California tops US with highest personal income tax rate at 13%

Summary

California has the highest personal income tax rate in the United States at 13.3%, applicable only to taxable income over $1 million for single filers. This rate consists of a 12.3% base tax plus an additional 1% surcharge for high earners. In contrast, eight states, including Florida and Texas, impose no individual income tax at all; New Hampshire recently joined this group by repealing its tax on interest and dividends in 2025. While California's high rate impacts wealthy individuals, the no-income-tax states generate revenue through alternative means, such as high property taxes in Texas and substantial gaming taxes in Nevada.

Analysis