State Tax Rates Compared: All 50 States for 2025

Understanding how state tax rates vary across the country helps you plan smarter, compare your options, and stay compliant no matter where you live or do business. This guide covers individual income taxes, sales taxes, and property taxes by state for tax year 2025, including the most significant rate changes that took effect this year.

A Comprehensive Guide to State Tax Rates for 2025

State taxes are not one-size-fits-all. Each state sets its own rules, rates, and structures, and those rules change regularly through legislation. What was true for tax year 2024 may not apply to your 2025 return.

This guide gives you a clear framework for understanding how the 3 main categories of state taxes work, where rates sit for 2025, and how to find the most current numbers for your specific state.

Individual Income Taxes: A Diverse Landscape

As of tax year 2025, individual income tax structures vary substantially across states, reflecting each state's approach to funding public services and its broader economic goals.

States with No Income Tax

Nine states impose no individual income tax on wages and salaries:

• Alaska
• Florida
• Nevada
• New Hampshire (eliminated tax on interest and dividend income as of 2025)
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

New Hampshire completed its full elimination of the interest and dividend income tax in 2025, making it the most recent state to move to zero income tax on personal income. This is a notable change from prior years, when New Hampshire taxed only interest and dividends.

Residents of these states benefit from no state income tax liability, though they typically face other revenue sources such as higher sales taxes or property taxes.

Flat Income Tax Rates

Several states apply a single uniform rate to all taxable income, regardless of how much you earn. This simplifies tax planning since you always know your marginal rate. Notable examples for 2025:

• Colorado: 4.40%
• Illinois: 4.95%
• Georgia: Flat tax fully phased in at 5.39% (reduced from 5.49% in 2024 as part of its multi-year reduction plan)
• Michigan: 4.05%
• Indiana: 3.00% (reduced from 3.05% in 2024, continuing its phased reduction)

Graduated Income Tax Rates

Most states, plus the District of Columbia, use progressive tax systems with multiple brackets. Higher income is taxed at higher rates. California has the highest top marginal rate in the country at 13.3% for the highest earners. Other notable top rates for 2025 include:

• Hawaii: 11.00%
• New Jersey: 10.75%
• Oregon: 9.90%
• Minnesota: 9.85%
• New York: 10.90%

Recent Changes in State Income Tax Rates for 2025

Several states enacted rate reductions effective for tax year 2025. Many of these are part of multi-year reduction plans passed in prior legislative sessions.

Notable changes for 2025 include:

• Iowa: Continued its phased reduction, with the top rate dropping further as part of its plan to reach a flat 3.9% by 2026
• Georgia: Reduced its flat rate from 5.49% to 5.39%, continuing its annual step-down toward a target flat rate
• Indiana: Reduced its flat rate from 3.05% to 3.00%, the latest step in its long-running reduction plan
• Kentucky: Reduced its flat rate from 4.5% to 4.0%, continuing its annual step-down
• North Carolina: Reduced its flat rate from 4.5% to 4.25%, continuing its phased reduction
• Mississippi: Flat tax at 5% for income over $10,000 fully implemented, with a continued reduction path toward 4.0%

The overall trend for 2025 continues the pattern seen in 2024: more states moving toward lower, flatter rates rather than graduated brackets.

Verify before publishing: Confirm specific 2025 rates for the states listed above using the Tax Foundation's "State Individual Income Tax Rates and Brackets, 2025" at taxfoundation.org. Several of these states are in multi-year reduction plans and exact figures should be verified against current legislative records.

State Sales Taxes: A Vital Revenue Stream

Sales taxes are a primary revenue source for states and municipalities. They affect everyday spending and vary significantly from state to state and even city to city.

States with No Statewide Sales Tax

Five states have no statewide sales tax:

• Alaska
• Delaware
• Montana
• New Hampshire
• Oregon

Note that Alaska allows local municipalities to levy their own sales taxes, so residents in some Alaska cities still pay sales tax at the local level.

Highest and Lowest Combined Sales Tax Rates

When you add state and local rates together, the combined burden varies widely. Among the highest combined rates for 2025:

Among the lowest combined rates (for states that have a sales tax):

Recent Changes in State Sales Tax Rates for 2025

Kansas continued reducing its grocery tax rate in 2025 as part of its phased plan to eliminate the grocery tax entirely. The rate dropped from 4% (in 2024) to 2%, with full elimination planned for 2025. This is one of the most consumer-visible sales tax changes in recent years, directly reducing the cost of essential purchases.

State Tax Rates Overview for 2025

The table below summarizes income tax structures by state for tax year 2025. Combined sales tax rates are included for reference.

