In the United States, income tax rates vary considerably from state to state. Axios’ Alex Fitzpatrick examines state income tax rates in an article published on March 29, explaining why states with no income tax at all could be running into some major problems in the future.
Drawing on data from the Tax Foundation, Fitzpatrick notes that state income tax rates can be as high as 13.3 percent in California, 11 percent in Hawaii and 10.9 percent in New York State — while the lower state income tax rates include 2.5 percent in Arizona and North Dakota.
Florida and Texas, meanwhile, have no state income at all — although residents of those GOP-leaning states play plenty of other taxes, including property taxes and sales taxes.
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Fitzpatrick explains, “Some states with low or no individual income tax, like Texas and Florida, are attracting lots of new residents — but could find themselves in trouble in a world with less federal financial aid.”
To illustrate his point, Fitzpatrick links to an article he wrote for Axios earlier in March.
In that piece, Fitzpatrick cited Florida and Texas as examples of states that are very reliant on federal ahead — including aid from the Federal Emergency Management Agency (FEMA) and the U.S. Department of Housing and Urban Development (HUD).
Red states get a lot federal tax dollars for disaster relief, and southeastern Texas, like Florida, is quite vulnerable to hurricanes. A wide range of federal agencies, including FEMA and HUD, are being targeted for mass layoffs by the Trump Administration and the Department of Government Efficiency (DOGE), led by Donald Trump ally and SpaceX/Tesla/X.com leader Elon Musk.
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