CFED Scorecard

Financial Assets & Income

Outcome Measures

Income Poverty Rate

Asset Poverty Rate

Asset Poverty by Race

Asset Poverty by Gender

Asset Poverty by Family Structure

Liquid Asset Poverty Rate

Liquid Asset Poverty by Race

Liquid Asset Poverty by Gender

Liquid Asset Poverty by Family Structure

Extreme Asset Poverty Rate

Net Worth

Net Worth by Race

Net Worth by Income

Net Worth by Gender

Net Worth by Family Structure

Unbanked Households

Underbanked Households

Households with Savings Accounts

Consumers with Subprime Credit

Borrowers 90+ Days Overdue

Average Credit Card Debt

Bankruptcy Rate

Policy Priorities

Tax Credits for Working Families

State IDA Program Support

Lifting Asset Limits in Public Benefit Programs

Protections from Predatory Short-Term Loans

Additional Policies

Income Tax Threshold

Tax Burden by Income

Prize-Linked Savings

Paperless Payday

Trend Indicators

Change in Net Worth

Change in Asset Poverty

Change in Liquid Asset Poverty

Change in Consumers with Subprime Credit

Change in Average Credit Card Debt

Businesses & Jobs

Housing & Homeownership

Health Care

Education

CFED Assets & Opportunity Scorecard

Income Tax Threshold

Reports & Graphics

Definition

State income tax thresholds for single-parent head of household filers with two children, 2011.

Description

The state income tax threshold is the lowest annual income at which residents must pay the state income tax. The federal government exempts families with incomes below the poverty line from the federal income tax, but in many states, these families must still pay state income taxes. Although some states have raised their thresholds, many still continue to tax even the poorest families. Taxing the incomes of the working poor makes it even more difficult for these families to work their way out of poverty. Eliminating this tax burden for low-income households allows families to keep more of their limited incomes, thus increasing the potential for savings.

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Income Tax Threshold

StateState Income Tax
Threshold ($)
Alabama  $9,800 
Alaska  No state income tax 
Arizona  $20,100 
Arkansas  $18,500 
California  $46,900 
Colorado  $19,600 
Connecticut  $35,000 
Delaware  $26,800 
District of Columbia  $29,800 
Florida  No state income tax 
Georgia  $12,700 
Hawaii  $13,800 
Idaho  $19,700 
Illinois  $10,000 
Indiana  $18,500 
Iowa  $18,900 
Kansas  $27,800 
Kentucky  $18,500 
Louisiana  $16,800 
Maine  $25,000 
Maryland  $32,800 
Massachusetts  $26,300 
Michigan  $26,400 
Minnesota  $33,600 
Mississippi  $14,400 
Missouri  $14,500 
Montana  $10,300 
Nebraska  $27,700 
Nevada  No state income tax 
New Hampshire  No state income tax 
New Jersey  $31,300 
New Mexico  $34,200 
New York  $34,900 
North Carolina  $19,100 
North Dakota  $19,600 
Ohio  $15,000 
Oklahoma  $24,200 
Oregon  $17,000 
Pennsylvania  $25,500 
Rhode Island  $33,000 
South Carolina  $26,100 
South Dakota  No state income tax 
Tennessee  No state income tax 
Texas  No state income tax 
Utah  $20,000 
Vermont  $33,600 
Virginia  $23,300 
Washington  No state income tax 
West Virginia  $18,500 
Wisconsin  $22,000 
Wyoming  No state income tax 

Source

Oliff, Phil, Chris Mai, and Nicholas Johnson. The Impact of State Income Taxes on Low-Income Families in 2011. Washington, DC: Center on Budget and Policy Priorities, 2012.

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