Which state in USA has the highest income tax rate?
Answer:
The highest rate is found in Massachusetts, which has a 12% rate on out-of-state interest and dividends. Of course, most people in Massachusetts get around this by invest in Mass banks, Mass muni bonds, and low-dividend growth-oriented stocks. The effective Mass rate is more like 5 - 6 % for 99.9% of Mass residents.
Looks like Vermont tops out the highest, at 9.5%, but the rate is graduated so that's not for everybody. See site below for info on income tax rates on the various states.
In your example, "$0-$35,000 pays 15% could either mean that if your total is in that range, you pay 15% on all of it; or if there's a succession of brackets, like maybe "$35,001-$52,000 pays 20%" in your example, probably would mean you pay 15% on the first $35,000, then 20% on the next $17,000.
2004 State & Locl Revenue as a % of Personal Income is #1 Alaska 28.5%
2005 State Tax Revenue per capita #1 Vermont 11.4%
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