MCFE has updated its biennial study of individual income taxation across the United States in its 2013 edition of Comparison of Individual Income Tax Burdens by State. The report calculates income tax burdens of taxpayers in the 41 states that have an individual income tax and the District of Columbia.
This is the only study of its kind comparing individual income tax burdens for similar households with similar incomes across the country. MCFE calculates tax burdens for five different filing statuses at multiple income levels. For each filing status/income combination, we report state-by-state total income tax burden, income tax burden relative to the national average, and a national ranking.
The study also identifies the most and least progressive state income tax systems by calculating effective tax rate differentials between high and low income earning households.
In an era when state income tax systems are under major scrutiny and reform proposals are proliferating, this study provides a deeper, more detailed analysis of how state income tax burdens are spread among taxpayers and how those burdens compare among similar taxpayers in different states.