Some state income tax rates for tax year 2014 were as follows: Alabama, 5 percent; Hawaii, 11 percent; New York, 8.82 percent; and Ohio, 5.392 percent. State tax laws, structures and allowed exemptions vary greatly, and the range of tax rates for 2014 ran from 0 to 13.3 percent.
Although someone in the highest tax bracket in California may pay the highest state income tax rate in the country, other residents of the state may pay as little as 1 percent of their income in state taxes if they belong in the lowest tax bracket. This progressive tax structure is also in effect in many other states, although the income levels that define the tax brackets also vary greatly from state to state. Whereas in New York the top marginal rate is paid by those who earn $1,029,250 or more, in Idaho, an income of only $10,567 earns a taxpayer a spot in the highest tax bracket, with a state income tax rate of 7.4 percent.
Other states levy a flat state income tax rate on all taxpayers, including Illinois at 5 percent, Indiana at 3.4 percent, and Michigan with 4.25 percent. In seven states -- Alaska, Nevada, Washington, Wyoming, South Dakota, Texas and Florida -- taxpayers do not pay a state income tax at all.