Taxes on Unemployment Benefits: A State-by-State Guide
Don't be surprised by an unexpected state tax bill on your unemployment benefits. Know where unemployment compensation is taxable and where it isn't.
If you recently lost your job, you probably have a lot of questions about unemployment benefits. How do I apply for them? How much will I get? How long will the benefits last? You'll need answers to these questions right away so that you can start receiving compensation and readjusting your finances. But once the payments start arriving, another question will likely spring to mind: Will I have to pay taxes on my unemployment benefits?
When it comes to federal income taxes, the general answer is yes. Uncle Sam taxes unemployment benefits as if they were wages. However, when it comes to state income taxes, it depends on where you live. Most states fully tax unemployment benefits. However, some states don't tax them at all (sometimes because the state doesn't have an income tax), and a handful of states will only tax part of your benefits.
Where does your state stand when it comes to taxing unemployment benefits? Read on to find out. Then, as a bonus, we outline each state's income, sales, and property tax levels — and provide a link to the state's page in our State-by-State Guide to Taxes on Middle-Class Families — so you can get a sense of the overall tax burden where you live.
Income tax brackets are for the 2022 tax year, unless otherwise noted. Average combined state and local sales tax values are for 2022 and were compiled by the Tax Foundation. Property tax data is from 2020 and is based on information from the U.S. Census Bureau.
Alabama Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Alabama doesn't tax unemployment benefits. In addition, the first $50,000 received from an employer as severance pay, unemployment compensation, and the like as a result of "administrative downsizing" is also not taxed.
State Income Tax Range: Low: 2% (on up to $1,000 of taxable income for married joint filers and up to $500 for all others). High: 5% (on more than $6,000 of taxable income for married joint filers and more than $3,000 for all others). Some Alabama municipalities also impose occupational taxes on salaries and wages.
Sales Tax: 4% state levy. Localities can add as much as 7.5% to that, and the average combined rate is 9.24%, according to the Tax Foundation.
Property Taxes: In Alabama, the median property tax rate is $406 per $100,000 of assessed home value.
For more information, go to the Alabama State Tax Guide for Middle-Class Families.
Alaska Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Alaska does not tax unemployment compensation.
State Income Tax Range: There is no state income tax.
Sales Tax: Alaska is one of five states with no state sales tax. However, localities can levy sales taxes, which can go as high as 7.5%. But, according to the Tax Foundation, the statewide average is only 1.76%.
Property Taxes: In Alaska, the median property tax rate is $1,212 per $100,000 of assessed home value.
For more information, go to the Alaska State Tax Guide for Middle-Class Families.
Arizona Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Arizona taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 2.55% (on up to $54,544 of taxable income for joint filers and up to $27,272 for single filers). High: 2.98% (on taxable income over $54,544 for joint filers and over $27,272 for single taxpayers).
Going forward, the rates will decrease to 2.53% and 2.75%, respectively, if certain state revenue amounts are reached. The state will then adopt a single flat rate of 2.5% if another state revenue amount is reached.
Sales Tax: 5.6% state levy. Localities can add as much as 5.6% to that, but the average combined levy is 8.4%, according to the Tax Foundation.
Property Taxes: Arizona's median property tax rate is $644 per $100,000 of assessed home value.
For more information, go to the Arizona State Tax Guide for Middle-Class Families.
Arkansas Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Arkansas taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 2% (on net income from $5,000 to $9,999 for people with net income of $84,500 or less and to the first $4,300 of net income for people with net income greater than $84,500). High: 5.5% (on net income from $39,700 to $84,500 for people with net income of $84,500 or less and to net income over $8,500 for people with net income greater than $84,500).
Beginning in 2023, the top rate is reduced to 5.3%. If no funds are transferred from the state's Catastrophic Reserve Fund by certain dates, the top rate will drop again to 5.1% for 2024 and to 4.9% for 2025 and thereafter.
Sales Tax: 6.5% state levy. Localities can add as much as 6.125%, and the average combined rate is 9.47%, according to the Tax Foundation.
Property Taxes: The median property tax rate for Arkansas homeowners is $620 per $100,000 of assessed home value.
For more information, go to the Arkansas State Tax Guide for Middle-Class Families.
California Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Californians don't have to pay state income taxes on unemployment benefits.
State Income Tax Range: Low: 1% (on up to $18,650 of taxable income for married joint filers and up to $9,325 for those filing individually). High: 13.3% (on more than $1,250,738 for married joint filers and $1 million for those filing individually). (Rates and amounts are for the 2021 tax year.)
Sales Tax: 7.25% state levy. Localities can add as much as 2.5%, and the average combined rate is 8.82%, according to the Tax Foundation.
Property Taxes: In California, the median property tax rate is $742 per $100,000 of assessed home value.
For more information, go to the California State Tax Guide for Middle-Class Families.
Colorado Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Colorado taxes unemployment compensation to the same extent that it's taxed under federal law.
Income Tax Range: Colorado has a flat income tax rate of 4.55% for the 2022 tax year (the rate can be raised later if there is a high fiscal year revenue growth rate). Denver and a few other cities in Colorado also impose a monthly payroll tax.
Sales Tax: 2.9% state levy. Localities can add as much as 8.3%, and the average combined rate is 7.77%, according to the Tax Foundation.
Property Taxes: In Colorado, the median property tax rate is $505 per $100,000 of assessed home value.
For more information, go to the Colorado State Tax Guide for Middle-Class Families.
Connecticut Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Connecticut taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 3% (on up to $20,000 of taxable income for married joint filers and up to $10,000 for those filing individually). High: 6.99% (on the amount over $1 million for married joint filers and over $500,000 for those filing individually).
Sales Tax: The state taxes most items at 6.35%, and localities are not allowed to add to that.
Property Taxes: The median property tax rate for Connecticut residents is $2,133 per $100,000 of assessed home value.
For more information, go to the Connecticut State Tax Guide for Middle-Class Families.
Delaware Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Delaware taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 2.2% (on taxable income from $2,001 to $5,000). High: 6.6% (on taxable income above $60,000). Wilmington also imposes a city tax on wages.
Sales Tax: Neither the state nor localities impose a sales tax.
Property Taxes: For Delaware homeowners, the median property tax rate is $568 per $100,000 of assessed home value.
For more information, go to the Delaware State Tax Guide for Middle-Class Families.
District of Columbia Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: The District of Columbia (Washington, D.C.) doesn't tax unemployment benefits.
State Income Tax Range: Low: 4% (on taxable income up to $10,000). High: 10.75% (on taxable income over $1 million).
Sales Tax: 6% city sales tax.
Property Taxes: In the District of Columbia, the median property tax rate is $575 per $100,000 of assessed home value.
For more information, go to the District of Columbia Tax Guide for Middle-Class Families.
Florida Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: There are no taxes on unemployment benefits in Florida.
State Income Tax Range: There is no state income tax.
Sales Tax: 6% state levy. Localities can add as much as 2%, and the average combined rate is 7.01%, according to the Tax Foundation.
Property Taxes: In Florida, the median property tax rate is $859 for every $100,000 of assessed home value.
For more information, go to the Florida State Tax Guide for Middle-Class Families.
Georgia Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Georgia taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 1% (on the first $1,000 of taxable net income for married couples filing jointly; on the first $750 for individual filers; and on the first $500 for married couples filing separately). High: 5.75% (on taxable income over $10,000 for married couples filing jointly; on taxable income over $7,000 for individual filers; and on taxable income over $5,000 for married couples filing separately).
Beginning in 2024, the state is switching to a flat rate of 5.49%. From 2025 to 2029, the rate will gradually be reduced to 4.99% if certain economic targets are met. If the economic targets are not met, the rate reduction schedule will be delayed.
Sales Tax: 4% state levy. Localities can add as much as 4.9%, and the average combined rate is 7.35%, according to the Tax Foundation.
Property Taxes: Georgia's median property tax rate is $907 per $100,000 of assessed home value.
For more information, go to the Georgia State Tax Guide for Middle-Class Families.
Hawaii Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Hawaii taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 1.4% (on taxable income up to $4,800 for married couples filing jointly; on up to $2,400 for married couples filing separately and individual filers). High: 11% (on taxable income over $400,000 for married couples filing jointly and surviving spouses; on over $200,000 for married couples filing separately and individual filers).
