State Tax Updates for 2023

See our list below for all state tax updates happening in the 2023 new year.

States in gray have no changes or updates reported. The list was last updated on 11/18/22.

Alaska

Hourly minimum wage
- $10.85
- Effective January 1, 2023
The weekly salary threshold for exempt executive, administrative, and professional employees
- $868.00
- Effective January 1, 2023

Arizona

State-wide
- Hourly minimum wage
  - $13.85
  - Effective January 1, 2023
- Tipped minimum wage
  - $10.85
  - Effective January 1, 2023
- Unemployment wage base
  - $8,000.00
Flagstaff
- Hourly minimum wage
  - $16.80
  - Effective January 1, 2023
- Tipped minimum wage
  - $14.80
  - Effective January 1, 2023
Tuscon
- Hourly minimum wage
  - $13.85
  - Effective Jan 1, 2023

California

State-wide
- Hourly minimum wage
  - $15.50
  - Effective January 1, 2023
- CalSavers
  - Expanded to cover more private-sector employees
  - Effective January 1, 2023
- California Family Rights Act
  - Expanded to include a designated person as family
- Withholdings
  - Updated for 2023
Belmont
- Hourly minimum wage
  - $16.75
  - Effective January 1, 2023
  - Learn more
Burlingame
- Hourly minimum wage
  - $16.47
  - Effective January 1, 2023
City of West Hollywood
- Hourly minimum wage for employers with 50+ employees
  - $17.50
  - Effective January 1, 2023
- Hourly minimum wage for employers with less than 50 employees
  - $17.00
  - Effective January 1, 2023
Cupertino
- Hourly minimum wage
  - $17.20
  - Effective January 1, 2023
Daly City
- Hourly minimum wage
  - $16.07
  - Effective January 1, 2023
  - Learn more
East Palo Alto
- Hourly minimum wage
  - $16.50
  - Effective January 1, 2023
El Cerrito
- Hourly minimum wage
  - $17.35
  - Effective January 1, 2023
Foster City
- Hourly minimum wage
  - $16.50
  - Effective January 1, 2023
Half Moon Bay
- Hourly minimum wage
  - $16.45
  - Effective January 1, 2023
Hayward
- Hourly minimum wage for employers with 26+ employees
  - $16.34
  - Effective January 1, 2023
- Hourly minimum wage for employers with 25 or less employees
  - $15.50
  - Effective January 1, 2023
Los Altos
- Hourly minimum wage
  - $16.45
  - Effective January 1, 2023
Menlo Park
- Hourly minimum wage
  - $16.20
  - Effective January 1, 2023
Mountain View
- Hourly minimum wage
  - $18.15
  - Effective January 1, 2023
Novato
- Hourly minimum wage for employers with 25 or less employees
  - $15.53
  - Effective January 1, 2023
- Hourly minimum wage for employers with 26-99 employees
  - $16.07
  - Effective January 1, 2023
- Hourly minimum wage for employers with 100+ employees
  - $16.32
  - Effective January 1, 2023
Palo Alto
- Hourly minimum wage
  - $17.25
  - Effective January 1, 2023
Petaluma
- Hourly minimum wage
  - $17.06
  - Effective January 1, 2023
San Carlos
- Hourly minimum wage
  - $16.32
  - Effective January 1, 2023
San Diego
- Hourly minimum wage
  - $16.30
  - Effective January 1, 2023
San Jose
- Hourly minimum wage
  - $17.00
  - Effective January 1, 2023
San Mateo
- Hourly minimum wage
  - $16.75
  - Effective January 1, 2023
Santa Clara
- Hourly minimum wage
  - $17.20
  - Effective January 1, 2023
Santa Rosa
- Hourly minimum wage
  - $17.06
  - Effective January 1, 2023
South San Francisco
- Hourly minimum wage
  - $16.70
  - Effective January 1, 2023
Sunnyvale
- Hourly minimum wage
  - $17.95
  - Effective January 1, 2023

Colorado

Hourly minimum wage
- $13.65
- Effective January 1, 2023
Tipped minimum wage
- $10.62* if employers use a $3.02 tip credit

Iowa

Unemployment-taxable wage base
- $36,100.00
- Effective January 1, 2023

Kentucky

Standard withholding deduction
- $2,980.00
- Effective January 1, 2023
State tax rate
- 4.5%
- Effective January 1, 2023
Union City
- Payroll tax
  - 2%
  - Effective January 1, 2023

Rhode Island

Hourly minimum wage
- $13.00
- Effective January 1, 2023

Maine

Minimum wage classification of service employees
- $175.00 a month
- Effective January 1, 2023
Treatment of vacation time upon the termination of employment
- Employers with 11+ employees will be required to pay out all accrued unused vacation time on termination of employment
- Effective January 1, 2023
Hourly minimum wage
- $13.80
- Effective January 1, 2023
Tipped minimum wage
- $6.90
- Effective January 1, 2023
Withholding
- Personal Exemption
  - $4,700.00
  - Effective January 1, 2023
- Standard deduction amount for single returns
  - $13,850.00
  - Effective January 1, 2023
- Standard deduction amount for married individuals filing joint returns
  - $27,700.00
  - Effective January 1, 2023
- Standard deduction amounts for 2023 are phased out for single taxpayers with Maine income over $91,500 and married taxpayers filing joint returns with Maine income over $183,050.

Maryland

Howard County
- Hourly minimum wage for employers
  - $15.00
  - Effective January 1, 2023
- Hourly minimum wage for small employers
  - $13.25
  - Effective January 1, 2023

Minnesota

Minneapolis
- Large business minimum wage
  - $15.19
  - Effective January 1, 2023

Missouri

Unemployment wage base
- $10,500.00
Income tax rates
- The top individual income tax rate will be 4.95%
- The lowest bracket has been eliminated

Montana

Hourly minimum wage
- $9.95
- Effective January 1, 2023
Withholding updated to account for inflation
Unemployment taxable wage base
- $40,500.00

Nevada

Unemployment-taxable wage base
- $40,100.00
- Effective January 1, 2023

New Hampshire

Voluntary Paid Family and Medical Leave
- Learn more in the New Hampshire State Tax Guide
- Effective January 1, 2023

New Jersey

Hourly minimum wage for employers with 6+ employees
- $14.13
- Effective January 1, 2023
Hourly minimum wage for employers with less than 6 employees
- $12.93
- Effective January 1, 2023

New Mexico

Las Cruces
- Minimum hourly wage
  - $12.00
  - Effective January 1, 2023
- Tipped minimum wage
  - $4.78
  - Effective January 1, 2023

New York

Paid Family Leave
- The definition of a family member has been expanded to include siblings (biological, adopted, half-sibling, or step-sibling).
  - Effective January 1, 2023
- The weekly wage base for insurance contributions will be the lesser of the employee’s total wages for the week or $1,688.19.
  - Effective January 1, 2023
- The maximum annual contribution will be $399.43 per employee.
  - Effective January 1, 2023
Unemployment wage base
- $12,300.00
Hourly minimum wage
- $14.20
- Effective January 1, 2023

Ohio

Hourly minimum wage
- $10.10
- Effective January 1, 2023
Tipped minimum wage
- $5.05
- Effective January 1, 2023

Oregon

Paid Family and Medical Leave
- Contributions begin on January 1, 2023
TriMet
- .008037%
- Effective January 1, 2023
Lane Transit Tax District (LTD)
- .0078%
- Effective January 1, 2023

South Dakota

Hourly minimum wage
- $10.80
- Effective January 1, 2023
Tipped minimum wage
- $5.40
- Effective January 1, 2023

Utah

Withholding
- Wages paid to nonresidents are exempt from income tax withholding for up to 20 days in a year if their state of residence has a similar exemption or does not have an income tax.
- Effective January 1, 2023

Vermont

Unemployment-taxable wage base
- $13,500.00
- Effective January 1, 2023
Hourly minimum wage
- $13.18
- Effective January 1, 2023
Tipped minimum wage
- $6.59
- Effective January 1, 2023

Washington

State-wide
- Paid Family and Medical Leave
  - Employers will pay 27.24% of the total premium
  - The wage base will be $160, 200.00
  - The total premium will be .08%
  - Effective January 1, 2023
Seattle
- Hourly minimum wage for large employers (501+ employees)
  - $18.69
  - Effective January 1, 2023
- Hourly minimum wage for small employers (500 or less employees)
  - $16.50 if employers pay at least $2.19 per hour toward employee medical benefits or employees earn the equivalent in tips
  - $18.69 if the employer does not pay toward medical benefits or the employee does not earn at least the equivalent in tips
  - Effective January 1, 2023
SeaTac
- Hourly minimum wage
  - $19.06
  - Effective January 1, 2023