Apart from seven states, all forty-three states in the U.S. levy income taxes on individuals. The average income tax rate is 14.9%, and the total tax collected was $2.2 trillion, amounting to 38% of U.S. government revenue.
According to a report by the Tax Foundation, here is a list of nineteen states with the lowest taxes in 2024
North Dakota
The income tax rates in North Dakota range from 1.95% to 2.5%, with the lowest tax bracket for single filers at $44,775 and the highest at $225.975. For married joint filers, the lowest bracket is $74,750, and the highest is $275,100.
The standard deduction for single filers is $14600 and $29,200 for couples.
Arizona
Arizona has a flat rate of income tax. The state income tax rate is 2.50%, regardless of single or joint filing status. The standard deduction for single filers is $14600 and $29,200 for couples.
Pennsylvania
Pennsylvania has a flat rate of income tax. The state income tax rate is 3.07%, regardless of single or joint filing. The state also has no standard deductions and personal exemptions.
Indiana
Indiana has a flat income tax rate. The state income tax rate is 3.05%, regardless of single or joint filing. There are no standard deductions, but the state allows a personal exemption of $1000 for single filers and $2000 for couples.
Ohio
The income tax rates in Ohio range from 2.75% to 3.5%, with the lowest tax bracket for single filers at $26,050 and the highest at $92,150. For married joint filers, the lowest bracket is $26,050, and the highest is $92,150.
Ohio does not have standard deductions; however, the personal exemption for single filers is $2400, and for couples, it is $4800.
Arkansas
The income tax rates in Arkansas range from 2.0% to 4.40%, with the lowest tax bracket at $4,400 and the highest at $8,800 for both single and married filers. The standard deductions for single filers are $2,340 and $4680 for couples.
Arkansas has no personal exemption, but the state offers a personal tax credit of $29 for single filers and $58 for couples, which reduces tax liability.
Alabama
The income tax rates in Alabama range from 2.00% to 5.00%, with the lowest tax bracket at $500 and the highest at $3000 for single filers. For married joint filers, the lowest bracket is $1000, and the highest is $6000. The standard deduction for single filers is $3000 and $8500 for couples. Alabama also has a personal exemption, where single filers are entitled to $1500 while couples are entitled to $3000.
Kentucky
Kentucky has a flat income tax rate. The state income tax rate is 4.00%, regardless of single or joint filing. The standard deduction for single filers is $3160 and $6320 for couples.
Kentucky doesn’t allow any personal exemptions.
Michigan
Michigan has a flat income tax rate. The state income is 4.25%, regardless of single or joint filing. There are no standard deductions, but the state allows a personal exemption of $ 5,600 for single filers and $11,200 for couples.
Colorado
Colorado has a flat rate of income tax. The state income tax rate is 4.40%, regardless of single or joint filing. The standard deduction for single filers is $14,600 and $29,200 for couples. Colorado doesn’t have any personal exemptions.
Louisiana
Louisiana’s income tax rates range from 1.85% to 4.25%, with the lowest tax bracket at $12,500 and the highest at $50,000 for single filers. For married joint filers, the lowest bracket is $25,000, and the highest is $100,000. The state has no standard deduction, regardless of single or joint filing. Louisiana also has a personal exemption, where single filers are entitled to $4500 while couples are entitled to $9000.
Utah
Utah has a flat income tax rate. The state income tax rate is 4.65%, regardless of single or joint filing. The standard deduction in Utah is structured as a tax credit, allowing a $876 credit for single filers and $1752 for couples. Utah doesn’t have any personal exemptions.
Oklahoma
The income tax rates in Oklahoma range from 0.25%-4.75%, with the lowest tax bracket being $1000 and the highest being $7200 for single filers.
For married joint filers, the lowest bracket is $2000, and the highest is $12,200. The state standard deduction for single filers is $6350 and $12700 for couples. Oklahoma allows personal exemption to $1000 for single filers and $2000 for couples.
Mississippi
Mississippi has a flat income tax rate. The state income tax rate is 4.70%. The tax bracket is $10000, regardless of single or joint filing. The standard deduction is $2300 for single filers and $4600 for couples.
Mississippi also allows personal exemption to $6000 for single filers and $12000 for couples.
Illinois
Illinois has a flat rate of income tax. The state income tax rate is 4.95%. There are no standard deductions, but Illinois allows a personal exemption of $2775 for single filers and $5500 for couples.
Missouri
Missouri’s income tax rates range from 2.00% to 4.80%, with the lowest tax bracket for single filers at $1273 and the highest at $8911. For married joint filers, the lowest bracket is $1207, and the highest is $8449. The standard deduction for single filers is $14600 and $29200 for couples. Missouri doesn’t have any personal exemptions.
Virginia
The income tax rates in Virginia range from 2.00% to 5.75%, with the lowest tax bracket at $0 and the highest at $17000 for both single and joint filers. The standard deduction for single filers is $8000 and $16000 for couples.
Virginia also allows personal exemption to $930 for single filers and $1860 for couples.
Montana
Montana has a flat rate of income tax. The state income tax rate is 4.70% regardless of single or joint filing. The standard deduction for single filers is $14600 and $29200 for couples.
Montana doesn’t have any personal exemptions.
Georgia
Georgia has a flat income tax rate. The state income tax rate is 5.49% regardless of single or joint filing. The standard deduction for single filers is $12000 and $24000 for couples.
Georgia doesn’t have any personal exemptions.