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1 Morgan Scarboro, State Individual Income Tax Rates and Brackets for 2017 1 (2017)

handle is hein.taxfoundation/stidvcxrb0001 and id is 1 raw text is: FISCAL FACT No. 544 Mar. 2017 The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and local levels. We are a 501(c)(3) non-profit organization. @2017 Tax Foundation Distributed under Creative Commons CC-BY NC 4.0 Editor, Rachel Shuster 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 2017 Morgan Scarboro Policy Analyst Key Findings: * Individual income taxes are a major source of state government revenue, accounting for 36 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. California and Missouri each have ten brackets, the most in the country. * 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.