State Income Tax Burdens Table 2

Table 1B:
State Income Tax Thresholds for Two-Parent Families of Four, 1996
Poverty Line = $16,021

Tax Imposed Below Poverty Line			No Tax Below Poverty Line
Rank	State	Threshold	Rank	State	Threshold
1.	Illinois	$4,000	25.	Iowa	16,400
1.	Indiana	4,000	26.	Wisconsin	16,700
3.	Alabama	4,600	27.	Colorado	16,900
4.	Kentucky	5,000	27.	District of Columbia	16,900
5.	Hawaii	6,100	27.	Idaho	16,900
6.	New Jersey	7,500	27.	Nebraska	16,900
7.	Virginia	8,200	27.	New Mexico	16,900
8.	Montana	8,600	27.	South Carolina	16,900
9.	Michigan	9,600	33.	North Carolina	17,000
10.	Missouri	10,000	34.	North Dakota	17,400
10.	West Virginia	10,000	35.	Arizona	20,000
12.	Arkansas	10,700	36.	Minnesota	20,900
13.	Georgia	11,100	37.	New York	21,600
14.	Oregon	11,400	38.	Maryland	22,300
15.	Ohio	11,500	39.	California	23,400
16.	Oklahoma	11,800	40.	Rhode Island	23,700
17.	Louisiana	12,300	40.	Vermont	23,700
18.	Delaware	12,500	42.	Connecticut	24,100
19.	Kansas	13,000
20.	Utah	14,400
21.	Maine	15,200
22.	Pennsylvania	15,300
23.	Massachusetts	15,500
24.	Mississippi	15,900

Average Threshold 1995		$10,342	Average Threshold 1995		$19,367
Amount Below Poverty 1995		5,679	Amount Above Poverty 1995		3,346

Note: Thresholds are the lowest income level at which a family has state income tax liability. In this table, they are rounded to the nearest $100. The 1996 poverty line was estimated by the Census Bureau in January 1997. The threshold calculations include state earned income credits, exemptions, and standard deductions. Other credits, such as property, sales, and dependent care credits, are not taken into account.
Source: Center on Budget and Policy Priorities

	State	Income	Tax
1.	Kentucky	$16,021	$545
2.	Hawaii	16,021	476
3.	Indiana	16,021	409
4.	Alabama	16,021	383
5.	Oregon	16,021	364
6.	Illinois	16,021	361
7.	Pennsylvania	16,021	359
8.	Michigan	16,021	283
9.	Virginia	16,021	261
10.	Arkansas	16,021	242
10.	West Virginia	16,021	242
12.	Montana	16,021	212
12.	Delaware	16,021	212
14.	Missouri	16,021	172
15.	Oklahoma	16,021	168
16.	New Jersey	16,021	154
17.	Georgia	16,021	112
18.	Kansas	16,021	106
19.	Ohio	16,021	102
20.	Louisiana	16,021	78
21.	Massachusetts	16,021	57
22.	Utah	16,021	44
23.	Maine	16,021	19
24.	Mississippi	16,021	4
25.	Arizona	16,021	0
25.	California	16,021	0
25.	Colorado	16,021	0
25.	Connecticut	16,021	0
25.	District of Columbia	16,021	0
25.	Idaho	16,021	0
25.	Iowa	16,021	0
25.	Maryland	16,021	0
25.	Nebraska	16,021	0
25.	New Mexico	16,021	0
25.	North Carolina	16,021	0
25.	North Dakota	16,021	0
25.	Rhode Island	16,021	0
25.	South Carolina	16,021	0
39.	Wisconsin	16,021	(59)
40.	Minnesota	16,021	(394)
41.	New York	16,021	(458)
42.	Vermont	16,021	(657)
* The income tax threshold for a two-parent family of four in Idaho was $13,600 in 1996, but there was a $10 permanent building fund tax on each filing household. Source: Center on Budget and Policy Priorities