Complete Breakdown of Payroll Taxes by State - What's Coming Out of Your Paycheck?

I work as a payroll specialist and can help break this down. Employee-paid state payroll taxes fall into a few main categories across states: State income tax is the big one - 41 states plus DC impose this (rates vary widely based on income). Then there are the special state programs like CA's SDI (1.1% for 2025, up to the wage limit), NJ's temporary disability insurance, and WA's long-term care as you mentioned. The challenge with creating a simple table is that state income tax isn't a flat percentage - it varies by income level, filing status, and allowances claimed. Only a handful of states have flat-rate income taxes. For specialty taxes withheld from employees, here are some major ones: - California: SDI (1.1% in 2025) - New Jersey: Unemployment/Disability/Family Leave (combined ~1.1%) - New York: Disability/Paid Family Leave (~0.5% combined) - Massachusetts: Paid Family and Medical Leave (0.38%) - Washington: Paid Family Leave (0.4%) + Long-term care (0.58%) - Rhode Island: TDI/SDI (1.1%) - Hawaii: TDI (0.5%) Is there a specific reason you're looking for this information? There might be better resources depending on what you're using it for.

I've been using taxr.ai to help me figure out my multi-state tax situation and it's been a huge help with questions like this. I was working remotely between California and Nevada last year and was totally confused about which state taxes applied to me. The site has a document analyzer that breaks down exactly which state-specific deductions apply based on your residency situation and income level. Check out https://taxr.ai if you're dealing with any complicated state tax scenarios. They have state-specific calculators that show exactly what's coming out of your paycheck, and the difference between states was honestly shocking to me. You can upload pay stubs or W-2s and it tells you if you're having the right amount withheld too.

Just wanted to update everyone - I tried taxr.ai after posting my skeptical comment and it was actually really helpful! I uploaded my final California paycheck and discovered my employer had withheld California income tax for the entire month even though I had moved to Texas mid-month. The site generated a letter I could send to payroll showing exactly how the withholding should have been calculated based on my actual work location days. I also ran a comparison between staying in Texas versus potentially moving to Colorado, and it showed me I'd lose about 4.5% of my paycheck to state income tax in Colorado. The breakdown of all state-specific deductions was super clear and helped me decide to stay put for now. Definitely worth checking out if you're comparing states or have a multi-state situation.

After struggling to get through to my state tax agency for weeks about a withholding issue, I finally used Claimyr to connect with a real person at the tax department. If you're dealing with state payroll tax questions that need official answers, https://claimyr.com can get you through to a human at most state tax agencies without the typical 2+ hour wait times. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c In my case, I had moved from New York to Pennsylvania mid-year and my employer was still withholding NY taxes. Needed to find out exactly what forms to file to get it fixed and get a refund for the incorrect withholding. The service got me through to a NY tax rep in about 10 minutes when I had previously spent hours on hold.

I need to apologize for my skeptical comment. After waiting on hold with the California EDD for 3 hours yesterday (and eventually getting disconnected), I decided to try Claimyr as a last resort for my SDI question. I honestly expected it to be a waste of money, but they got me through to an EDD representative in about 15 minutes. The rep confirmed that my employer had been withholding SDI at an incorrect rate and helped me file for a refund of the excess withholding. I also learned that California has a wage base limit for SDI ($153,164 for 2025) and once you hit that, they should stop withholding - my employer hadn't been doing that either. So my skepticism was completely wrong, and I'm actually getting money back now. Sometimes it's worth paying for a service when the alternative is hours of frustration.

Here's my contribution to your state-by-state comparison. In Oregon, we have: - State income tax (ranges from 4.75% to 9.9% depending on income) - Transit taxes in some areas (TriMet in Portland area is 0.7967%, Lane County is 0.77%) - Statewide transit tax (0.1%) - Starting July 2025, we'll also have Oregon Paid Leave (1% of wages, shared between employer and employee) The transit taxes really sneaked up on me when I moved here. They don't sound like much but it adds up!

Don't forget about Colorado's new Paid Family and Medical Leave Insurance (FAMLI) program that started withholding in 2023. Employees pay 0.45% of wages (matched by most employers). This isn't on most state comparisons yet since it's relatively new. Also worth noting that some states with no income tax make up for it with higher property taxes (looking at you, Texas) or sales taxes. So while your paycheck might be bigger, your overall tax burden might not be that different depending on your spending and housing situation.

This is exactly the kind of information I've been looking for! I'm a tax preparer and constantly get questions from clients about state payroll taxes, especially those who work remotely or are considering relocating. One thing to add to your list: Connecticut has a 0.5% employee contribution for their Paid Family and Medical Leave program that started in 2022. Also, Vermont will be implementing a similar program in 2025 with employee contributions. For your table format, you might want to consider separating income tax from other payroll taxes since income tax rates are progressive in most states and depend on income level. Maybe something like: | State | Income Tax | Other Employee Payroll Taxes | |-------|------------|------------------------------| | California | Progressive 1-13.3% | SDI 1.1% | | Texas | None | None | | Washington | None | Paid Family Leave 0.4%, Long-term Care 0.58% | The challenge is that many of these specialty programs are brand new (last 5 years) and constantly changing rates, so any table would need frequent updates. But having this consolidated would be incredibly valuable for people making relocation decisions!