Sales Tax: 4% state levy. Localities can add as much as 0.5%, but the average combined rate is only 4.44%, according to the Tax Foundation.
Property Taxes: The median property tax rate in Hawaii is $281 per $100,000 of assessed home value.
For more information, go to the Hawaii State Tax Guide for Middle-Class Families.
Idaho Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Idaho taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 1% (on taxable income up to $3,176 for married joint filers and up to $1,588 for individual filers). High: 6.5% (on taxable income of $15,878 or more for married joint filers and $7,939 or more for individual filers). (Rates and amounts are for the 2021 tax year.)
Starting in 2022, the top rate is reduced to 6%.
Sales Tax: 6% state levy. Localities (typically resort communities) can add as much as 3%, but the average combined rate is just 6.02%, according to the Tax Foundation.
Property Taxes: In Idaho, the median property tax rate is $659 per $100,000 of assessed home value.
For more information, go to the Idaho State Tax Guide for Middle-Class Families.
Illinois Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Illinois taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: There is a flat rate of 4.95% of federal adjusted gross income after modifications and personal exemptions.
Sales Tax: 6.25% state levy. Localities can add as much as 4.75%, and the average combined rate is 8.81%, according to the Tax Foundation.
Property Taxes: In Illinois, the median property tax rate is $2,241 per $100,000 of assessed home value.
For more information, go to the Illinois State Tax Guide for Middle-Class Families.
Indiana Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Although unemployment benefits are taxable in Indiana, part of your benefits may be deductible. The deductible amount depends on your federal adjusted gross income, how much unemployment compensation you receive, and your filing status. Complete the "Unemployment Compensation Worksheet" in the Form IT-40 instruction booklet to calculate the exact amount of your deduction.
State Income Tax Range: The Hoosier State has a flat rate of 3.23% of state adjusted gross income after modifications. Counties also levy income taxes.
For 2023 and 2024, the state rate is reduced to 3.15%. If state revenues reach certain thresholds, the state rate will drop to 3.1% for 2025 and 2026, to either 3% or 3.1% for 2027 and 2028, and to either 2.9%, 3% or 3.1% after 2028.
Sales Tax: 7% state levy. No local taxes.
Property Taxes: The median property tax rate for Indiana homeowners is $833 per $100,000 of assessed home value.
For more information, go to the Indiana State Tax Guide for Middle-Class Families.
Iowa Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Unemployment benefits are fully taxable in Iowa.
State Income Tax Range: Low: 0.33% (on up to $1,743 of taxable income). High: 8.53% (on taxable income over $78,435). Alternative tax rates and computation methods are allowed for certain lower-income taxpayers. Iowa also has local income surtaxes used for schools and emergency medical services.
Beginning in 2023, the lowest Iowa personal income tax rate will be 4.4% (on up to $6,000 of taxable income for single filers and up to $12,000 of taxable income for joint filers), while the highest rate will be 6% (on more than $75,000 of taxable income for single filers and more than $150,000 of taxable income for joint filers). The top rate will drop to 5.7% in 2024 and then to 4.82% in 2025. Starting in 2026, a flat rate of 3.9% will apply.
Sales Tax: 6% state levy. Localities can add as much as 1%, and the average combined rate is 6.94%, according to the Tax Foundation.
Property Taxes: Iowa's median property tax rate is $1,561 per $100,000 of assessed home value.
For more information, go to the Iowa State Tax Guide for Middle-Class Families.
Kansas Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Kansas taxes unemployment benefits to the same extent they're taxed under federal law.
State Income Tax Range: Low: 3.1% (on taxable income from $2,501 to $15,000 for single filers and from $5,001 to $30,000 for joint filers). High: 5.7% (on more than $30,000 of taxable income for single filers and more than $60,000 for joint filers). Kansas also has an "intangibles tax" levied on unearned income by some localities.
Sales Tax: 6.5% state levy. Localities can add as much as 4%, and the average combined rate is 8.7%, according to the Tax Foundation.
Property Taxes: In Kansas, the median property tax rate for homeowners is $1,411 for every $100,000 of assessed home value.
For more information, go to the Kansas State Tax Guide for Middle-Class Families.
