With top marginal rates in Louisiana reaching 6%, the state income tax rate is among the highest in the South—and No. 1 in the Deep South.
That’s according to the Tax Foundation, which released a report Wednesday comparing marginal income tax rates across the nation.
Individual income taxes are a major source of state government revenue, accounting for 38% of state tax collections in fiscal year 2018, according to the Tax Foundation. Forty-two states levy individual income taxes, with 41 states taxing wage and salary income and New Hampshire exclusively taxing dividend and interest income. Eight states, including Texas and Florida, levy no individual income tax.
On the other hand, 32 states—including Louisiana— levy graduated-rate income taxes, with the number of brackets varying widely by state. Louisiana has three brackets, with individuals making over $50,000 being taxed 6%.
Hawaii has 12 brackets, the most in the country. Read the full report.