Taxes on Unemployment Benefits: A State-by-State Guide

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 $390 per $100,000 of assessed home value.

For more information, go to the Alabama State Tax Guide (opens in new tab).

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 $1,171 per $100,000 of assessed home value.

For more information, go to the Alaska State Tax Guide (opens in new tab).

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 $57,305 of taxable income for joint filers and up to $28,653 for single filers). High: 2.98% (on taxable income over $57,305 for joint filers and over $28,653 for single taxpayers).

Beginning in 2023, a flat rate of 2.5% applies.

Sales Tax: 5.6% state levy. Localities can add as much as 5.3% to that, but the average combined levy is 8.37%, according to the Tax Foundation.

Property Taxes: Arizona's median property tax rate is $508 per $100,000 of assessed home value.

For more information, go to the Arizona State Tax Guide (opens in new tab).

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 taxable income from $5,000 to $9,999 for taxpayers with net income of $84,500 or less, and on the first $4,300 of net income for taxpayers with net income over $84,500). High: 4.9% (on taxable income from $23,600 to $84,500 for taxpayers with net income of $84,500 or less, and on taxable income over $8,500 for taxpayers with net income over $84,500).

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 $572 per $100,000 of assessed home value.

For more information, go to the Arkansas State Tax Guide (opens in new tab).

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 $20,198 of taxable income for married joint filers and up to $10,099 for those filing individually). High: 13.3% (on more than $1,354,550 for married joint filers and $1 million for those filing individually).

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 $707 per $100,000 of assessed home value.

For more information, go to the California State Tax Guide (opens in new tab).

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 4.4% starting with the 2022 tax year. (It was lowered from 4.55% to 4.4% by Proposition 121, which was approved by voters on November 8, 2022.) The rate can also be lowered 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 $485 per $100,000 of assessed home value.

For more information, go to the Colorado State Tax Guide (opens in new tab).

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 $1,957 per $100,000 of assessed home value.

For more information, go to the Connecticut State Tax Guide (opens in new tab).

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 $533 per $100,000 of assessed home value.

For more information, go to the Delaware State Tax Guide (opens in new tab).

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 $552 per $100,000 of assessed home value.

For more information, go to the District of Columbia Tax Guide (opens in new tab).

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 $804 for every $100,000 of assessed home value.

For more information, go to the Florida State Tax Guide (opens in new tab).

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 5%, and the average combined rate is 7.37%, according to the Tax Foundation.

Property Taxes: Georgia's median property tax rate is $812 per $100,000 of assessed home value.

For more information, go to the Georgia State Tax Guide (opens in new tab).

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 $273 per $100,000 of assessed home value.

For more information, go to the Hawaii State Tax Guide (opens in new tab).

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 $3,324 for married joint filers and up to $1,662 for individual filers). High: 6% (on taxable income of $16,622 or more for married joint filers and $8,311 or more for individual filers).

Beginning in 2023, a flat rate of 5.8% on taxable income over $2,500 ($5,000 for joint filers) will apply. The threshold will be adjusted annually for inflation after 2023.

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 $492 per $100,000 of assessed home value.

For more information, go to the Idaho State Tax Guide (opens in new tab).

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 5.25%, and the average combined rate is 8.73%, according to the Tax Foundation.

Property Taxes: In Illinois, the median property tax rate is $2,073 per $100,000 of assessed home value.

For more information, go to the Illinois State Tax Guide (opens in new tab).

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 $752 per $100,000 of assessed home value.

For more information, go to the Indiana State Tax Guide (opens in new tab).

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 $1,501 per $100,000 of assessed home value.

For more information, go to the Iowa State Tax Guide (opens in new tab).

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 4.25%, and the average combined rate is 8.71%, according to the Tax Foundation.

Property Taxes: In Kansas, the median property tax rate for homeowners is $1,330 for every $100,000 of assessed home value.

For more information, go to the Kansas State Tax Guide (opens in new tab).

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 currently 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.

The state rate is reduced to 4.5% beginning in 2023. Further 0.5% reductions are possible in future years if certain revenue and budget 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 $797 per $100,000 of assessed home value.

For more information, go to the Kentucky State Tax Guide (opens in new tab).

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 $552 per $100,000 of assessed home value.

For more information, go to the Louisiana State Tax Guide (opens in new tab).

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 $1,093 for every $100,000 of assessed home value.

For more information, go to the Maine State Tax Guide (opens in new tab).

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 $987 per $100,000 of assessed home value.

For more information, go to the Maryland State Tax Guide (opens in new tab).

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.

Beginning in 2023, an additional 4% tax applies to taxable income over $1 million (the additional tax was approved by Massachusetts voters on November 8, 2022).

Sales Tax: State levy of 6.25%. There are no local sales taxes in Massachusetts.

Property Taxes: The Massachusetts median property tax rate is $1,115 for every $100,000 of assessed home value.

For more information, go to the Massachusetts State Tax Guide (opens in new tab).

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 $1,324 per $100,000 of assessed home value.

For more information, go to the Michigan State Tax Guide (opens in new tab).

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).

For 2023, the lowest rate applies to the first $30,070 of taxable income for single filers and the first $43,950 of taxable income for joint filers. The highest rate applies to taxable income over $183,340 for single filers and over $304,970 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 $1,021 per $100,000 of assessed home value.

For more information, go to the Minnesota State Tax Guide (opens in new tab).

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 $753 per $100,000 of assessed home value.

For more information, go to the Mississippi State Tax Guide (opens in new tab).

