New Report: Comparison of Individual Income Tax Burdens by State

The Minnesota Center For Fiscal Excellence (MCFE) has released its 2021 edition of Comparison of Individual Income Tax Burdens by State.  The study, based on tax year 2018 information, captures for the first time the impacts of the federal Tax Cuts and Jobs Act.  It is the tenth edition of this report, published biennially.   

The study models nearly 1,600 distinct income tax returns for 38 taxpayer "profiles" (unique combinations of income levels and filing types) in the 41 states and the District of Columbia that have an individual income tax.  The result is a unique perspective on state and local income taxation different from comparison and ranking studies based on simple tax rate comparisons or aggregate income tax collections.   

The report also includes:

• the top ten most and least progressive state income tax systems based on effective tax rate differences
• a comparison of the value of state earned income tax credits for selected taxpayer profiles 
• the change in national rank and tax burden relative to the national average since the last edition of this report (tax year 2016)
• federal income and payroll tax liabilities

Look for additional analysis from us on this study and the impacts of the TCJA  in the near future.

Minnesota Summary Results