States with no individual income tax
Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
The two states in Blue, Tennessee and New Hampshire, require you to file only if you have dividend or interest income to report.
States which require a state tax return
States which do require you to file a state income tax return are:
District of Columbia
Flat Income Tax vs. Range Income Tax
Seven states — Colorado, Illinois, Indiana, Massachusetts, Michigan, Pennsylvania and Utah — have a flat income tax, while the rest collect according to income ranges. The ranges that apply to 2012 tax rates vary not only by percentage but also by the amount of brackets within the range, with the fewest being one, the flat tax, and the most being 12. Whether you plan to file as a single or married person also affects the percentage required.
New York, for example, has the following brackets for 2102 for single persons, with the percents simply doubling for married persons filing jointly:
- 4 percent on first $8,000
- 4.5 percent between $8,001 and $11,000
- 5.25 percent between $11,001 and $13,000
- 5.9 percent between $13,001 and $20,000
- 6.85 percent between $20,001 and $200,000
- 7.85 percent between $200,001 and $500,000
- 8.97 percent on more than $500,000
Alabama has a significantly lower income tax for its residents. Single persons, heads of families and married persons filing separate returns pay:
- 2 percent on first $500
- 4 percent between $501 and $3,000
- 5 percent on more than $3,000
Married persons filing jointly pay:
- 2 percent on first $1,000
- 4 percent between $1,001 and $6,000
- 5 percent on more than $6,000
California spans a much wider range of taxpayers. Single persons and married persons filing separately pay:
- 1.25 percent on first $7,060
- 2.25 percent between $7,061 and $16,739
- 4.25 percent between $16,740 and $26,419
- 6.25 percent between $26,420 and $36,675
- 8.25 percent between $36,676 and $46,349
- 9.55 percent on more than $46,350
In California, married couples filing jointly simply double the percentage. The above percentages apply to taxable income, meaning that deductions can move you to a lower tax bracket.
To learn what the income tax rates and brackets are for your state, contact your state’s department of revenue.