Most & Least Taxing States: 2014

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

Photograph by Andrew Harrer/Bloomberg

Company Symbol % Change
3 of 56

The Lowest Top Income Tax Rates

1. Pennsylvania 3.07%* (a) 

2. North Dakota 3.22%

3. Indiana 3.4%* (a) 

4. Michigan 4.25%* (a) 

5. Arizona 4.54%

6. Colorado 4.63%* ** (d) 

7. Kansas 4.8% (a)

8. New Mexico 4.9%

9. Alabama 5% (a, b): tied with Illinois*, Mississippi, New Hampshire* (c) and Utah

*flat rate

**of federal adjusted gross income with modifications 

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) Tax applies to interest and dividend income only.

(d) of federal taxable income