Kentucky Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Kentucky taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Kentucky has a flat income tax rate of 5%. Certain counties, cities and other local government entities (such as school boards) can levy an additional occupational license payroll tax on wages earned by employees working within their boundaries.
If certain revenue and budget conditions are met, the state rate will be reduced to 4.5% beginning in 2023. Further 0.5% reductions are possible in future years if the same conditions are met and the state legislature authorizes a reduction.
Sales Tax: State levy of 6%. There are no local sales taxes in Kentucky.
Property Taxes: The median property tax rate in Kentucky is $851 per $100,000 of assessed home value.
For more information, go to the Kentucky State Tax Guide for Middle-Class Families.
Louisiana Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Louisiana taxes unemployment benefits to the same extent as they're taxed under federal law.
State Income Tax Range: Low: 1.85% (on $12,500 or less of taxable income for individuals, $25,000 for joint filers). High: 4.25% (on more than $50,000 of taxable income; $100,000 for joint filers).
Each personal income tax rate will be reduced beginning April 1, 2024, and each April 1 thereafter through 2034, if the prior fiscal year's actual individual income tax collections exceed a certain amount.
Sales Tax: 4.45% state levy. Localities can add as much as 7%, and the average combined rate is 9.55%, according to the Tax Foundation.
Property Taxes: Louisiana's median property tax rate is $551 per $100,000 of assessed home value.
For more information, go to the Louisiana State Tax Guide for Middle-Class Families.
Maine Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Maine taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 5.8% (on taxable income less than $23,000 for single filers; less than $46,000 for joint filers). High: 7.15% (on taxable income of $54,450 or more for single filers; $108,900 for joint filers).
Sales Tax: 5.5% state levy. No local taxes.
Property Taxes: In Maine, the median property tax rate is $1,320 for every $100,000 of assessed home value.
For more information, go to the Maine State Tax Guide for Middle-Class Families.
Maryland Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Maryland taxes unemployment benefits to the same extent they're taxed at the federal level.
State Income Tax Range: Low: 2% (on less than $1,000 of taxable income). High: 5.75% (on more than $250,000 of taxable income for single filers; more than $300,000 for joint filers). Maryland counties and Baltimore City levy additional income taxes.
Sales Tax: State levy of 6%. There are no local sales taxes in Maryland.
Property Taxes: In Maryland, the median property tax rate for homeowners is $1,078 per $100,000 of assessed home value.
For more information, go to the Maryland State Tax Guide for Middle-Class Families.
Massachusetts Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Massachusetts taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Massachusetts has a flat rate of 5% for most classes of taxable income.
On November 8, 2022, Massachusetts voters will decide whether to add an additional 4% tax on taxable income over $1 million starting in 2023.
Sales Tax: State levy of 6.25%. There are no local sales taxes in Massachusetts.
Property Taxes: The Massachusetts median property tax rate is $1,213 for every $100,000 of assessed home value.
For more information, go to the Massachusetts State Tax Guide for Middle-Class Families.
Michigan Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Michigan taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Michigan has a flat tax rate of 4.25%. Cities can levy income taxes as well, on both residents and non-residents (who are taxed half the rate of residents).
Sales Tax: State levy of 6%. There are no local sales taxes in Michigan.
Property Taxes: In Michigan, the median property tax rate is $1,501 per $100,000 of assessed home value.
For more information, go to the Michigan State Tax Guide for Middle-Class Families.
Minnesota Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Minnesota taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 5.35% (on less than $28,080 of taxable income for single filers and on less than $41,050 for joint filers). High: 9.85% (on more than $171,220 of taxable income for single filers and on more than $284,810 for joint filers).
Sales Tax: 6.875% state levy. Localities can add as much as 2%, with an average combined rate of 7.49%, according to the Tax Foundation.
Property Taxes: The Minnesota median property tax rate is $1,106 per $100,000 of assessed home value.
For more information, go to the Minnesota State Tax Guide for Middle-Class Families.
Mississippi Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Mississippi taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 4% (on taxable income from $5,001 to $10,000). High: 5% (on taxable income over $10,000).
Starting in 2023, there is no tax on the first $10,000 of taxable income. The tax rate on taxable income above $10,000 will also be reduced to 4.7% in 2024, 4.4% in 2025, and 4% in 2026 and thereafter.
