Advertiser Disclosure
GOBankingRates works with many financial advertisers to showcase their products and services to our audiences. These brands compensate us to advertise their products in ads across our site. This compensation may impact how and where products appear on this site. We are not a comparison-tool and these offers do not represent all available deposit, investment, loan or credit products.
17 States With Low Income Taxes
Written by
Gabrielle Olya
Edited by
Levi Leidy

Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 YearsHelping You Live Richer
Reviewed by Experts
Trusted by Millions of Readers
There are currently seven states in the U.S. with zero income taxes — but these aren’t your only options if you’re looking to hold onto more of your paycheck. There are states where the top marginal state individual income tax rate is under 5%.
Here’s a look at the 17 states with low income taxes.
Arizona
- Top marginal state individual income tax rate: 2.50%
Arkansas
- Top marginal state individual income tax rate: 4.40%
Colorado
- Top marginal state individual income tax rate: 4.40%
Illinois
- Top marginal state individual income tax rate: 4.95%
Indiana
- Top marginal state individual income tax rate: 3.05%
Kentucky
- Top marginal state individual income tax rate: 4.00%
Louisiana
- Top marginal state individual income tax rate: 4.25%
Michigan
- Top marginal state individual income tax rate: 4.25%
Mississippi
- Top marginal state individual income tax rate: 4.70%
Missouri
- Top marginal state individual income tax rate: 4.80%
New Hampshire
- Top marginal state individual income tax rate: 3.00%
North Carolina
- Top marginal state individual income tax rate: 4.50%
North Dakota
- Top marginal state individual income tax rate: 2.50%
Ohio
- Top marginal state individual income tax rate: 3.50%
Oklahoma
- Top marginal state individual income tax rate: 4.75%
Pennsylvania
- Top marginal state individual income tax rate: 3.07%
Utah
- Top marginal state individual income tax rate: 4.65%
More From GOBankingRates
- Nearly 1 in 3 Americans Hit by a Costly Holiday Scam, Norton Survey Shows -- How To Avoid This
- Here's What Retirees Wasted the Most Money On in 2025 -- and How To Avoid It in 2026
- How Middle-Class Earners Are Quietly Becoming Millionaires -- and How You Can, Too
- 6 Safe Accounts Proven to Grow Your Money Up to 13x Faster
Share This Article:
You May Also Like
I Asked ChatGPT How Billionaires Pay Hardly Any Taxes -- Here's What It Revealed
December 24, 2025
2 min Read
Why a $600,000 Salary Can Face 50% Tax Rates While Elon Musk's $670 Billion Often Goes Untaxed
December 22, 2025
2 min Read
I Asked ChatGPT What Would Happen If Billionaires Paid Taxes at the Same Rate as the Middle Class
December 22, 2025
2 min Read
10 Tax Deductions and Credits You're Probably Missing That Could Save You Thousands in 2026 and Beyond
December 18, 2025
2 min Read
How To Get a Head Start on Your 2026 Tax Return in January -- Tax Experts Share 8 Moves
December 12, 2025
2 min Read
I'm a Tax Expert: 9 End-of-Year Tax Moves You Should Make Before Dec. 31
December 11, 2025
2 min Read
Financial Expert: Here's the Smartest Way Boomers Can Give Kids Tax-Free Money
December 10, 2025
2 min Read
I Asked ChatGPT What Would Happen If Billionaires Paid Taxes at the Same Rate as the Working Class
December 11, 2025
2 min Read
You're Probably Overpaying the IRS by $1,000 or More a Year: Here's How To Stop
December 10, 2025
2 min Read
Trump's Tax Promises for the Middle Class: How Much of Them Has He Fulfilled?
December 10, 2025
2 min Read
Make your money work for you
Get the latest news on investing, money, and more with our free newsletter.
By subscribing, you agree to our Terms of Use and Privacy Policy. Unsubscribe at any time.

Thanks!
You're now subscribed to our newsletter.
Check your inbox for more details.

Sending you timely financial stories that you can bank on.
Sign up for our daily newsletter for the latest financial news and trending topics.
For our full Privacy Policy, click here.
Looks like you're using an adblocker
Please disable your adblocker to enjoy the optimal web experience and access the quality content you appreciate from GOBankingRates.
- AdBlock / uBlock / Brave
- Click the ad blocker extension icon to the right of the address bar
- Disable on this site
- Refresh the page
- Firefox / Edge / DuckDuckGo
- Click on the icon to the left of the address bar
- Disable Tracking Protection
- Refresh the page
- Ghostery
- Click the blue ghost icon to the right of the address bar
- Disable Ad-Blocking, Anti-Tracking, and Never-Consent
- Refresh the page




