About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


1 Nicole Kaeding, State Individual Income Tax Rates and Brackets for 2016 1 (2016)

handle is hein.taxfoundation/sindvitrb0001 and id is 1 raw text is: FOUNDATION FISCAL FACT Feb. 2016 No. 500 The Tax Foundation is a 501(c)(3) non-partisan, non-profit research institution founded in 1937 to educate the public on tax policy. Based in Washington, DC, our economic and policy analysis is guided by the principles of sound tax policy: simplicity, neutrality, transparency, and stability. @2016 Tax Foundation Distributed under Creative Commons CC-BY NC 4.0 Editor, Melodie Bowler Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org State Individual Income Tax Rates and Brackets for 2016 By Nicole Kaeding Economist Key Findings Individual income taxes are a major source of state government revenue, accounting for 27 percent of state tax collections. Forty-three states levy individual income taxes. Forty-one tax wage and salary income, while two states-New Hampshire and Tennessee-exclusively tax dividend and interest income. Seven states levy no income tax at all. Of those states taxing wages, eight have single-rate tax structures, with one rate applying to all taxable income. Conversely, 33 states levy graduated-rate income taxes, with the number of brackets varying widely by state. States' approaches to income taxes vary in other details as well. Some states double their single-bracket widths for married filers to avoid the marriage penalty. Some states index tax brackets, exemptions, and deductions for inflation; many others do not. Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all.