Sales Tax: 7% state levy. Only two localities, Jackson (1%) and Tupelo (0.25%) add to that. According to the Tax Foundation, that makes for an average combined rate of 7.07%.
Property Taxes: The median property tax rate for Mississippi homeowners is $795 per $100,000 of assessed home value.
For more information, go to the Mississippi State Tax Guide for Middle-Class Families.
Missouri Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Missouri taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 1.5% (on taxable income from $108 to $1,088). High: 5.4% (on more than $8,704 of taxable income). Kansas City and St. Louis also impose an earnings tax. (Rates and amounts are for the 2021 tax year.)
Missouri law calls for a 0.7% reduction in the top income tax rate over a period of years in 0.1% increments, but each rate cut is effective only if net general revenue collections hit a certain trigger amount. However, in 2024, the top rate will be reduced by 0.1% without regard to revenue collections.
Sales Tax: 4.225% state levy. Localities can add as much as 5.763%, and the average combined rate is 8.29%, according to the Tax Foundation.
Property Taxes: For Missouri residents, the median property tax rate is $959 per $100,000 of assessed home value.
For more information, go to the Missouri State Tax Guide for Middle-Class Families.
Montana Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Montana currently doesn't tax unemployment benefits. However, beginning in 2024, the exemption for unemployment compensation is repealed.
State Income Tax Range: Low: 1% (on up to $3,300 of taxable income). High: 6.75% (on taxable income over $19,800).
Beginning in 2024, there will be only two tax rates: 4.7% (on up to $20,500 of taxable income for single filers and $41,000 for married couples filing jointly) and 6.5% (on taxable income over $20,500 for single filers and $41,000 for married couples filing jointly).
Sales Tax: No state sales tax. Resort areas such as Big Sky, Red Lodge and West Yellowstone have local sales taxes.
Property Taxes: For homeowners in Montana, the median property tax rate is $827 for every $100,000 of assessed home value.
For more information, go to the Montana State Tax Guide for Middle-Class Families.
Nebraska Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Nebraska taxes unemployment compensation to the same extent that it's taxed under federal law
State Income Tax Range: Low: 2.46% (on up to $3,340 of taxable income for single filers and $6,660 for married couples filing jointly). High: 6.84% (on taxable income over $32,210 for single filers and $64,430 for married couples filing jointly). (Rates and amounts are for the 2021 tax year.)
Beginning in 2023, the top rate is gradually reduced according to the following schedule: 6.64% in 2023, 6.44% in 2024, 6.24% in 2025, 6% in 2026, and 5.84% in 2027 and thereafter.
Sales Tax: 5.5% state levy. Localities can add as much as 2.5%, and the average combined rate is 6.94%, according to the Tax Foundation.
Property Taxes: In Nebraska, the median property tax rate for homeowners is $1,684 per $100,000 of assessed home value.
For more information, go to the Nebraska State Tax Guide for Middle-Class Families.
Nevada Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: There are no taxes on unemployment benefits in Nevada.
State Income Tax Range: There is no state income tax.
Sales Tax: 6.85% state levy. Localities can add as much as 1.53%, and the average combined rate is 8.23%, according to the Tax Foundation.
Property Taxes: Nevada's median property tax rate is $572 per $100,000 of assessed home value.
For more information, go to the Nevada State Tax Guide for Middle-Class Families.
New Hampshire Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: There are no taxes in New Hampshire on unemployment benefits.
State Income Tax Range: New Hampshire doesn't have an income tax. However, currently there's a 5% tax on dividends and interest in excess of $2,400 for individuals ($4,800 for joint filers).
The tax on dividends and interest is being phased out. The rate will be 4% for 2023, 3% for 2024, 2% for 2025, and 1% for 2026. The tax will then be repealed on January 1, 2027.
Sales Tax: No sales tax.
Property Taxes: The median property tax rate in New Hampshire is $2,129 for every $100,000 of assessed home value.
For more information, go to the New Hampshire State Tax Guide for Middle-Class Families.
New Jersey Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: New Jersey does not tax unemployment compensation.
State Income Tax Range: Low: 1.4% (on up to $20,000 of taxable income). High: 10.75% (on taxable income over $1 million). Newark also imposes a payroll tax.
