by Carolyn Rothwell on April 12, 2017

2017 State Income Taxes


2017 state tax income tax information is now available.  If you plan with TOTAL, Money Tree's in-depth financial planning software, it's standard practice to ensure the state tax rates are entered for all of the states your clients reside in and the rates are up-to-date each year. The Tax Foundation is an excellent resource for 2017 state tax rates.  

The online edition of TOTAL includes a feature allowing Money Tree to populate the tax information for all states in the program's settings.  For planners using the desktop edition, or anyone who would like to see the state tax updates, the 2017 state tax data entered in TOTAL Online is included in this post. 

State Tax Foundation Resource: 
State Individual Income Tax Rates and Brackets for 2017


Jump to:
2017 State Tax Changes   |  Top Tax Rates per State  |  Tax Rates Per State Entered in TOTAL Online

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  |  NC  |  ND  |  OH  |  OK  |  OR  |  PA  |  RI  |  SC  |  SD  |  TN  |  TX  |  UT  |  VT  |  VA  |  WA  |  WV  |  WI  |  WY


The Tax Foundation's article also includes a list of notable tax changes:  

NotableStateTaxChanges2017.png

 The twenty-four states listed below had tax changes in 2017.

*Using the 2016 tax rate.  
At the time of the 2017 state tax update, the 2016 tax rates were used for these states as the 2017 rates were not available. 


The Tax Foundation's article features a helpful graphic highlighting the top marginal tax rate per state.  The states with the highest marginal state tax rate are shaded in blue.  California has the highest top marginal tax rate of 13.3%, followed by Maine's 10.15% (a new 3% surcharge was added above the 7.15% bracket this year, surpassing Oregon for the second highest tax rate) and Oregon's 9.9%.

StateIncomeTaxMap2017.png


Tax Rates as Entered in TOTAL Online:

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

Many states offer 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. 

StateTaxAdjustments.png

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  |  NC  |  ND  |  OH  |  OK  |  OR  |  PA  |  RI  |  SC  |  SD  |  TN  |  TX  |  UT  |  VT  |  VA  |  WA  |  WV  |  WI  |  WY


Alabama

AlabamaStateTax2017.png

Alaska

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Arizona

ArizonaStateTax2017.png

Arkansas

ArkansasStateTax2017.png

California

CaliforniaStateTax2017.png
The top rate includes 1% mental health service tax surcharge. 

Colorado

ColoradoStateTax2017.png

Connecticut

ConnecticutStateTax2017.png

Delaware

DelawareStateTax2017.png

Florida

FloridaStateTax2017.png

Georgia

GeorgiaStateTax2017.png

Hawaii

HawaiiStateTax2017.png

Idaho

IdahoStateTax2017.png

Illinois

IllinoisStateTax2017.png

Indiana

IndianaStateTax2017.png

Iowa

IowaStateTax2017.png

Kansas

KansasStateTax2017.png

Kentucky

KentuckyStateTax2017.png

Louisiana

LouisianaStateTax2017.png

Maine

MaineStateTax2017.png

Maryland

MarylandStateTax2017.png

Massachusetts

MassachusettsStateTax2017.png

Michigan

MichiganStateTax2017.png

Minnesota

MinnesotaStateTax2017.png

Mississippi

MississippiStateTax2017.png

Missouri

MissouriStateTax2017.png

Montana

MontanaStateTax2017.png

Nebraska

NebraskaStateTax2017.png

Nevada

NevadaStateTax2017.png

New Hampshire

NewHampshireStateTax2017.png

New Jersey

NewJerseyStateTax2017.png

New Mexico

NewMexicoStateTax2017.png

New York

NewYorkStateTax2017.png

North Carolina

NorthCarolinaStateTax2017.png

North Dakota

NorthDakotaStateTax2017.png

Ohio

OhioStateTax2017.png

Oklahoma 

OklahomaStateTax2017.png

Oregon

OregonStateTax2017.png

Pennsylvania

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Rhode Island

RhodeIslandStateTax2017.png

South Carolina

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South Dakota

SouthDakotaStateTax2017.png

Tennessee

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Texas

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Utah

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Vermont

VermontStateTax2017.png

Virginia

VirginiaStateTax2017.png

Washington

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West Virginia

WestVirginiaStateTax2017.png

Wisconsin

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Wyoming

WyomingStateTax2017.png

Questions on entering state tax rates?  Please let us know by calling 877-421-9815 or emailing support@moneytree.com.

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Carolyn Rothwell

Carolyn enjoys spending her time building Money Tree Software's brand and products. Her experience creating and delivering financial plans for a full-service financial planning firm and supporting advisors working to provide the best planning to their clients as a Money Tree support member has provided an excellent understanding of the importance financial planning.