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The Tax Foundation recently ranked the states with most and least competitive individual income taxes in 2025.
Alaska, Florida, South Dakota, Tennessee, Texas and Wyoming have the most competitive individual income taxes, as they do not levy individual income tax at all. New York, with its complex tax system, is the least competitive.
Read more about the states with the most and least competitive individual income taxes in 2025.
10 least competitive states for individual income taxes in 2025
| 2025 rank | State | 2025 score | 2024 rank | 2023 rank | 2022 rank | 2021 rank | 2020 rank |
41
| Delaware
| 4.54 | 10 | 10 | 9 | 9 | 11 |
42
| Vermont
| 4.51 | 9 | 11 | 11 | 10 | 10 |
43
| Minnesota
| 4.35 | 7 | 7 | 8 | 8 | 7 |
44
| Maryland
| 3.81 | 6 | 6 | 6 | 6 | 6 |
| 45 | Hawaii
| 3.76 | 5 | 5 | 5 | 5 | 5 |
46
| Connecticut
| 3.44 | 4 | 4 | 4 | 4 | 4 |
47
| District of Columbia
| 3.50 | 3 | 3 | 5 | 5 | 5 |
| 48 | New Jersey
| 2.57 | 3 | 3 | 3 | 3 | 2 |
49
| California
| 2.37 | 2 | 2 | 2 | 1 | 1 |
50
| New York
| 2.11 | 1 | 1 | 1 | 2 | 3 |
In 2020-2024, the rank of Washington, D.C., does not affect the rank of the states.
10 most competitive states for individual income taxes in 2025
| 2025 rank | State | 2025 score | 2024 rank | 2023 rank | 2022 rank | 2021 rank | 2020 rank |
10
| Montana
| 5.92 | 22 | 20 | 21 | 21 | 22 |
9
| Utah
| 5.99 | 9 | 9 | 9 | 9 | 9 |
8
| Arizona
| 6.31 | 8 | 8 | 14 | 14 | 14 |
7
| Nevada
| 6.96 | 7 | 7 | 8 | 7 | 7 |
1 (tie)
| Alaska
| 10.00 | 1 | 1 | 1 | 1 | 1 |
1 (tie)
| Florida
| 10.00 | 1 | 1 | 1 | 1 | 1 |
1 (tie)
| South Dakota
| 10.00 | 1 | 1 | 1 | 1 | 1 |
1 (tie)
| Tennessee
| 10.00 | 1 | 1 | 1 | 8 | 8 |
1 (tie)
| Texas
| 10.00 | 1 | 1 | 1 | 1 | 1 |
1 (tie)
| Wyoming
| 10.00 | 1 | 1 | 1 | 1 | 1 |
