State Income Taxes Updates for 2020

Tax Rates as Entered in TOTAL Online:

Annual updates to TOTAL’s state tax information will be rolling out on July 16 for all users who have elected for automatic state tax updates. Automatic updates to state tax information are only available for TOTAL Online users. For desktop users or those who wish to update their state tax tables before July 16, the information is currently available to update whenever you wish.

Updating State Tax Information

To review current state tax information got to Settings > State Tax. There is a button titled “Reset All State Tax Settings.” Click it to immediately update all state tax information for your account.

Information for individual states can also be modified in the state tax settings by using the various fields available. The information used for individual states (including New York City and Washington DC) is provided below.

Online users can also enroll for automatic state tax updates by checking the box titled “Allow Money Tree to Update State Tax.” For 2020 automatic updates will roll out on July 16.

How Moneytree Looks at State Taxes

Screenshots of the state tax rates as entered in TOTAL Online are available below. The tax settings have been entered in a conservative manner.

In many states there are standard deductions near or equal to the amount of the federal deductions, but do not allow all federal itemized deduction items.  For those states, the state tax rates are set to apply to AGI, leaning towards conservative assumptions. Choosing to apply state tax rates to federal taxable income would include all federally allowed itemized deductions (or federal standard deduction if not itemizing) for the state tax calculations.

The option to exclude retirement account withdrawals is not selected for any states that offer partial exemptions of retirement income.

For states only taxing interest and dividend income (New Hampshire and Tennessee) the tax rate is applied to all income except of Social Security and Retirement Account Withdrawals given the availability of those options.

Remember, adjustments can be made per plan.  An option to exclude pension plans taxes on either the federal or state level is available on Pension plan data.  Additional adjustments can be made using Tax Details plan data to adjust the client’s state taxable income or tax amount.

Information Resource:

State Individual Income Tax Rates and Brackets for 2020

State Tax Information per State

Jump to State:
AL | AK | AZ | AR | CA | CO | CT | DE | FL | GA | HI | ID | IL | IN | IA | KS | KY | LA | ME | MD | MA | MI | MN | MS | MO | MT | NE | NV | NH | NJ | NM | NY | NYC | NC | ND | OH | OK | OR | PA | RI | SC | SD | TN | TX | UT | VT | VA | WA | WV | WI | WY | D.C.


The Tax Foundation’s article includes notable changes for the year and a graphic displaying the approximate state tax rates across the United States.  California has the highest top marginal tax rate of 13.3%.

stateTaxGraphic2020


Alabama

Alaska

Arizona

AZ

Arkansas

AR

California

CA

The top rate includes 1% mental health service tax surcharge.

Colorado

CO

Connecticut

CT

Delaware

DE

Florida

FL

Georgia

GA

Hawaii

HI

Idaho

ID

Illinois

IL

Indiana

IN

Iowa

IA

Kansas

KS

Kentucky

KY

Louisiana

LA

Maine

ME

Maryland

MD

Massachusetts

Michigan

MI

Minnesota

MN

Mississippi

MS

Missouri

MO

Montana

MT

Nebraska

NE

Nevada

NV

New Hampshire

NH

New Jersey

NJ

New Mexico

NM

New York

NY

New York City

NYC

North Carolina

NC

North Dakota

ND

Ohio

OH

Oklahoma

Oregon

OR

Pennsylvania

PA

Rhode Island

RI

South Carolina

SC

South Dakota

SD

Tennessee

TN

Texas

TX

Utah

UT

Vermont

VT

Virginia

VA

Washington

WA

West Virginia

WV

Wisconsin

WI

Wyoming

WY

Washington D.C.

DC

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