Sales Tax: 6.625% state levy. That rate is cut in half (3.3125%) for in-person sales in designated Urban Enterprise Zones located in disadvantaged areas. Salem County, which borders no-tax Delaware, also charges the reduced 3.3125% rate. As a result, the average rate in the state is 6.6%, according to the Tax Foundation.
Property Taxes: In New Jersey, the median property tax rate is $2,471 per $100,000 of assessed home value.
For more information, go to the New Jersey State Tax Guide for Middle-Class Families.
New Mexico Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: New Mexico taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 1.7% (on up to $5,500 of taxable income for single filers and $8,000 for joint filers). High: 5.9% (on taxable income over $210,000 for single filers and over $315,000 for married couples filing jointly).
Sales Tax: 5.125% state levy (5% effective July 1, 2022; 4.875% effective July 1, 2023, and then subject to reversion to 5.125% if tax revenues drop below a certain level). Localities can add as much as 4.313%, and the average combined rate is 7.84%, according to the Tax Foundation. New Mexico's tax is a gross receipts tax that covers most services.
Property Taxes: In New Mexico, the median property tax rate is $796 for every $100,000 of assessed home value.
For more information, go to the New Mexico State Tax Guide for Middle-Class Families.
New York Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: New York taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 4% (on up to $8,500 of taxable income for single filers and up to $17,150 for married couples filing jointly). High: 10.9% (on taxable income over $25 million).
Beginning in 2028, the highest rate will decrease to 8.82% on taxable income over $1,077,550 for single filers and over $2,155,350 for married couples filing jointly.
New York City and Yonkers impose their own income tax. A commuter tax is also imposed on residents of New York City, as well as on residents of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester Counties.
Sales Tax: 4% state levy. Localities can add as much as 4.875%, and the average combined rate is 8.52%, according to the Tax Foundation. In the New York City metro area, there is an additional 0.375% sales tax to support transit.
Property Taxes: New York's median property tax rate is $1,720 per $100,000 of assessed home value.
For more information, go to the New York State Tax Guide for Middle-Class Families.
North Carolina Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: North Carolina taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: North Carolina has a flat rate of 4.99% of state taxable income. However, the rate is decreased to 4.75% for 2023, 4.6% for 2024, 4.5% for 2025, 4.25% for 2026, and 3.99% for 2027 and thereafter.
Sales Tax: 4.75% state levy. Localities can add as much as 2.75%, and the average combined rate is 6.98%, according to the Tax Foundation.
Property Taxes: The median property tax rate in North Carolina is $818 per $100,000 of assessed home value.
For more information, go to the North Carolina State Tax Guide for Middle-Class Families.
North Dakota Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: North Dakota taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 1.1% (on up to $40,525 of taxable income for singles and up to $67,700 for married couples filing jointly). High: 2.9% (on taxable income over $445,000). (Rates and amounts are for the 2021 tax year.)
Sales Tax: 5% state levy. Localities can add as much as 3.5%, and the average combined rate is 6.96%, according to the Tax Foundation.
Property Taxes: North Dakota's median property tax rate is $989 per $100,000 of assessed home value.
For more information, go to the North Dakota State Tax Guide for Middle-Class Families.
Ohio Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Ohio taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 2.765% (on taxable income from $25,001 to $44,250). High: 3.99% (on taxable income over $110,650). Cities and school districts in Ohio can also impose local income taxes. (Rates and amounts are for the 2021 tax year.)
Sales Tax: 5.75% state levy. Localities can add as much as 2.25%, and the average combined rate is 7.22%, according to the Tax Foundation.
Property Taxes: The Ohio median property tax rate is $1,532 per $100,000 of assessed home value.
For more information, go to the Ohio State Tax Guide for Middle-Class Families.
Oklahoma Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Oklahoma taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 0.25% (on up to $1,000 of taxable income for single filers and up to $2,000 for married joint filers). High: 4.75% (on taxable income over $7,200 for single filers and over $12,200 for married joint filers).
Sales Tax: 4.5% state levy. Localities can add as much as 7%, and the average combined rate is 8.97%, according to the Tax Foundation.
Property Taxes: In Oklahoma, the median property tax rate is $892 per $100,000 of assessed home value.