[UPDATE TABLE WITH 2025 RATES FROM TAX FOUNDATION]
Use Tax Foundation "State Individual Income Tax Rates and Brackets, 2025" and "State and Local Sales Tax Rates, 2025" to populate this table before publishing. The structure below mirrors the existing table format on the live page.

Rates shown are for tax year 2025. Verify current rates at your state's department of revenue or taxfoundation.org before making financial decisions.

State Property Taxes: Local Influence, State Oversight

Property taxes are primarily a local tax, but state governments set the rules that govern how they're calculated, appealed, and capped. Rates are typically expressed as a millage rate, which is a percentage of your property's assessed value.

Property tax burdens vary dramatically by state. New Jersey, Illinois, and Connecticut consistently rank among the highest effective property tax rates in the country. Alabama, Hawaii, and Louisiana tend to rank among the lowest.

Recent Changes in Property Tax Policies for 2025

Several states took action to provide homeowner relief heading into 2025:

• Texas: Increased homestead exemptions for school district property taxes from $40,000 to higher levels following voter-approved measures, continuing to deliver relief after the 2024 increases
• Colorado: Continued temporary assessment rate reductions for residential property following the significant appreciation in home values in recent years
• Florida: Expanded homestead exemption protections as part of broader affordability measures

Property tax relief has been a bipartisan priority in many states as home values remain elevated post-pandemic. Check your county assessor's website for the specific rates and exemptions that apply to your property.

How to Read State Tax Rate Tables

Tax rate tables show your tax obligation based on income levels or property values. Here's what to keep in mind when reading them:

For income tax tables:

• Graduated states show multiple brackets. You pay each rate only on the income within that bracket, not on your entire income.
• Flat-rate states show a single rate. Multiply your taxable income by that rate.
• Always start with your taxable income, not your gross income. Deductions and exemptions reduce the base before you apply the rate.

For sales tax tables:

• Look at the combined state and local rate for your specific city or county. State rates alone understate what you actually pay at the register.

For property tax tables:

• Assessed value and market value are often different. Most states apply a fraction of market value as the assessed value before applying the millage rate.

Where to Find Current State Tax Rate Tables

For the most accurate and up-to-date numbers, always use official sources:

• Your state's department of revenue website (.gov domain) for current rates, filing deadlines, and any mid-year updates
• Tax Foundation (taxfoundation.org) for comprehensive annual comparisons across all 50 states, published at the start of each tax year
• IRS.gov for federal tax rates and guidance on how federal and state tax rules interact

Avoid using rates from third-party calculators or general websites that may not reflect the latest legislative changes. Tax rates can and do change mid-year in some states through special legislative sessions.

Understanding How State Tax Rates Affect Your Extension

If you've reviewed your state's tax rates and realize you owe more than expected, filing a tax extension is a straightforward way to give yourself more time to prepare your return accurately.

A state tax extension delays your filing deadline, which prevents the failure to file penalty from accruing. It does not delay your payment obligation. If you owe taxes for 2025, you'll still want to estimate that amount and pay it by your original deadline to avoid late payment penalties.

The good news is that most states accept the federal extension automatically. File Form 4868 with the IRS before the deadline and your state return deadline typically extends as well. Some states require a separate filing, so check your state's rules before assuming federal coverage applies.

Frequently Asked Questions

Which states have no income tax in 2025?

Nine states have no individual income tax for 2025: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire completed its full elimination of the interest and dividend income tax in 2025.

Which states have the highest individual income tax rates?

California has the highest top marginal income tax rate at 13.3%, followed by Hawaii (11.00%), New Jersey (10.75%), and Oregon (9.90%).

Are state income tax rates the same as federal income tax rates?

No. State and federal income taxes are calculated separately using different rates, brackets, and rules. You file a federal return with the IRS and a separate state return with your state's revenue department. Filing a federal extension does not automatically extend your state return in all states.

How often do state tax rates change?

State tax rates can change every legislative session. Many states have multi-year rate reduction plans that lower rates by a set amount each year. Others adjust rates in response to budget conditions. Checking your state's revenue department website each filing season is the most reliable way to confirm current rates.

Does filing a state tax extension change my tax rate?

No. Filing an extension gives you more time to prepare and submit your return. It does not change your tax rate, reduce your tax liability, or extend your payment deadline. Your state tax rate for 2025 applies to your taxable income regardless of when you file.

Get More Time to File Your 2025 State Return

If you're not ready to file your full state return, you still have options. Filing a tax extension buys you the time you need to get your return right, without the failure to file penalty.

TaxExtension.com is an Authorized IRS eFile Provider with a 99% IRS approval rate. The process takes less than 5 minutes. File your extension today and handle your return on your schedule.