Top 10 States with the Lowest State Income Tax

Photo by Alan Stark

Photo by Alan Stark

Arizona

Even though Arizona has a state income tax, it is still quite affordable because the top tax rate of 4.54% is not applied until the taxable income tops $150,000 per individual. Some states apply the top rate at as little as $6,000.

This means that your state income tax if you make less than $150,000 per year will be between 2.59% and 4%. Sales tax is somewhat steep at 5.6% but excludes prescriptions and groceries.

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