While state income tax rates vary by your income
bracket and circumstances, there are some states that will certainly take a
bigger bite out of your paycheck than others, and seven that levy no income tax
at all: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.
For income tax collections per capita in 2011, the
Tax Foundation reports that New York leads the pack at $1,864 per person. The
next four in line are: Connecticut ($1,808), Massachusetts ($1,765), Oregon
($1,425) and Minnesota ($1,404).
Here are the states with the highest top income
tax rates and the highest rates for the middle class, according to studies by
the Tax Foundation and the Heritage Foundation.
1. California and Oregon
California
Top tax rate: 13.3 percent.
With the highest top income tax rate in the
nation, California takes more from its top earners than any other state.
Oregon
Middle class tax rate: 9 percent.
When combined with federal income tax, middle
class residents of Oregon can expect to hand over 52.3 percent of their income
to the government.
2. Hawaii and Maine
Hawaii
Top tax rate: 11 percent.
Hawaii also holds the second place spot for
sales/excise tax collection per capita, taking $2,394 on average.
Maine
Middle class tax rate: 8.5 percent.
Including federal taxes, Maine’s total marginal
income tax rate is 51.8 percent.
3. Oregon and Idaho
Oregon
Top tax rate: 9.9 percent.
Oregon is the only state that lands on the top
five lists in all three categories we looked at here: top income tax rates,
middle class income tax rates and income tax collection per capita.
Idaho
Middle class tax rate: 7.8 percent.
Idaho ranks twelfth highest among states levying
an individual income tax.
4. Iowa and Hawaii
Iowa
Top tax rate: 8.98 percent.
Iowa is the only landlocked state in the top five
for highest top income tax rates, and also holds the number one spot for the
highest corporate income tax rate at 12 percent.
Hawaii
Middle class tax rate: 7.6 percent.
Hawaii frequently appears on lists of
highest-taxing states.
5. New Jersey and Minnesota
New Jersey
Top tax rate: 8.97 percent.
New Jersey is also the state with the highest
property taxes in the U.S.
Minnesota
Middle class tax rate: 7.1 percent.
Additionally, Minnesota’s corporate income tax
rate is third highest in the nation at 9.8 percent.
<Source: http://career-advice.monster.com/>