For more information, go to the Oklahoma State Tax Guide for Middle-Class Families.
Oregon Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Oregon generally taxes unemployment compensation to the same extent that it's taxed under federal law. However, the state does not tax unemployment benefits received as a result of work performed in any federally recognized Indian reservation in Oregon or other land in the state that has been set aside as the home of tribal Indians under federal protection.
State Income Tax Range: Low: 4.75% (on up to $3,650 of taxable income for single filers and up to $7,300 for married couples filing jointly). High: 9.9% (on taxable income over $125,000 for single filers and over $250,000 for married couples filing jointly). (Rates and amounts are for the 2021 tax year.)
Counties and special districts can also impose local income taxes.
Sales Tax: No state or local sales tax.
Property Taxes: The median property tax rate for Oregon homeowners is $939 per $100,000 of assessed home value.
For more information, go to the Oregon State Tax Guide for Middle-Class Families.
Pennsylvania Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Unemployment compensation is not taxable for Pennsylvania income tax purposes.
State Income Tax Range: Pennsylvania has a flat rate of 3.07%. Municipalities and school districts can also impose taxes on wages or income.
Sales Tax: 6% state levy. Philadelphia has a local sales tax of an additional 2%, and Allegheny County (Pittsburgh's home county) adds a local sales tax of 1%. The combined average state and local rate is 6.34%, according to the Tax Foundation.
Property Taxes: In Pennsylvania, the median property tax rate is $1,556 for every $100,000 of assessed home value.
For more information, go to the Pennsylvania State Tax Guide for Middle-Class Families.
Rhode Island Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Rhode Island taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 3.75% (on up to $68,200 of taxable income). High: 5.99% (on taxable income over $155,050).
Sales Tax: 7% state levy. No general local sales taxes.
Property Taxes: For homeowners in Rhode Island, the median property tax rate is $1,571 per $100,000 of assessed home value.
For more information, go to the Rhode Island State Tax Guide for Middle-Class Families.
South Carolina Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: South Carolina taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 3% (on taxable income from $3,200 to $16,039). High: 6.5% (on taxable income over $16,039).
Beginning with the 2023 tax year, and each year thereafter until it equals 6%, the top rate will decrease by 0.1% if general fund revenues are projected to increase by at least 5% in the fiscal year that begins during the tax year.
Sales Tax: 6% state levy. Localities can add as much as 3%, and the average combined rate is 7.44%, according to the Tax Foundation.
Property Taxes: South Carolina's median property tax rate is $566 per $100,000 of assessed home value.
For more information, go to the South Carolina State Tax Guide for Middle-Class Families.
South Dakota Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: South Dakota does not tax unemployment benefits.
State Income Tax Range: There's no state income tax.
Sales Tax: 4.5% state levy. Localities can add as much as 4.5%, and the average combined rate is 6.4%, according to the Tax Foundation.
Property Taxes: The median property tax rate in South Dakota is $1,288 per $100,000 of assessed home value.
For more information, go to the South Dakota State Tax Guide for Middle-Class Families.
Tennessee Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: There is no tax on unemployment benefits in Tennessee.
State Income Tax Range: Tennessee has no state income tax.
Sales Tax: 7% state levy. There's also an additional state tax of 2.75% on sales of single items that applies to the portion of the sales price from $1,600 to $3,200. Localities can add up to 2.75%, with an average combined state and local rate of 9.547%, according to the Tax Foundation. Local taxes are limited, though: Only the first $1,600 of any single item is taxable.
Property Taxes: The median property tax rate for Tennessee homeowners is $685 per $100,000 of assessed home value.
For more information, go to the Tennessee State Tax Guide for Middle-Class Families.
Texas Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Texas does not tax unemployment benefits.
State Income Tax Range: Texas has no state income tax.
Sales Tax: 6.25% state levy. Localities can add up to 2%, with an average combined rate of 8.2%, according to the Tax Foundation.
Property Taxes: The median property tax rate in Texas is $1,753 per $100,000 of assessed home value.
For more information, go to the Texas State Tax Guide for Middle-Class Families.
Utah Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Utah taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Utah has a flat tax of 4.85%.
