Wednesday, March 22, 2023
Hawai'i Free Press

Current Articles | Archives

Wednesday, April 15, 2015
Hawaii Has Most Tax Brackets of Any State
By Selected News Articles @ 3:45 PM :: 3855 Views :: Taxes

State Individual Income Tax Rates and Brackets for 2015

by Jared Walczak, The Tax Foundation, April 15, 2015

Individual income taxes are a major source of state government revenue, accounting for 35 percent of state tax collections.[1] Their prominence in public policy considerations is further enhanced by the fact that individuals are directly responsible for paying their income taxes, in contrast to the indirect payment of sales and excise taxes. To many taxpayers, the personal income tax is practically synonymous with their own tax burdens.

Forty-three states levy individual income taxes. Forty-one tax wage and salary income, while two states—New Hampshire and Tennessee—exclusively tax dividend and investment income. Seven states levy no income tax at all.

Of those states taxing wages, eight have single-rate tax structures, with one rate applying to all taxable income. Conversely, thirty-three states levy graduated-rate income taxes, with the number of brackets varying widely by state. Three states—Kansas, Nebraska, and Oregon—impose two-rate income taxes. At the other end of the spectrum, three states have ten or more tax brackets, led by Hawaii with twelve. Top marginal rates range from Pennsylvania’s 3.07 percent to California’s 13.3 percent.

In some states, a large number of brackets are clustered within a narrow income band; Missouri taxpayers reach the state’s tenth and highest bracket at $9,001 in annual income. In other states, the top marginal rate kicks in at $500,000 (New Jersey) or even $1,000,000 (California, if one counts the state’s “millionaire’s tax” surcharge).

States’ approaches to income taxes vary in other details as well. Some states double their single-bracket widths for married filers (avoiding the “marriage penalty”) and index tax brackets, exemptions, and deductions for inflation; many others do not. Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all. In the following table, we provide the most up-to-date data available on state individual income tax rates, brackets, standard deductions, and personal exemptions for both single and joint filers.

Notable Individual Income Tax Changes in 2015

Several states changed key features of their individual income tax codes between 2014 and 2015. These changes include:

  • the sunset of Illinois’ temporary income tax rate hike, with the flat rate reverting from 5 to 3.75 percent;[2]

  • the trimming of Indiana’s top rate from 3.4 to 3.3 percent;[3]

  • an automatically triggered rate reduction from 5.2 to 5.15 percent in Massachusetts;[4]

  • the reduction of North Carolina’s rate to 5.75 percent, down from 5.8 percent in 2014 and 7.75 percent in 2013 as part of its historic 2013 tax reform package;[5] and

  • the introduction of a new bracket in the District of Columbia which subjects income between $40,000 and $60,000 to a 7 percent rate rather than including it in the 8.5 percent bracket.[6]

Forbes: The Best and Worst States for Taxes


Single Filer Married Filing Jointly
Rates   Brackets Rates   Brackets
1.40% > $0 1.40% > $0
3.20% > $2,400 3.20% > $4,800
5.50% > $4,800 5.50% > $9,600
6.40% > $9,600 6.40% > $19,200
6.80% > $14,400 6.80% > $28,800
7.20% > $19,200 7.20% > $38,400
7.60% > $24,000 7.60% > $48,000
7.90% > $36,000 7.90% > $72,000
8.25% > $48,000 8.25% > $96,000
9.00% > $150,000 9.00% > $300,000
10.00% > $175,000 10.00% > $350,000
11.00% > $200,000 11.00% > $400,000
Standard Deduction Personal Exemption
Single Couple Single Couple Dependent
$2,200 $4,400 $1,144 $2,288 $1,144


FISCAL FACT No. 462: State Individual Income Tax Rates and Brackets for 2015

State Personal Income Taxes 2015 (excel)


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni


Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii


Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii