What state has the highest individual income tax rate in the United States? No, it’s not California. Sorry, New York isn’t the place either. Oregon just misses out on the top spot.
And Hawaii is adding to the high taxation of high income individuals in the Aloha State. Forbes is reporting that Hawaii is limiting itemized deductions to $25,000 for individuals who earn over $100,000 ($50,000 for married residents who earn over $200,000). This limitation will be in effect from 2011 through 2015.
It may be time for some individuals to bid aloha to the Aloha State.