Highest Marginal Individual Income Tax Rate

PA's Rank Stays At th Compared To

What Is This

Highest marginal rate for personal income tax, 2020. Compiled by the Federation of Tax Administrators.

Why It's Important

This is the tax on individual income within a state. Many small corporations may file and pay taxes at the personal income tax rate. Reported here are strictly the highest marginal tax rates levied by state government on individual income. This measure excludes any federal or local government income taxes. With the proliferation of S-Corporations and LLCs, this tax also may impact the investment and location of businesses among the states.

Trend

Pennsylvania ranks 11th in the nation for its individual income tax rate, moving down from 8th in 2015. Pennsylvania’s flat rate of 3.07% is over half the median rate of 5.33%. Ohio lowered their highest marginal rate from 8.97% to 10.75%. The median rate decreased from 4.997% in 2019 to 4.8% in 2020.

Source

“State Individual Income Taxes”, Federation of Tax Administrators, 2020 | Visit website