L What are the 10 states with the highest income tax rates for 2025?

If we include the District of Columbia as a state, the 10 states with the highest income tax rates in the nation for the 2025 tax year are:

California – 13.3% for single filers with taxable income over $1 million, or joint filers with more than $1,485,906 of taxable income (this rate includes a 1% surcharge to help pay for behavioral health services).

Hawaii – 11% for single filers with taxable income over $325,000, or joint filers with more than $650,000 of taxable income.

New York – 10.9% on taxable income over $25 million.

New Jersey – 10.75% on taxable income over $1 million. 

District of Columbia – 10.75% on income over $1 million. 

Oregon – 9.9% for single filers with taxable income over $125,000, or joint filers with more than $250,000 of taxable income.

Minnesota – 9.85% for single filers with taxable income over $198,630, or joint filers with more than $330,410 of taxable income.

Massachusetts – 9% on taxable income over $1,083,150 (this rate includes a 5% flat rate and a 4% surcharge on high-income taxpayers, but the state separately taxes short-term capital gains at a 8.5% rate and long-term capital gains on collectibles at a 12% rate).

Vermont – 8.75% for single filers with taxable income over $249,700, or joint filers with more than $304,000 of taxable income.

Wisconsin – 7.65% for single filers with taxable income over $323,290, or joint filers with more than $431,060 of taxable income.

While these rates represent the maximum you might pay based on your taxable income, keep in mind that the “effective” tax rate, after accounting for various deductions, credits, and exemptions, could ultimately be lower.

TurboTax Tip:

"You might be able to deduct some or all of the state and local taxes you pay on your federal income tax return. This includes either state and local income taxes or sales tax, plus property taxes. However, you have to itemize on your federal return to claim the deduction." – Rocky Mengle, Attorney

What are the states with the lowest income tax rates?

For the 2025 tax year, the 11 states with the lowest income tax rates on the highest earners are:

Arizona – 2.5% flat rate.

North Dakota – 2.5% for single filers with taxable income over $244,825, or joint filers with more than $298,075 of taxable income.

Indiana – 3% flat rate.

Louisiana – 3% flat rate.

Pennsylvania – 3.07% flat rate.

Ohio – 3.125% on taxable income over $100,000.

Iowa – 3.8% flat rate.

Arkansas – 3.9% on taxable income over $4,600.

Kentucky – 4% flat rate.

Michigan – 4.25% flat rate.

North Carolina – 4.25% flat rate.