CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS

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Rates are as of Jan 1, 2024.

What is a marginal tax rate?

In many states, the tax rate you pay escalates with increasing income. As you earn more, you progress into higher brackets, and the income in those brackets is taxed at a higher rate. This taxation approach is called progressive taxation,  and it’s designed to tax individuals proportionately to their earnings. In theory, the objective is for lower-income earners to pay a lower tax rate, while higher-income earners pay a higher tax rate.

This map illustrates the highest possible individual income tax rate someone might pay for the last dollar they make in a year. Note: That’s also likely to be higher than their effective tax rate (the average tax rate). 

Of course, some states also have no individual state income tax, and others have a flat tax.

Which states have a flat tax?

As of the 2024 tax season, 12 states have a flat individual income tax. Those states are:

  • Arizona
  • Colorado
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Kentucky
  • Michigan
  • Mississippi
  • North Carolina
  • Pennsylvania
  • Utah

Which states have no individual income tax?

As of the 2024 tax season, 9 states don’t tax individual income at all. Those states are:

  • Alaska
  • Florida
  • Nevada
  • New Hampshire
  • South Dakota
  • Tennessee
  • Texas
  • Washington
  • Wyoming

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