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:
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%.
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.
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
Alaska
Arizona
Arkansas
California
The top rate includes 1% mental health service tax surcharge.
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
