State income taxes range from 0% to 13.3% depending on where you live. Nine states charge nothing; thirteen have flat rates; the rest use graduated brackets like the federal system. Your state significantly affects your total tax burden — and understanding it is essential, whether you’re filing taxes, comparing job offers, or planning a move.
States With No Income Tax
Nine states don’t tax your earned income at all:
| State | Income Tax | Sales Tax | Property Tax (Effective Rate) | Other Notable Taxes |
|---|---|---|---|---|
| Alaska | None | None (local only) | ~1.0% (confirm current rate) | Pays residents an annual Permanent Fund Dividend (amount varies by year — confirm current amount) |
| Florida | None | 6.0% | ~0.9% (confirm current rate) | No estate tax |
| Nevada | None | 6.85% | ~0.5% (confirm current rate) | Commerce tax on large businesses |
| New Hampshire | None | None | ~1.9% (highest in US — confirm current rate) | Former interest/dividends tax was fully repealed effective January 1, 2025 |
| South Dakota | None | 4.5% | ~1.1% (confirm current rate) | No corporate income tax |
| Tennessee | None | 7.0% | ~0.6% (confirm current rate) | High sales tax |
| Texas | None | 6.25% | ~1.6% (confirm current rate) | High property taxes |
| Washington | None | 6.5% | ~0.8% (confirm current rate) | 7% capital gains excise tax on gains above an inflation-adjusted threshold ($278,000 for 2025; confirm current 2026 threshold) |
| Wyoming | None | 4.0% | ~0.55% (confirm current rate) | Mineral severance taxes |
Important: No income tax ≠ low total tax. Texas has no income tax but has some of the highest property tax rates in the country. Florida has a 6% sales tax that adds up. Always compare total tax burden, not just income tax.
For detailed state guides: Florida Tax Guide | Tennessee Tax Guide | Texas Tax Guide | States With No Income Tax (Full Analysis)
State Income Tax Rates: All 50 States
Flat-Rate States
Thirteen states charge a single flat rate on all taxable income. Several of these states have cut rates for the 2026 tax year — confirm the current rate before relying on any figure below, as most of these states have multi-year phase-down schedules tied to revenue triggers:
| State | Flat Rate (2026) | Detailed Guide |
|---|---|---|
| Arizona | 2.5% | Arizona tax guide |
| Colorado | 4.4% | Colorado tax guide |
| Georgia | 4.99% (cut from 5.19% by HB 463, signed May 2026, retroactive to Jan. 1, 2026) | Georgia tax guide |
| Idaho | 5.3% (cut from 5.695% by HB 40) | — |
| Illinois | 4.95% | Illinois tax guide |
| Indiana | 2.95% (down from 3.05% in 2024, plus county income tax of 0.5%–3%) | Indiana tax guide |
| Iowa | 3.8% (flat-tax transition complete as of 2025) | Iowa tax guide |
| Kentucky | 3.5% (cut from 4.0% by HB 1, effective Jan. 1, 2026) | Kentucky tax guide |
| Michigan | 4.25% | Michigan tax guide |
| Mississippi | 4.0% on income above $10,000 (cut from 4.4%; phasing to 3% by 2030) | — |
| North Carolina | 3.99% (down from 4.25% in 2025) | North Carolina tax guide |
| Pennsylvania | 3.07% | Pennsylvania tax guide |
| Utah | 4.45% (cut from 4.5% by SB 60, signed March 2026) | Utah tax guide |
Flat-rate states are the simplest to calculate: multiply your state taxable income by the rate.
Graduated-Rate States
The remaining states use graduated brackets similar to the federal system. Here are the highest marginal rates for 2026:
| State | Top Rate | Kicks In At | Brackets | Detailed Guide |
|---|---|---|---|---|
| California | 13.3% | $1,000,000+ | 9 | California tax guide |
| Hawaii | 11.0% | confirm current threshold (sources cite figures from $200,000 to $325,000 single) | 12 | Hawaii tax guide |
| New York | 10.9% | $25,000,000+ | 8 | New York tax guide |
| New Jersey | 10.75% | $1,000,000+ | 7 | New Jersey tax guide |
| Oregon | 9.9% | $125,000+ (confirm current inflation-adjusted threshold) | 4 | Oregon tax guide |
| Minnesota | 9.85% | $203,150+ (single) / $337,930+ (MFJ) | 4 | Minnesota tax guide |
| Massachusetts | 9.0% (5% flat + 4% surtax) | $1,107,750+ (surtax, indexed for inflation) | 1+surtax | Massachusetts tax guide |
| Connecticut | 6.99% | $500,000+ (confirm current threshold) | 7 | Connecticut tax guide |
| Wisconsin | 7.65% | confirm current inflation-adjusted threshold (last confirmed near $315,000+) | 4 | Wisconsin tax guide |
| Maryland | 5.75% | $250,000+ (+ local) | 8 | Maryland tax guide |
See the full comparison: State Income Tax Rates (All 50 States) | State Income Tax Brackets
More state guides
| State | Guide |
|---|---|
| Alabama | Alabama tax guide |
| Arkansas | Arkansas tax guide |
| Kansas | Kansas tax guide |
| Louisiana | Louisiana tax guide |
| Missouri | Missouri tax guide |
| New Mexico | New Mexico tax guide |
| Ohio | Ohio tax guide |
| Oklahoma | Oklahoma tax guide |
| South Carolina | South Carolina tax guide |
| Virginia | Virginia tax guide |
| Washington State | Washington state tax guide |
Highest and Lowest Tax States Compared
Highest effective state income tax burden
| State | Top Rate | Why So High |
|---|---|---|
| California | 13.3% | Aggressive progressive brackets |
| New York | 10.9% | NYC adds a separate local income tax on top |
| New Jersey | 10.75% | High rates start at moderate income |
| Oregon | 9.9% | No sales tax; income tax compensates |
| Minnesota | 9.85% | High rates, broad base |
Median income tax paid figures were removed from this table because they could not be independently verified this session; see each state’s dedicated guide for current effective-rate examples.
