Pennsylvania is the state with the lowest income tax out of all the states that do have an income tax. The income tax rate in Pennsylvania is 3.07 percent, which is a flat tax charged across all income levels.
Seven states do not charge income tax in the United States. Tennessee and New Hampshire only charge tax on interest and dividend income, but not income tax on wages earned. California has the highest income tax in the country, at 13.3 percent.
Many of the states with a low income tax make up for the revenue with higher property or sales taxes. Also, factors like exemptions and deductions available should be taken into account to look at the true effective income tax rate.