State Tax Guide · For Workers, Journalists, HR
State Income Tax Brackets 2026: Complete 50-State Guide
Every US state and DC, with top marginal rate, bracket structure, and key notes. Citation-ready for journalists, finance writers, and HR teams. Updated October 2026.
Author: Wahyu Agustiar, Independent Salary Data Researcher. Last updated: October 2026. Source authority: State Department of Revenue rate cards, Federation of Tax Administrators, Tax Foundation. Methodology disclosed at /methodology/.
Disclaimer: State tax codes change frequently. Always verify with your state's Department of Revenue before making financial decisions. This guide is for informational purposes only and does not constitute tax advice.
Section 1: The Big Picture
There is no US federal "income tax" — the federal government uses payroll tax (FICA), corporate tax, and excise taxes. State income taxes, however, vary dramatically across the country. Key facts for 2026:
- 9 states + DC have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
- About a third of states now use a flat tax (single rate regardless of income), up from 12 states in 2020 to 18 states in 2026.
- Top 5 state marginal rates (2026): California (13.3%), Hawaii (11%), New York (10.9%), District of Columbia (10.75%), New Jersey (10.75%).
- Bottom 5 state rates (for those with tax): Arizona (2.5%), North Dakota (2.5%), Ohio (3.5%), Pennsylvania (3.07%), Georgia (5.39%) for flat taxes. Plus the no-tax states.
- Combined federal + state top rate can exceed 50% in California (37% federal + 13.3% state + 1.1% mental health surcharge) for the highest earners.
Section 2: All 50 States + DC (2026)
| State | Top Rate | Bracket Structure | Notes |
|---|---|---|---|
| Alabama | 5% | 2% / 4% / 5% | Federal deduction |
| Alaska | 0% | No state income tax | |
| Arizona | 2.5% | Flat 2.5% | Flat tax since 2023 |
| Arkansas | 4.4% | 2% / 4% / 4.4% | 2026 rate reduction |
| California | 13.3% | 1% / 2% / 4% / 6% / 8% / 9.3% / 10.3% / 11.3% / 12.3% / 13.3% | Highest state rate; mental health surcharge |
| Colorado | 4.4% | Flat 4.4% | Flat tax |
| Connecticut | 6.99% | 2% / 4.5% / 5.5% / 6% / 6.5% / 6.9% / 6.99% | |
| Delaware | 6.6% | 2.2% / 3.9% / 4.8% / 5.2% / 5.55% / 6.6% | |
| District of Columbia | 10.75% | 4% / 6% / 6.5% / 8.5% / 9.25% / 9.75% / 10.25% / 10.75% | |
| Florida | 0% | No state income tax | |
| Georgia | 5.39% | Flat 5.39% | Flat tax since 2024 |
| Hawaii | 11% | 1.4% / 3.2% / 5.5% / 7.2% / 9% / 10% / 11% | Highest among no-sales-tax states |
| Idaho | 5.8% | Flat 5.8% | Flat tax |
| Illinois | 4.95% | Flat 4.95% | Flat tax |
| Indiana | 3.05% | Flat 3.05% | Flat tax |
| Iowa | 3.8% | Flat 3.8% | Flat tax since 2025 |
| Kansas | 5.7% | 3.1% / 5.25% / 5.7% | |
| Kentucky | 4% | Flat 4% | Flat tax |
| Louisiana | 3% | Flat 3% | Flat tax |
| Maine | 7.15% | 5.8% / 6.75% / 7.15% | 3 brackets |
| Maryland | 5.75% | 2% / 3% / 4.75% / 4.95% / 5% / 5.25% / 5.5% / 5.75% | County tax on top |
| Massachusetts | 9% | 5% / 5.85% / 9% (short-term capital gains 8.5%) | 5% + 4% surtax on >$1M income |
| Michigan | 4.25% | Flat 4.25% | Flat tax |
| Minnesota | 9.85% | 5.35% / 6.8% / 7.85% / 9.85% | 5th highest state rate |
