Highest Tax States in America
Quick Answer
The states with the highest income tax rates in 2025 include California (up to 13.3%), Hawaii (up to 11%), New Jersey (up to 10.75%), Oregon (up to 9.9%), and Minnesota (up to 9.85%). Living in a high-tax state can cost you $5,000 to $15,000 more per year compared to a no-income-tax state like Texas or Florida, depending on your income level.
Top 10 Highest Income Tax States (2025)
| Rank | State | Top Rate | Top Rate Kicks In At |
|---|---|---|---|
| 1 | California | 13.3% | $1,000,000 |
| 2 | Hawaii | 11.0% | $200,000 |
| 3 | New Jersey | 10.75% | $1,000,000 |
| 4 | New York | 10.9%* | $25,000,000 |
| 5 | Oregon | 9.9% | $125,000 |
| 6 | Minnesota | 9.85% | $193,240 |
| 7 | Vermont | 8.75% | $229,500 |
| 8 | Wisconsin | 7.65% | $405,550 |
| 9 | Iowa | 5.7%** | Flat in 2025 |
| 10 | Maine | 7.15% | $61,600 |
*New York City adds up to 3.876% on top of the state rate. **Iowa recently flattened its rate.
Real Example With Actual Numbers
Compare a $120,000 salary across high-tax and low-tax states (single filer):
| State | State Income Tax | Take-Home Difference vs Texas |
|---|---|---|
| California | ~$6,300 | -$6,300 |
| New York (state only) | ~$6,100 | -$6,100 |
| New York City (state + city) | ~$9,800 | -$9,800 |
| Oregon | ~$8,400 | -$8,400 |
| Minnesota | ~$6,900 | -$6,900 |
| Texas | $0 | Baseline |
| Florida | $0 | Same as Texas |
Someone in New York City earning $120,000 pays nearly $10,000 more in state and local income taxes than someone in Texas. That is over $800/month. Compare your specific scenario with the relocation tool.
The Hidden Costs Beyond the Top Rate
The top rate only tells part of the story. What matters more for most workers is the effective state tax rate at their income level:
| State | Rate on $75K Income | Rate on $200K Income |
|---|---|---|
| California | ~4.3% | ~6.8% |
| New York | ~5.2% | ~6.2% |
| Oregon | ~8.5% | ~9.2% |
| Minnesota | ~6.0% | ~8.0% |
Oregon stands out because its high rate kicks in at a relatively low income ($125,000), meaning middle-class earners feel the full impact. California's high rates only apply above $1 million, so most workers pay a more moderate effective rate.
Additional State-Level Taxes
Some high-tax states pile on extra costs:
- California SDI: 1.1% on all wages
- New York City tax: Up to 3.876% on top of state tax
- New Jersey: Has both high income tax and the highest property taxes in the nation
- Oregon: No sales tax, which partially offsets the income tax
Should You Move?
Relocating from a high-tax state to a no-tax state can yield significant savings, but consider:
- Cost of living: Housing in Florida and Texas varies widely by city
- Career opportunities: High-tax states often have higher salaries to compensate
- Quality of services: Higher taxes often fund better public schools, infrastructure, and services
- Remote work: If you can keep a high-tax-state salary while living elsewhere, the savings are maximized. See remote work tax rules
Use the relocation tool to compare total take-home pay across states, or check any state at the SalaryHog calculator.