State Policies to Promote Marriage. Table 6: State Tax Policies


State State EITC by Percent of Fed. Credit and whether Refundable (2000) a/ Tax Threshold (2000) for Married 2-parent family of 4 c/ Tax Threshold (2000) 1-parent family of 3 c/ State Policies to Address Marriage Penalty d/
Alabama   $4,600 $4,600 Joint rate schedule e/
Alaska   N/A N/A N/A—no income tax
Arizona   $23,600 $20,100 Joint rate schedule e/
Arkansas   $15,600 $13,000 Can file separately f/
California   $36,800 $35,000 Joint rate schedule e/
Colorado 10%-R $27,900 $24,400 Joint rate schedule
Connecticut   $24,100 $19,100 N/A-flat tax
Delaware   $20,300 $14,700 Can file separately f/
District of Columbia 10%-R $18,600 $14,900 Can file separately f/
Florida   N/A N/A N/A—no income tax
Georgia   $15,300 $12,100 May face penalty
Hawaii   $11,000 $9,200 Joint rate schedule e/
Idaho   $20,100 $14,900 Joint rate schedule e/
Illinois 5%- NR $14,000 $12,500 N/A-flat tax
Indiana   $9,500 $9,000 N/A-flat tax
Iowa 6.5%- NR $17,400 $17,400 Can file separately f/
Kansas 10%-R $21,100 $20,200 May face penalty
Kentucky   $5,400 $5,000 Can file separately f/
Louisiana   $13,000 $11,000 Joint rate schedule e/
Maine 5%- NR $23,100 $20,600 Joint rate schedule
Maryland 10% -R or 50%-NR $25,200 $24,600 May face penalty
Massachusetts 10%-R $20,600 $19,000 N/A-flat tax
Michigan   $12,800 $9,900 N/A-flat tax
Minnesota ~29%- R b/ $26,800 $25,600 Joint rate schedule
Mississippi   $19,600 $14,400 Can file separately f/
Missouri   $14,100 $12,500 Can file separately f/
Montana   $9,500 $7,800 Can file separately f/
Nebraska   $18,900 $15,400 Joint rate schedule
Nevada   N/A N/A N/A—no income tax
New Hampshire   N/A N/A N/A—no income tax
New Jersey 10%- R (Inc <20K) $20,000 $20,000 May face penalty
New Mexico   $21,000 $18,000 May face penalty
New York 22.5%- R $23,800 $22,600 Joint rate schedule
North Carolina   $17,000 $13,900 Joint rate schedule
North Dakota   $19,000 $15,300 May face penalty g/
Ohio   $12,700 $10,200 May face penalty
Oklahoma   $13,000 $9,300 May face penalty
Oregon 5%- NR $14,800 $12,700 Joint rate schedule e/
Pennsylvania   $28,000 $21,500 N/A-flat tax
Rhode Island 26%- NR $25,900 $24,400 May face penalty g/
South Carolina   $21,400 $17,700 May face penalty
South Dakota   N/A N/A N/A—no income tax
Tennessee   N/A N/A N/A—no income tax
Texas   N/A N/A N/A—no income tax
Utah   $15,800 $12,800 Joint rate schedule e/
Vermont 32%- R $26,800 $25,500 May face penalty g/
Virginia   $17,100 $14,200 Can file separately f/
Washington   N/A N/A N/A—no income tax
West Virginia   $10,000 $10,000 May face penalty
Wisconsin 4%-43% (1-3 children)- R $20,700 $17,700 Joint rate schedule
Wyoming   N/A N/A N/A—no income tax
a/ Source:
b/ Source: Most states with EITCs (except MN) give a percent of the federal credit, so if a family is eligible for the federal EITC it is generally eligible for the state one. Minnesota's refund amount varies by earnings.
c/ Income at which families begin paying taxes; Source:
d/ Source:
e/ States fully eliminate marriage penalty by allowing married couples to use rate brackets twice as wide as those available to single filers.
f/ Couples may face a penalty if they choose to file jointly when permitted to file separately.
g/ States levy a state tax as a percentage of the federal tax and thus impose a penalty proportional to the penalty at the federal level.