41 States That Would Tax Musk’s DOGE Dividend Check

The Department of Government Efficiency (DOGE) has reported to have found $155 billion in savings since it was created in January. President Donald Trump announced in February that there was a possibility that 20% of DOGE’s savings would go back to Americans in the form of $5,000 checks.

Right now, it’s up to Congress whether or not these checks will become a reality. 

If the DOGE dividend checks are treated as federal tax refunds, they most likely would not be subject to taxes, according to E-File. However, if those checks are classified as true ordinary “dividend” checks, then there would be federal taxes on them based on income, and some states might tax the checks as income. Based on that classification, here’s a look at which states would tax the DOGE dividend checks.

Dividend checks would be considered income in Alabama and would be subject to an income tax between 2% and 5% of the gross amount. 

Arizona has a flat income tax rate of 2.5%, so dividend checks would be subject to this as well.

Dividend checks would be considered income and subject to an income tax. Arkansas’ income tax is based on the total income, starting at 2% and going up to 3.9%. 

Those getting dividend checks in California would be subject to income tax. That tax depends on the total made and ranges from 1% to 12.3%. 

Colorado has a flat income tax rate of 4.4%, which would apply to dividend checks. 

The dividend checks would be considered income in Connecticut, and subject to a tax between 2% and 6.99% based on the total earned. 

Delaware would tax dividends as income, making them subject to a tax between 3.9% and 6.6% based on the total earned. 

Ordinary dividends are taxed as ordinary income. The state has a flat income tax rate of 5.39%.

Dividend checks would be considered income in Hawaii and would be subject to state taxes. Depending on how much you make, the tax rate ranges from 1.4% to 11%, plus additional fees. 

Idaho has a flat income tax rate that applies to ordinary dividends. That rate is 5.7%

Illinois’ income tax rate is 4.95%, which would cover dividend checks.

Indiana has a flat income tax rate of 3%, which would apply to the dividend checks.

Dividend checks would be considered income and thus be subject to Iowa’s income tax of 3.8%.

Kansas would tax dividend checks as income. That tax can range from 5.2% to 5.58%. 

Kentucky has a flat income tax rate of 4%, which would apply to the dividend checks. 

Louisiana is a tricky one. It would depend on how the dividend checks were classified. According to the Louisiana Department of Revenue, if dividends are issued by the U.S. government, they are exempt from Louisiana state income tax. However, if they were classified as ordinary income, they would be subject to an income tax rate ranging from 1.85% to 4.25%.

Maine would tax the checks as income, making them subject to a rate between 5.8% and 7.15%, plus additional fees.

Maryland would consider the checks income, with a tax rate between 4.75% and 5.75%, plus additional fees. 

The dividend checks would be considered income in Massachusetts and subject to a 5% income tax rate. 

Michigan generally includes ordinary dividends as a part of income, which would make them subject to a 4.25% tax.

Depending on which tax bracket people fell into, their dividend checks would be subject to a tax between 5.35% and 9.85%.

Those receiving dividend checks in Mississippi would be taxed the flat income tax rate of 4.4%. 

Dividend checks would be subject to the state income tax rate between 3% and 4.7%.

Montana would tax the dividend checks at the state income tax rate, which ranges between 4.7% and 5.9%.

Nebraska would tax the dividend checks as income, making them subject to a tax rate between 2.46% and 5.2%.

Dividend checks would be subject to the New Jersey state income tax rate between 1.4% and 10.75%.

New Mexico would tax the checks as income, making them subject to a rate of 1.5% to 5.9%.

New York includes ordinary dividends as a part of income, which makes them subject to income tax ranging between 4% and 10.9%.

Ordinary dividends are considered income in North Carolina and are subject to the flat 4.25% income tax.

Dividend checks would be considered income and subject to North Dakota’s income tax that ranges between 1.95% and 2.5%.

Dividend checks would be considered income in Ohio and would be subject to an income tax between 2.75% and 3.5% based on total income.

Dividend checks would be subject to the Oklahoma state income tax rate of 0.25% to 4.75%.

Dividend checks would be subject to Oregon’s state income tax, which ranges between 6.75% and 9.9%.

Dividends would be considered income in Pennsylvania and subject to a 3.07% income tax. 

Rhode Island would qualify a dividend check as income, and it would be subject to the state’s graduated state individual income tax, which ranges between 3.75% and 5.99%.

In South Carolina, income starting at $3,650 is taxed at 3%, up to 6.2%. Dividend checks would be subject to this tax. 

Dividend checks would be subject to Utah’s 4.55% income tax.

Dividend checks would be subject to the Vermont state income tax rate of between 3.35% and 8.75%.

Dividends would be considered income in Virginia and a $5,000 check would be subject to an income tax of 5% up to 5.75%.

West Virginia would tax the dividend checks at the state income tax rate, which ranges from 2.22% to 4.82%.

Dividend checks would be considered income and subject to Wisconsin’s income tax rate, which ranges from 3.5% to 7.65%.

Editor’s Note: All tax rates were obtained by TaxFoundation.org on April 7, except where otherwise noted.