Income Tax Threshold

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.

toggle page width

Income Tax Threshold

State	State 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.