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17 States With Low Income Taxes



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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%
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