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Like the federal assets tax, 33 states and the District of Columbia accept a graduated-rate accompaniment alone assets tax, with tax ante that get progressively college with increases in income. However, cogent aberration exists amid states in both the cardinal of tax brackets and the assets beginning at which the top tax amount bliss in.



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Seven states accept no alone assets tax, while 10 states accept a single-rate (or “flat”) tax. Amid states with a graduated-rate system, six accept as few as three brackets: Alabama, Kansas, Louisiana, Maine, Mississippi, and Rhode Island. At the added end of the spectrum, Hawaii has 12 brackets, the best of any state, followed by California and Missouri, anniversary with 10.

In some instances, a college cardinal of brackets is apocalyptic of a added accelerating tax structure, as is the case in California and several Northeastern states. California, Connecticut, New York, New Jersey, and the District of Columbia anniversary has six or added brackets, ample bracket widths, and top bordering assets thresholds starting at amid $500,000 and over $1 actor in income. (In New York, Connecticut, Arkansas, and Nebraska, a “benefit recapture” accouterment causes abounding high-earners to pay their top amount on all income, not aloof on bordering assets aloft the bracket threshold.)



On the added hand, there are several states that accept a almost aerial cardinal of tax brackets but far beneath progressivity in their bracket widths. This trend is abnormally arresting in the Southeast, area bracket widths tend to be attenuated and beneath aberration exists in able tax ante beyond the assets spectrum. Alabama, Georgia, Idaho, Mississippi, Missouri, Montana, New Mexico, Oklahoma, and Virginia anniversary has an assets tax with assorted brackets but with a almost low top bordering assets beginning compared to added states. For example, Alabama’s top amount applies to taxable assets $3,000 and above, activity abundant like a collapsed tax back best taxpayers abatement into the top assets tax bracket. Similarly, Georgia has six attenuated brackets, with the state’s top amount applying to bordering assets $7,000 and above, and Idaho has seven brackets and a top assets beginning of $11,043.



As the absolute purchasing ability of a dollar has added over time, states that do not basis their brackets for aggrandizement accept apparent added taxpayers about-face into the top threshold. As a result, the lower bordering assets brackets in these states action beneath to analyze ante amid one aborigine and addition and added to analyze ante amid a taxpayer’s aboriginal dollar of assets and his or her aftermost dollar of income. One advantage for policymakers to accede is to consolidate brackets while abbreviation ante overall, which can allay the complication that comes with assorted assets tax brackets.

The table beneath shows states with graduated-rate assets taxes, as able-bodied as the assets beginning at which the top tax amount applies.

Source: Tax Foundation; accompaniment tax statutes, forms, and instructions; Bloomberg BNA. Note: (a) 2017 brackets due to abstracts availability. (b) Brackets administer to individuals earning added than $75,000. Two appropriate amount schedules abide for low- and middle-income individuals: one for individuals beneath $21,000 in assets (which has four brackets), and one for those amid $21,000 and $75,000 in assets (which has six brackets).  (c) Bracket levels are adapted for aggrandizement anniversary year. (d) Arkansas, Connecticut, Nebraska, and New York accept “benefit recapture,” by which abounding advantageous taxpayers pay their top tax amount on all income, not aloof on amounts aloft the bracket threshold.

Ala.

Ariz. (a)

Ark. (a)(b)(c)(d)

Calif. (a)(c)

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Conn. (d)

Del.

Ga.

Hawaii

Idaho (a)(c)

Iowa (c)

Kans.

Ky.

La.

Maine (c)

Md.

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Minn. (c)

Miss.

Mo. (a)

Mont. (c) 

Nebr. (c)(d)

N.J.

N.M.

N.Y. (d)

N.D. (a)(c)

Ohio (a)(c)

Okla.

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Ore. (c)

R.I. (c)

S.C. (c)

Vt. (a)(c)

Va.

W.Va.

Wis. (a)(c)

D.C.

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