Most & Least Taxing States: 2014

By Rebecca Helmes of Bloomberg BNA - 2014-04-14T23:05:22Z

Photograph by Daniel Acker/Bloomberg

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The Highest Top Income Tax Rates

As of Jan. 1, nine states don't levy income tax on wages, and eight have a flat tax. Brackets in which taxes kick in differ by state, as do exemptions.

1. California 13.3%

2. Hawaii 11%

3. Oregon 9.9% (a, b)

4. Minnesota 9.85%

5. Iowa 8.98% (b)

6. New Jersey 8.97% (a)

7. Vermont 8.95% (tie)

7. Washington, D.C. 8.95% (tie)

9. New York 8.82% (a, c)

10. Maine 7.95%

a) Local income taxes are excluded.

b) Allows "some or all federal income tax paid to be deducted from state taxable income," according to the Tax Foundation.

c) The Tax Foundation notes that New York has "'tax benefit recapture, by which many high-income taxpayers pay their top tax rate on all income, not just on amounts above the bracket threshold.”