This tax rate could be reduced to 4%, but there are no guarantees. That’s because Kentucky imposes a flat income tax rate of 4.5% for 2023. Kentucky taxes unemployment benefits to the same extent as federal law, but you won’t have to guess your state tax rate. Taxpayers with income over $30,000 in income ($60,000 for joint filers) are subject to the 5.7% tax rate.The low tax bracket of 3.1% applies to single filers with income under $15,000 ($30,000 for joint filers).However, tax brackets in the state max out at 5.7%, which is low compared to many states. Unemployment benefits are subject to Kansas state income tax, but how much will you pay? That depends on how much money you make in 2023. The state will move to a 3.9% flat rate in 2026.Income tax rates in Iowa max out at 6% (on more than $75,000 of taxable income for single filers and more than $150,000 of taxable income for joint filers).Iowa taxes income up to $6,000 ($12,000 for joint filers) at a 4.4% tax rate.Even if your taxable income is low, you could be taxed at a 4.4% tax rate, which is high considering how low tax brackets are taxed in most states. Unemployment income is fully taxable in Iowa, so be prepared for a possible tax bill when you file your state tax return. Indiana residents may be able to deduct a portion of unemployment benefits from their taxable income.In 2022, Indiana imposed a flat tax rate of 3.23%.That rate is also lower than Indiana's tax rate last year. Indiana imposes a flat tax rate of 3.15%, which is much lower than in many states. Indiana taxes unemployment benefits, but residents are luckier than some.

Illinois’ flat tax rate of 4.95% creates a lower tax burden for people with higher incomes, but taxpayers with lower incomes may pay more tax in Illinois than in other states. However, taxpayers in Illinois pay nearly one percent less than Idaho residents. Unemployment benefits are taxed in Illinois, and it is another state with a flat tax rate. That’s good news if you’re a high-earner, but the flat tax rate means people with lower incomes may pay more than they would in other states. That’s because Idaho moved to a flat income tax rate of 5.8% for all taxable income over $2,500 ($5,000 for joint filers) in 2023. Idaho is another state that taxes unemployment benefits, and you’ll pay the same tax rate, regardless of your income. If your taxable income exceeds $200,000 ($400,000 for joint filers), you’re subject to an 11% tax rate.Income tax rates in Hawaii range from 7.6% to 10% for single filers with income between $24,001 and $200,000.The lowest bracket comes with a 1.4% tax rate, but most Hawaii residents will pay more. There are 12 income tax brackets in Hawaii. The state taxes unemployment benefits to the same extent as the federal government. Georgia may reduce the tax rate to 4.99% by 2029, but that will only happen if specified targets are met.Georgia will move to a 5.49% flat tax rate in 2024.That’s because this rate applies to filers with more than $7,000 of income ($10,000 for joint filers). Unemployment benefits are taxable in Georgia, and most filers will pay a 5.75% state income tax rate. Delaware taxes income greater than $60,000 at a 6.6% rate.If your taxable income is between $5,001 and $60,000, you could pay a tax rate up to 5.55%.You’re subject to a Delaware income tax rate of at least 2% if your taxable income is above $2,000.

Delaware unemployment taxĭelaware will tax your unemployment benefits, but how much will you pay? That depends on your yearly income. You’ll pay a flat 4.4% Colorado state income tax rate in 2023, regardless of your income level.

Taxpayers with net incomes over $84,500 may reach higher tax rates sooner than the brackets noted above.Ĭolorado will tax your unemployment as regular income, but there’s no need to worry about which tax bracket you fall into.

If your taxable income is more than $24,300, you’ll pay a 4.7% tax rate.

The tax rate is 2% for taxable income between $5,100 to $10,299.

That means how much tax you pay depends on which tax bracket you fall into.

The reduced tax rate went into effect one year earlier than planned.Īrkansas considers your unemployment benefits taxable income, but the state doesn’t have a flat income tax rate like Arizona does.

The previous income tax rate in Arizona was 2.98%.

However, there’s a good chance you’ll pay less income tax in Arizona this year since the state now imposes a flat 2.5% tax rate, regardless of how much you earn (or collect in unemployment). Arizona taxes on unemploymentĪrizona taxes unemployment benefits at the same rate regular income is taxed. Here’s how the states that do tax unemployment will tax your benefits in 2023. If you collect unemployment in any other state, you may find yourself with a bigger-than-expected tax bill when you file your state return.

Unemployment form for taxes