The majority of U.S. states levy personal income tax on residents on top of what they owe to the federal government. State governments collected $344 billion from individual income taxes in 2016, according to the Tax Policy Center, making up 27% of states’ own-source general revenue. Some states charge flat income tax rates that apply to every resident, but most states use progressive tax structures. This means that like the federal government, these states tax higher levels of income at higher state income tax rates. For people considering moving across state lines for work or after they retire, significantly higher or lower personal income tax rates can be a deciding factor. The following states have the highest and the lowest potential personal income tax rates as of Jan. 1, 2020, according to the Federation of Tax Administrators.
(Kaitlin Miller, The Active Times)