Thanks for starting this thread! As someone who recently went through a multi-state move, I can contribute some specific numbers for Minnesota and Wisconsin that might help your table. Minnesota employees pay: - Progressive state income tax (5.35% to 9.85% depending on income) - No additional state-specific payroll deductions currently Wisconsin employees pay: - Progressive state income tax (3.54% to 7.65% depending on income) - No additional state-specific payroll deductions currently What's interesting is that both states are currently considering paid family leave programs similar to what other states have implemented, so this could change in the next few years. One thing I'd suggest for your table is adding a "Last Updated" column since these programs are changing so frequently. Also, you might want to note whether the rates have wage caps - for example, California's SDI stops at $153,164 in wages for 2025, so high earners effectively pay a lower percentage. Are you planning to include local payroll taxes too? Some cities have their own income taxes that come out of paychecks (like NYC's 3.078-3.876% city income tax) which can be significant.

This is an incredibly valuable resource you're building! As a payroll administrator for a multi-state company, I deal with these variations daily and it's honestly one of the most confusing aspects of our system. A few additions to help complete your picture: **Delaware**: State income tax (2.2% to 6.6%) plus a small unemployment tax that employees pay in some circumstances **Maryland**: State income tax (2% to 5.75%) - but here's the kicker, most counties also have local income taxes ranging from 2.25% to 3.2% that come right out of paychecks **Illinois**: Flat 4.95% state income tax, no additional payroll deductions currently **Indiana**: Flat 3.23% state income tax, plus some counties have additional local income taxes What I find most challenging is that many employees don't realize these specialty programs often have maximum wage bases. So someone making $200k might actually have a lower effective rate on some of these taxes compared to someone making $50k, which can skew comparisons. For your table format, you might consider color-coding states by total potential payroll tax burden ranges (Low: 0-3%, Medium: 3-7%, High: 7%+) to make it easier for people to quickly identify their best options. The details matter, but sometimes people just need to know "is this state going to cost me significantly more or less than where I am now?" One warning though - make sure to note that this is employee-paid only, because I constantly get questions from people who find employer tax information and think that's coming out of their paycheck too!

This thread has been incredibly enlightening! I had no idea the state payroll tax landscape was this complex. I'm currently living in Georgia and considering a remote job opportunity that would let me relocate anywhere in the US. From what I'm gathering here, Georgia has a progressive state income tax (1% to 5.75%) with no additional state payroll deductions currently. But reading through all these responses, I'm realizing I need to factor in not just state income tax, but also these newer paid family leave programs, local taxes, and even property tax differences as some of you mentioned. The timing aspect is particularly interesting - it sounds like several states are in the process of implementing new programs that could change the calculations significantly. For someone planning a move in 2025-2026, should I be researching what's in the pipeline for different states, or just focus on current rates? Also, I'm curious about one thing that hasn't been mentioned much - are there any states that are moving in the opposite direction? Like eliminating or reducing payroll taxes? Or is the trend pretty much universally toward adding more programs and deductions? Thanks to everyone who has contributed specific numbers and insights - this is exactly the kind of real-world information that's impossible to find in a single resource anywhere else!

This is such a valuable discussion! I work in HR and constantly get questions about state tax differences from our remote employees. One thing I'd add that hasn't been mentioned yet is that some states have reciprocity agreements that can complicate the picture. For example, if you live in Pennsylvania but work in New Jersey (even remotely for a NJ-based company), you might not owe NJ income tax thanks to their reciprocity agreement. But the specialty payroll taxes like disability insurance don't always follow the same rules. Also, I wanted to highlight something for anyone considering Washington state - while they don't have state income tax, their long-term care tax (WA Cares) is pretty unique. You can opt out if you have private long-term care insurance, but you have to do it during specific enrollment periods and provide proof of coverage. Once you opt out, you can never opt back in, even if you lose your private coverage later. For the original poster's table, you might want to add a column for "Special Considerations" to capture things like opt-out provisions, reciprocity agreements, and wage caps. These details can significantly impact someone's actual tax burden beyond just the basic rates. Has anyone dealt with the complexities of changing state residency mid-year while working remotely? The apportionment rules can get pretty complicated depending on where your employer is based versus where you're physically working.

This has been such an enlightening thread! I'm a tax attorney who specializes in multi-state issues, and I wanted to add a few important clarifications and additional states to help complete your comprehensive list. **Additional State Payroll Taxes to Consider:** **Connecticut**: 0.5% Paid Family and Medical Leave (employee portion) **Rhode Island**: 1.2% Temporary Disability Insurance + 1.1% Temporary Caregiver Insurance **New York**: ~0.5% for Disability Benefits Law + Paid Family Leave combined **Massachusetts**: 0.68% Paid Family and Medical Leave (increased for 2025) **Critical Points Often Overlooked:** 1. **Multi-state workers**: If you work remotely for an out-of-state employer, you generally pay taxes based on where you physically perform the work, NOT where your employer is located. However, some states have "convenience rules" (like NY) that can override this. 2. **Partial year residents**: When you move mid-year, most states prorate based on the actual days of residency/work location, but the calculation methods vary significantly. 3. **Reciprocity limitations**: As Lucas mentioned, reciprocity agreements typically only apply to income taxes. Disability, family leave, and unemployment taxes usually follow the work location state regardless of reciprocity. For your table format, I'd strongly recommend separating this into two tables: one for income tax ranges and another for mandatory payroll programs with specific rates. The mixing of progressive income taxes with flat-rate specialty taxes makes comparison difficult. Also worth noting: several states are currently debating paid family leave legislation for 2025-2026 implementation, including Michigan, Ohio, and Iowa. The landscape is definitely shifting rapidly!