does not have an individual income tax. Arizona Personal income tax Reference: Corporate income tax The corporate income tax rate is 4.9%. Arkansas Scheduled Rate Reductions During a special session of the Arkansas Legislature in August, 2022, the top personal income tax rate was reduced to 4.9% retroactively effective to January 1, 2022, instead of 2025 as was originally planned while also marking the first time since 1971 that the top income tax rate has been 5.0% or lower. Arkansas experienced a budget surplus of nearly $1.5 Billion in the fiscal year ended June 30, 2022. California California taxes all capital gains as income. Personal income tax California's listed tax brackets from 1%-12.3% are indexed for inflation and were most recently by 2012 California Proposition 30. There state has a 1% Mental Health Services surtax (Form 540, line 62) for incomes above $1 million that creates the maximum bracket of 13.3%. California also separately imposes a state Alternative Minimum Tax (Form 540, line 52) at a 7% rate, so a taxpayer may end up paying both the AMT and the 1% surtax. Reference: Corporate income tax The standard corporate rate is 8.84%, except for banks and other financial institutions, whose rate is 10.84%. Colorado Colorado has a flat rate of 4.55% for both individuals and corporations. Connecticut Personal income tax Corporate income tax Connecticut's corporate income tax rate is 7.5%. Delaware Personal income tax Reference: Corporate income tax Delaware's corporate income tax rate is 8.7%. State individual income tax rates and brackets State corporate tax rates and brackets Other Nations Australia State governments have not imposed income taxes since World War II. Between 1915 and 1942, income taxes were levied by both State governments and the federal government. In 1942, to help fund World War II, the federal government took over the raising of all income tax, to the exclusion of the States. The loss of the states' ability to raise revenue by income taxation was offset by federal government grants to the states and, later, the devolution of the power to levy payroll taxes to the states in 1971. See also Income tax in the United States State tax levels in the United States Taxation in the United States U.S. State Non-resident Withholding Tax State Sales Tax Jock tax References External links Federation of Tax Administrators: State Tax Agencies Who Pays? (2009 edition) A Critique of Who Pays, 6th