How Progressive State Income Tax Brackets Work

While the federal income tax system is consistently progressive across the entire United States, **state-level income taxes** vary dramatically from one border to the next. States generally employ one of three main state income tax models.

1. No-Income-Tax States

Nine US states do not levy any state personal income tax (including Texas, Florida, Nevada, Washington, Alaska, Wyoming, South Dakota, Tennessee, and New Hampshire). Workers in these states only face federal taxes.

2. Flat-Tax States

Several states utilize a simple flat-tax model (like Colorado at 4.40%, Illinois at 4.95%, or Pennsylvania at 3.07%). In these jurisdictions, every dollar of your taxable state income is taxed at the exact same flat percentage.

3. Progressive State-Tax States

The remaining states (such as California, New York, New Jersey, or Maryland) mimic the federal progressive structure. As your income increases, your salary steps up through multiple marginal brackets. For example, California features nine progressive tax brackets top-capped at 13.3%, while New York has nine brackets top-capped at 10.9%.