California has the highest state income taxes for top earners
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California has the highest top marginal income tax rate for individuals in the U.S.
Why it matters: State income taxes vary widely by state — from nonexistent up to nearly 14% for especially high earners.
- California's tax rates, for instance, range from 1% to 13.3%.
Between the lines: The rates shown in the map above are the highest paid by the residents earning the most money.
Zoom in: In California, the maximum rate applies to individuals who earn more than $1 million annually. Earners in this income bracket also must pay a 1% surcharge for mental health services.
Zoom out: Hawai'i (11%) and New York (10.9%) also had the highest rates, while Arizona and North Dakota (both 2.5%) had the lowest among states with an income tax.
Caveat: The data, sourced from the nonpartisan Tax Foundation, did not include local taxes, some state-specific taxes and a capital gains surtax on high earners in Minnesota.
The big picture: States with low or no individual income tax, including Texas and Florida, have been attracting many new residents — but could find themselves in trouble in a world with less federal aid.
The intrigue: States like Arizona and Illinois have a flat income tax — meaning everyone pays the same rate regardless of their income.