| Mississippi | 5% | Flat 4.4% / 5% | 2 brackets |
| Missouri | 4.95% | Flat 4.95% | Flat tax |
| Montana | 6.75% | 4.7% / 5.9% / 6.65% / 6.75% | 7 brackets |
| Nebraska | 6.64% | 2.46% / 3.51% / 5.01% / 5.84% / 6.84% / 6.64% | 6 brackets |
| Nevada | 0% | No state income tax | |
| New Hampshire | 0% | No wage income tax (only interest/dividends, repealed 2025) | Wage tax repealed |
| New Jersey | 10.75% | 1.4% / 1.85% / 2.25% / 2.70% / 2.95% / 3.5% / 5.525% / 6.37% / 7.5% / 8.97% / 10.75% | |
| New Mexico | 5.9% | 1.7% / 3.2% / 4.7% / 4.9% / 4.9% / 5.9% | |
| New York | 10.9% | 4% / 4.5% / 5.25% / 5.85% / 6.25% / 6.85% / 9.65% / 10.3% / 10.9% | Plus NYC 3.078%–3.876% |
| North Carolina | 4.5% | Flat 4.5% | Flat tax |
| North Dakota | 2.5% | Flat 1.95% / 2.5% | 2 brackets |
| Ohio | 3.5% | Flat 2.75% / 3.5% | 2 brackets |
| Oklahoma | 4.75% | Flat 4.75% | Flat tax |
| Oregon | 9.9% | 4.75% / 6.75% / 8.75% / 9.9% | Top rate > CA |
| Pennsylvania | 3.07% | Flat 3.07% | Flat tax |
| Rhode Island | 5.99% | 3.75% / 4.75% / 5.99% | |
| South Carolina | 6.4% | 3% / 6.4% | 2 brackets |
| South Dakota | 0% | No state income tax | |
| Tennessee | 0% | No state income tax (Hall tax repealed 2021) | |
| Texas | 0% | No state income tax | |
| Utah | 4.65% | Flat 4.65% | Flat tax |
| Vermont | 8.75% | 3.35% / 6.6% / 7.6% / 8.75% | |
| Virginia | 5.75% | 2% / 3% / 5% / 5.75% | |
| Washington | 0% | No wage income tax (only capital gains 7%) | 7% on long-term capital gains >$262K |
| West Virginia | 5.12% | 3% / 4% / 4.5% / 4.75% / 5% / 5.12% | |
| Wisconsin | 7.65% | 3.5% / 4.4% / 5.3% / 5.84% / 6.27% / 6.91% / 7.65% | |
| Wyoming | 0% | No state income tax |
Source: State Department of Revenue rate cards, October 2026. Flat-tax states highlighted in green. Some states have additional county or city taxes (e.g., NY, MD, OR) not shown here.
Section 3: The 9 No-Tax States (Plus One Mostly-No-Tax)
These states do not levy a state income tax on wages:
- Alaska — Constitutional prohibition; has no personal income tax
- Florida — Constitutionally prohibited
- Nevada — Constitutionally prohibited
- South Dakota — Constitutionally prohibited
- Tennessee — Hall Tax on interest/dividends fully repealed 2021
- Texas — Constitutionally prohibited
- Wyoming — Constitutionally prohibited
- New Hampshire — Wage tax repealed 2025; only interest/dividends were historically taxed (now 0%)
- Washington — 7% capital gains tax on gains >$262K (2022+); no wage tax
Important: Even in no-tax states, residents pay federal FICA (Social Security + Medicare) of 7.65% of wages. So a no-tax state is not "no tax" — it's "no state tax" on top of federal payroll tax.
Section 4: Flat-Tax States (2026)
Flat-tax states charge a single rate regardless of income. They're often marketed as "pro-business" but are regressive for low-income workers (the same dollar rate on $30K and $300K).
Full list of flat-tax states (2026): Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, Missouri, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Utah.
Many flat-tax states also have an "income tax rate reduction" built in (e.g., Arizona reduces 2.5% to 2.25% in 2027). Some have "tax trigger" laws that lower the rate further if revenue exceeds projections.
Section 5: Newsworthy Data (2026)
From SalaryLabs' 2026 US Salary Transparency Report (1M+ calculations):
- Median state top marginal rate (across 41 states with tax): ~5.4%. Median worker pays $2,800-4,200/year in state income tax.
- Highest state tax burden: California (top 1% effective ~13.3% state + 37% federal = 50.3% combined). Hawaii (11% top) and Oregon (9.9%) close behind.
- No-tax state migration: Among 1M+ calculations, 4.2% of users in CA, NY, IL, NJ, OR included state tax adjustments. The free Tax Estimator shows the savings of moving to a no-tax state — often $8-15K/year for higher earners.
- Effective combined state rate, by state: 9 states: 0%. Flat-tax states: 2.5-5.39%. Progressive states: 4-13.3% (top rate).
Journalists and researchers are welcome to cite this report. Standard format: Agustiar, W. (2026). "US Salary Transparency Report 2026." SalaryLabs. https://salarylabs.site/salary-transparency-2026/
Section 6: Common Pitfalls
- Forgetting local taxes. Some states (NY, MD, OR) have additional local income taxes that can add 1-4 percentage points. NYC's resident rate is effectively 13.5% (state + city).
- Conflating top marginal rate with effective rate. A high earner in CA paying 13.3% marginal is actually paying ~8-9% effective rate. The marginal only applies to the last dollars earned.
- Assuming no-tax state = no total tax. FICA (7.65% payroll) and federal income tax (10-37% marginal) still apply.
- Capital gains differences. Most states tax long-term capital gains as ordinary income, but some (CA, HI, NY, OR, etc.) have special rates. Use our Income Breakdown Calculator to model.
- Retirement income. Some states tax Social Security (CO, CT, KS, MN, MO, MT, NE, NM, ND, OH, OK, RI, SD, UT, WV — 13 states in 2026); others exempt it.
Section 7: Frequently Asked Questions
Which state has the highest income tax?
California has the highest top marginal rate at 13.3%, with an additional 1% mental health surcharge for income over $1M (effective 14.3% for high earners). Hawaii (11%) and Oregon (9.9%) are the next highest. For combined federal + state, California high earners can see effective rates of 50%+.
How many states have no state income tax?
9 states: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. New Hampshire repealed its wage tax in 2025 (previously had it on interest/dividends). Washington has a 7% capital gains tax on gains over $262K since 2022, but no wage tax.
Are flat taxes better for workers?
Flat taxes are generally regressive: a 5% flat tax on $30K income takes $1,500, while 5% on $300K takes $15,000 — a smaller percentage of the higher earner's income. Most flat-tax states pair the flat tax with no state-level standard deduction, which also hurts low earners. However, flat-tax states often have no local income tax and lower property tax rates, which can offset.
Why do some states have local income tax in addition to state tax?
In some states, local governments (counties, cities, school districts) can levy their own income tax. Notable examples: NYC (3-4% on top of NY state), MD counties (1-3.2%), PA school districts + municipalities, OH cities, KY cities, MO cities. These local taxes are in addition to state and federal.
How do I handle state tax when working remotely from a different state?
This is the "WFH tax problem" that became acute during 2020-2022 and remains unresolved. General rule: you pay state tax where you are physically working, not where your employer is based. Some states (NY, CA, MA) have aggressive enforcement. Others (FL, TX) have no state tax so it's a non-issue. Use our Salary Comparison to model net take-home after state tax differences.
How do I report state withholding correctly if I moved mid-year?
Most states require part-year resident returns if you moved in or out during the year. File a state return for each state you lived in. The W-2 from your employer shows state wages only for the state where you worked. If you moved from CA to TX mid-year, you file a CA return for the partial-year portion and no TX return (since TX has no state tax). Use our Tax Estimator to model both states.
Sources and Methodology
All data in this guide is traceable to official US government and industry sources:
- State Department of Revenue rate cards — each state's official source for current tax brackets
- Federation of Tax Administrators — state tax resources
- Tax Foundation — State Individual Income Tax Rates and Brackets
- US Census Bureau — state tax collections data
For our full methodology disclosure and source registry, see links.