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 $112 to $1,121). High: 5.3% (on more than $8,968 of taxable income). Kansas City and St. Louis also impose an earnings tax.

Beginning in 2023, the top rate is reduced to 4.95% and the first $1,000 of income is exempt (adjusted for inflation after 2023). Starting in 2024, additional top rate reductions of 0.15% are possible if the net general revenue collected by the state exceeds a certain threshold. In addition, up to three more top rate reductions of 0.1% are possible if net general revenue exceeds a different threshold.

Sales Tax: 4.225% state levy. Localities can add as much as 5.763%, and the average combined rate is 8.3%, according to the Tax Foundation.

Property Taxes: For Missouri residents, the median property tax rate is $880 per $100,000 of assessed home value.

For more information, go to the Missouri State Tax Guide (opens in new tab).

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 $740 for every $100,000 of assessed home value.

For more information, go to the Montana State Tax Guide (opens in new tab).

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 $3,440 of taxable income for single filers and $6,860 for married couples filing jointly). High: 6.84% (on taxable income over $33,180 for single filers and $66,360 for married couples filing jointly).

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 $1,509 per $100,000 of assessed home value.

For more information, go to the Nebraska State Tax Guide (opens in new tab).

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 $484 per $100,000 of assessed home value.

For more information, go to the Nevada State Tax Guide (opens in new tab).

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 $1,766 for every $100,000 of assessed home value.

For more information, go to the New Hampshire State Tax Guide (opens in new tab).

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 $2,257 per $100,000 of assessed home value.

For more information, go to the New Jersey State Tax Guide (opens in new tab).

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% state levy (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 7.72%, 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 $728 for every $100,000 of assessed home value.

For more information, go to the New Mexico State Tax Guide (opens in new tab).

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 $1,620 per $100,000 of assessed home value.

For more information, go to the New York State Tax Guide (opens in new tab).

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 $704 per $100,000 of assessed home value.

For more information, go to the North Carolina State Tax Guide (opens in new tab).

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 $41,775 of taxable income for singles and up to $69,700 for married couples filing jointly). High: 2.9% (on taxable income over $458,350).

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 $939 per $100,000 of assessed home value.

For more information, go to the North Dakota State Tax Guide (opens in new tab).

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 $26,051 to $46,100). High: 3.99% (on taxable income over $115,300). Cities and school districts in Ohio can also impose local income taxes.

Sales Tax: 5.75% state levy. Localities can add as much as 2.25%, and the average combined rate is 7.24%, according to the Tax Foundation.

Property Taxes: The Ohio median property tax rate is $1,406 per $100,000 of assessed home value.

For more information, go to the Ohio State Tax Guide (opens in new tab).

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 8.99%, according to the Tax Foundation.

Property Taxes: In Oklahoma, the median property tax rate is $845 per $100,000 of assessed home value.

For more information, go to the Oklahoma State Tax Guide (opens in new tab).

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 $3,750 of taxable income for single filers and up to $7,500 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).

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 $823 per $100,000 of assessed home value.

For more information, go to the Oregon State Tax Guide (opens in new tab).

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 $1,358 for every $100,000 of assessed home value.

For more information, go to the Pennsylvania State Tax Guide (opens in new tab).

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).

For 2023, the 3.75% rate applies to the first $73,450 of taxable income, while the 5.99% rate applies to taxable income over $166,950.

Sales Tax: 7% state levy. No general local sales taxes.

Property Taxes: For homeowners in Rhode Island, the median property tax rate is $1,298 per $100,000 of assessed home value.

For more information, go to the Rhode Island State Tax Guide (opens in new tab).

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 $518 per $100,000 of assessed home value.

For more information, go to the South Carolina State Tax Guide (opens in new tab).

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 $1,078 per $100,000 of assessed home value.

For more information, go to the South Dakota State Tax Guide (opens in new tab).

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 $560 per $100,000 of assessed home value.

For more information, go to the Tennessee State Tax Guide (opens in new tab).

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 $1,599 per $100,000 of assessed home value.

For more information, go to the Texas State Tax Guide (opens in new tab).

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 $520 per $100,000 of assessed home value.

For more information, go to the Utah State Tax Guide (opens in new tab).

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 $42,150 of taxable income for singles and up to $70,450 for joint filers). High: 8.75% (on taxable income over for $213,150 for singles and up to $259,500 for joint filers).

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 $1,730 per $100,000 of assessed home value.

For more information, go to the Vermont State Tax Guide (opens in new tab).

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 $752 per $100,000 of assessed home value.

For more information, go to the Virginia State Tax Guide (opens in new tab).

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 the Washington Supreme Court has put the lower-court ruling on hold until it can address the matter.]

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 $836 for every $100,000 of assessed home value.

For more information, go to the Washington State Tax Guide (opens in new tab).

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 6.55%, according to the Tax Foundation.

Property Taxes: In West Virginia, the median property tax rate for homeowners is $548 for every $100,000 of assessed home value.

For more information, go to the West Virginia State Tax Guide (opens in new tab).

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 $12,760 of taxable income for singles or up to $17,010 for married couples). High: 7.65% (on taxable income over $280,950 for singles or over $374,600 for married couples).

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 $1,510 per $100,000 of assessed home value.

For more information, go to the Wisconsin State Tax Guide (opens in new tab).

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 5.36%, according to the Tax Foundation.

Property Taxes: In Wyoming, the median property tax rate is $545 per $100,000 of assessed home value.

For more information, go to the Wyoming State Tax Guide (opens in new tab).