The average American paid $1,613 in state income tax in 2022. Depending on the state you live in, you might be paying more, less than that, or nothing.
What is state income tax?
States collect state income tax from residents annually. This tax is separate from the federal income tax, which is paid to the federal government.
States generally use income tax revenue to fund services and programs for
• Education: support for elementary and secondary education (teachers’ and administrators’ salaries) and higher education (state community colleges and universities);
• Health: operation of state-specific initiatives and programs administered by the state, such as Medicaid;
• Prisons: construction, maintenance, and operation of state prison systems;
• Transportation and infrastructure: construction and maintenance of highways, bridges, airports, and public transportation systems;
• Public assistance: provision of cash or benefits to individuals or families, including child care services, temporary housing, and job training;
The amount of state income tax someone owes depends on their income level and their state’s tax rate. Some states have a flat rate, meaning everyone pays the same percentage of their income in taxes, regardless of how much they earn. Other states have a progressive rate, meaning those who earn more pay a higher percentage of their income in taxes.
And in other states, there is no income tax at all.
Which states do not charge income tax?
In 2025, there are nine states that do not charge state income tax: Alaska, Florida, Nevada, South Dakota, New Hampshire, Tennessee, Texas, Washington, and Wyoming. Two of them are recent additions to this list; New Hampshire repealed its state income tax starting January 1, 2025, and Tennessee repealed its state income tax in 2021.
Where do people pay the highest state taxes?
In 2022, the people who paid the highest average state income tax per person were:
• New Yorkers, who paid an average of $4,460.80 per person
• Californians, with $3,734.82
• Massachusetts, with $3,474.55
• The highest average local income tax per person in the country was collected in Washington, DC: $4,605.99 per person.
In addition to people living in states without taxes, the lowest taxes in 2022 were paid in:
• Tennessee, $1.34 per person
• New Hampshire ($109.99)
• North Dakota ($605.49)
• Mississippi ($862.62)
• Louisiana ($974.97)
Source: USA Facts