by Alexander Long on May 7, 2019

State Income Taxes Updated for 2019 on TOTAL


2019 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 2019 state tax rates.  

Both our online and desktop versions of TOTAL include a feature allowing Money Tree to populate the tax information for all states in the program's settings.  In the State Tax Settings section of each program there are inputs to adjust the tax data for each state. The "Reset All State Tax Settings" will clear any custom or out-of-date state tax information and fill it with current information on record at Money Tree.

In Online edition of TOTAL there is the "Allow Money Tree to Update State Tax" checkbox. If that box is checked, then Money Tree will automatically update the state tax information once per year, shortly after the information is updated.

This year, Money Tree will update the state tax information for all electing users one week from the posting of this blog: Tuesday, May 14.

State Tax Foundation Resource: 
State Individual Income Tax Rates and Brackets for 2019


Jump to:

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 also includes a list of notable tax changes. The following are some of the major changes noted:

 2019Changes

Source: Katherine Loughead & Emma Wei, Tax Foundation - State Income Tax Rates and Brackets for 2019


The Tax Foundation's article also features a helpful graphic highlighting the top marginal tax rate per state.  The graphic is color coded. States with the highest marginal state tax rate are shaded darker.  California has the highest top marginal tax rate of 13.3%.

taxMap2019

Source: Katherine Loughead & Emma Wei, Tax Foundation - State Income Tax Rates and Brackets for 2019


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


Alabama

AL

Alaska

AK-1

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

MA

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 

OK

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

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

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Alexander Long

Alex is a Technical Support Specialist at Money Tree Software. He works with advisors on a daily basis, helping them navigate the software and providing tips and recommendations for a wide array of scenarios and models within the software.