in taxes every year.

6

Rhode Island

Income Tax Percent: 10.9%

Rhode Island is one of the least populated states in the nation and as a result bring in one of the lowest amounts of money, however, residents of Rhode Island have one of the highest tax burdens in the country. In addition to their high income tax rate, Rhode Island has the second highest tobacco taxes in the nation, receiving $3.46 in taxes for every pack of cigarettes sold. Rhode Island also has a very high corporate tax rate of 9% and is also currently rated as the nation’s worst state for business.

5

Wisconsin

Income Tax Percent: 11.1%

Due to the tax structure in play in Wisconsin, the middle class pays a larger share of taxes than any other state, except perhaps New York. Wisconsin also receives very little federal money, which ultimately leaves very little room to for this money to offset state spending.

4

California

Income Tax Percent: 11.2%

Not only does California have the 4th highest income tax rate in the country, it also has the highest statewide sales tax, currently 8.25%. California also boasts the highest tax on gas in the nation as well. For every gallon purchased there is a 46.6 cent tax added to it.

3

Connecticut

Income Tax Percent: 12.3%

On average, each resident of Connecticut pays more than $5000 in state income taxes per year. This is a result of Connecticut having the highest per capita income of any state in the United States. It is only the 3oth most populated state in the United States, but collects the 19th most in state taxes.

2

New Jersey

Income Tax Percent: 12.4%

The state income tax rate in New Jersey is nearly double that of Alaska. Like Connecticut, much of the tax burdens falls on residents who commute to New York City and pay taxes there as well.

1

New York

Income Tax Percent: 12.8%

New York residents have a higher tax burden than those of any other state in this country. This is despite the fact that nearly 30% of the state’s tax revenue comes from non-residents. State and local taxes per capita averaged nearly $7000 per resident. New York City especially has some very high excise taxes such as the $4.85 tax on each pack of cigarettes, the highest in the country. Additionally, New York has exceptionally high property taxes. All of the top ten counties with the highest property taxes as a percentage of home value are located in New York.