Topics
Financial concepts explained in plain English, with links to calculators and official sources.
Alabama Income Tax
Alabama does not levy a state income tax on earned income. Residents pay only federal income tax.
Applies to: 2025
Alaska Income Tax
Alaska does not levy a state income tax on earned income. Residents pay only federal income tax.
Applies to: 2025
Arizona Income Tax
Arizona uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Arkansas Income Tax
Arkansas uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
California Income Tax
California has a progressive income tax with 9 brackets ranging from 1% to 12.3%, plus a 1% Behavioral Health Services Tax on income over $1 million, bringing the top rate to 13.3% — the highest in the nation. Most Californians pay an effective rate between 4% and 7%.
Applies to: 2025
Colorado Income Tax
Colorado uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Connecticut Income Tax
Connecticut uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Contractor vs Employee Compensation
Contractors typically need to charge 40-70% more per hour than the equivalent employee hourly rate to achieve comparable take-home pay, because they cover self-employment tax (15.3%), health insurance, retirement, PTO, and business expenses themselves.
Applies to: 2025
Delaware Income Tax
Delaware uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Employee Salary Equivalent
An employee salary that matches your contractor income is typically 25-40% lower than your contractor gross, because the employer covers half of FICA taxes, provides benefits, and gives paid time off that you currently fund yourself.
Applies to: 2025
Florida Income Tax
Florida does not levy a state income tax on earned income. Residents pay only federal income tax.
Applies to: 2025
Georgia Income Tax
Georgia uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Hawaii Income Tax
Hawaii uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Idaho Income Tax
Idaho uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Illinois Income Tax
Illinois uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Income Tax Brackets
The U.S. federal income tax uses seven progressive brackets with rates from 10% to 37%. Each bracket rate only applies to the income within that range — not to your entire income.
Applies to: 2025
Indiana Income Tax
Indiana uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Iowa Income Tax
Iowa uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Kansas Income Tax
Kansas uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Kentucky Income Tax
Kentucky uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Louisiana Income Tax
Louisiana uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Maine Income Tax
Maine uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Maryland Income Tax
Maryland uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Massachusetts Income Tax
Massachusetts uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Michigan Income Tax
Michigan uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Minnesota Income Tax
Minnesota uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Mississippi Income Tax
Mississippi uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Missouri Income Tax
Missouri uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Montana Income Tax
Montana uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Nebraska Income Tax
Nebraska uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Nevada Income Tax
Nevada does not levy a state income tax on earned income. Residents pay only federal income tax.
Applies to: 2025
New Hampshire Income Tax
New Hampshire does not levy a state income tax on earned income. Residents pay only federal income tax.
Applies to: 2025
New Jersey Income Tax
New Jersey uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
New Mexico Income Tax
New Mexico uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
New York Income Tax
New York uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
North Carolina Income Tax
North Carolina uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
North Dakota Income Tax
North Dakota uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Ohio Income Tax
Ohio uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Oklahoma Income Tax
Oklahoma uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Oregon Income Tax
Oregon uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Pennsylvania Income Tax
Pennsylvania uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Rhode Island Income Tax
Rhode Island uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
South Carolina Income Tax
South Carolina uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
South Dakota Income Tax
South Dakota does not levy a state income tax on earned income. Residents pay only federal income tax.
Applies to: 2025
Tennessee Income Tax
Tennessee does not levy a state income tax on earned income. Residents pay only federal income tax.
Applies to: 2025
Texas Income Tax
Texas does not levy a state income tax on earned income. Residents pay only federal income tax.
Applies to: 2025
Utah Income Tax
Utah uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.
Applies to: 2025
Vermont Income Tax
Vermont uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Virginia Income Tax
Virginia uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Washington Income Tax
Washington does not levy a state income tax on earned income. Residents pay only federal income tax.
Applies to: 2025
West Virginia Income Tax
West Virginia uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Wisconsin Income Tax
Wisconsin uses progressive income tax brackets. Each rate applies only to income within that range, similar to the federal system.
Applies to: 2025
Wyoming Income Tax
Wyoming does not levy a state income tax on earned income. Residents pay only federal income tax.
Applies to: 2025