Sales Tax: State levy is 4.85%, but mandatory 1% local sales tax and 0.25% county option sales tax are added to the state tax (for a 6.1% total rate). Plus, localities can add up to an additional 2.95%, making the average combined state and local rate 7.19%, according to the Tax Foundation.
Property Taxes: In Utah, the median property tax rate is $602 per $100,000 of assessed home value.
For more information, go to the Utah State Tax Guide for Middle-Class Families.
Vermont Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Vermont taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 3.35% (on up to $40,950 of taxable income for singles and up to $68,400 for joint filers). High: 8.75% (on taxable income over for $206,950 for singles and up to $251,950 for joint filers). (Rates and amounts are for the 2021 tax year.)
Sales Tax: 6% state levy. Municipalities can add 1% to that, but the average combined state and local rate is 6.24%, according to the Tax Foundation.
Property Taxes: Vermont's median property tax rate is $1,902 per $100,000 of assessed home value.
For more information, go to the Vermont State Tax Guide for Middle-Class Families.
Virginia Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: There are no taxes on unemployment benefits in Virginia.
State Income Tax Range: Low: 2% (on up to $3,000 of taxable income). High: 5.75% (on taxable income over $17,000).
Sales Tax: 5.3% state levy, which includes a 1% tax allocated to local governments. Some local governments also impose additional taxes of up to 1.7%, making the average combined state and local rate 5.75%, according to the Tax Foundation.
Property Taxes: In Virginia, the median property tax rate is $815 per $100,000 of assessed home value.
For more information, go to the Virginia State Tax Guide for Middle-Class Families.
Washington Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Washington does not tax unemployment benefits.
State Income Tax Range: Washington has no state income tax. [Note that, beginning in 2022, Washington is scheduled to impose a 7% tax on the sale or exchange of certain long-term capital assets if the profits exceed $250,000 annually. However, the constitutionality of the capital gains tax is being challenged in the courts. A lower court has ruled the tax is unconstitutional, but an appeal is expected.]
Sales Tax: 6.5% state levy. Municipalities can add up to 4% to that, with the average combined rate at 9.29%, according to the Tax Foundation.
Property Taxes: The Washington median property tax rate is $958 for every $100,000 of assessed home value.
For more information, go to the Washington State Tax Guide for Middle-Class Families.
West Virginia Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: West Virginia taxes unemployment compensation to the same extent that it's taxed under federal law.
State Income Tax Range: Low: 3% (on up to $10,000 of taxable income). High: 6.5% (on taxable income of $60,000 or more). West Virginia municipalities can also impose city service fees on people working in the city.
Sales Tax: 6% state levy. Municipalities can add up to 1% to that, with an average combined rate of 6.52%, according to the Tax Foundation.
Property Taxes: In West Virginia, the median property tax rate for homeowners is $584 for every $100,000 of assessed home value.
For more information, go to the West Virginia State Tax Guide for Middle-Class Families.
Wisconsin Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: Wisconsin generally taxes unemployment benefits. However, a portion of your benefits may be exempt from tax. Complete the "Unemployment Compensation Worksheet" in the Schedule SB instructions to see if you can exclude any portion of your unemployment benefits from Wisconsin income taxes.
State Income Tax Range: Low: 3.54% (on up to $12,120 of taxable income for singles or up to $16,160 for married couples). High: 7.65% (on taxable income over $266,930 for singles or over $355,910 for married couples). (Rates and amounts are for the 2021 tax year.)
Sales Tax: 5% state levy. Municipalities can add up to 1.75% to that, with the average combined rate at 5.43%, according to the Tax Foundation.
Property Taxes: Wisconsin's median property tax rate is $1,781 per $100,000 of assessed home value.
For more information, go to the Wisconsin State Tax Guide for Middle-Class Families.
Wyoming Taxes on Unemployment Benefits
State Taxes on Unemployment Benefits: There are no taxes on unemployment benefits in Wyoming.
State Income Tax Range: Wyoming has no state income tax.
Sales Tax: 4% state levy. Municipalities can add up to 2% to that, with a combined rate of 5.22%, according to the Tax Foundation.
Property Taxes: In Wyoming, the median property tax rate is $605 per $100,000 of assessed home value.
For more information, go to the Wyoming State Tax Guide for Middle-Class Families.