Lowest total state tax burden
| State | Income Tax | Sales Tax | Why Low |
|---|---|---|---|
| Wyoming | 0% | 4.0% | Resource revenue |
| Alaska | 0% | 0% (state level) | Oil revenue + Permanent Fund |
| Nevada | 0% | 6.85% | Tourism/gaming revenue |
| Florida | 0% | 6.0% | Tourism + population growth |
| South Dakota | 0% | 4.5% | Low spending |
State Taxes on Retirement Income
Tax treatment of retirement income varies dramatically by state:
| Category | States | Details |
|---|---|---|
| No income tax at all | AK, FL, NV, NH, SD, TN, TX, WA, WY | No retirement income tax either |
| Exempt all retirement income | IL, IA, MS, PA | Don’t tax 401(k)/IRA/pension distributions (Iowa fully exempted retirement income starting 2023) |
| Exempt Social Security only | Most remaining states | Tax 401(k)/IRA, exempt SS |
| Tax Social Security | A handful of states, including CO, CT, MN, MT, NM, RI, UT, VT, WV (confirm current list — several states have dropped Social Security taxation in recent years) | Partial exemptions vary widely |
| Tax everything | CA, OR, NJ, NY, MA (mostly) | Full taxation at regular rates |
Where you retire matters enormously. A $60,000/year pension may be tax-free in Illinois but could face a 9.9% rate in Oregon. Factor state taxes into your Retirement Planning Guide early.
See: Best States to Retire for Taxes | Best States for Retirees
Other State Taxes That Affect Your Bottom Line
Income tax is just one piece. Here’s the full picture:
| Tax Type | Range | Key Data | Learn More |
|---|---|---|---|
| Sales tax | 0%–7.25% (state) + local | 5 states have no state-level sales tax (AK, DE, MT, NH, OR) | Sales Tax by State |
| Property tax | Varies widely by county | Biggest cost for homeowners; varies by county | Property Tax by State |
| Capital gains tax | Same as income tax in most states | WA has a separate 7% capital gains excise tax on gains above an inflation-adjusted threshold ($278,000 for 2025) | Capital Gains Tax by State |
| Estate/inheritance tax | 12 states + DC have estate tax; several states have inheritance tax (confirm current count) | Federal exemption: $15,000,000 per individual for 2026 (made permanent by OBBBA) | Estate Tax by State |
State Tax Filing Deadlines
Most states follow the federal April 15 deadline, but several differ:
| State | Filing Deadline | Note |
|---|---|---|
| Most states | April 15 | Same as federal |
| Virginia | May 1 | Historically later |
| Louisiana | May 15 | Extended deadline |
| Iowa | April 30 | Later than federal |
| Hawaii | April 20 | Slightly later |
| Delaware | April 30 | Later than federal |
If you file a federal extension (Form 4868), most states automatically extend your state deadline too — but not all. Check your state’s rules.
See State Tax Deadlines for the complete list.
The SALT Deduction
The State and Local Tax (SALT) deduction lets you deduct state/local taxes on your federal return. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, significantly raised this cap starting with the 2025 tax year:
| SALT Deduction | Amount |
|---|---|
| Cap for 2025 | $40,000 |
| Cap for 2026 | $40,400 (cap increases ~1% per year through 2029) |
| Phase-out begins | Modified AGI above $505,000 (2026); $252,500 for married filing separately |
| Phase-out mechanism | Deduction is reduced by 30% of MAGI over the threshold, floored at $10,000 |
| Reverts to $10,000 cap | Tax year 2030 |
Impact: The higher cap benefits most itemizing homeowners in high-tax states, but very high earners (roughly $600,000+ MAGI) are phased back down to the old $10,000 cap. Confirm your specific phase-out amount with a tax professional if your income is near these thresholds, since the calculation involves MAGI, not just AGI.
Quick Reference Table
| Topic | Key Number | Learn More |
|---|---|---|
| No income tax states | 9 states | States with no income tax |
| Highest state rate | 13.3% (California) | California tax guide |
| Lowest flat rate | 2.5% (Arizona) | Arizona tax guide |
| SALT deduction cap (2026) | $40,400 (phases down above $505,000 MAGI) | Tax filing guide |
| Federal estate tax exemption (2026) | $15,000,000 per individual | Estate Tax by State |
| Standard state deadline | April 15 | State tax deadlines |
The Bottom Line
Your state tax rate matters, but never look at income tax in isolation. A state with 0% income tax may charge high property or sales taxes that offset the savings. When comparing states for a move or evaluating a job offer, calculate your total tax burden — federal income tax + state income tax + sales tax on typical spending + property tax on your target home. The “cheapest” state for you depends on your income level, spending habits, homeownership status, and retirement plans.
State Tax Planning: Multi-State and Remote Workers
Multi-State Workers
If you work remotely across multiple states or had income from multiple sources:
- Your state of domicile (where you have primary residence and intent to return) is your resident state.
- Income earned in another state may owe that state’s tax, with a credit from your home state.
Most states provide a credit for taxes paid to other states, but the mechanics differ. Do not assume you are protected from double taxation without checking both states’ reciprocity agreements.
Remote Workers
Working remotely for an out-of-state employer can trigger tax obligations in your home state even if your employer withholds for their state. Some states have “convenience of the employer” rules. Verify your state combination.
Part-Year Residents
Moving mid-year requires income allocation between states. Most states use a prorated share based on days or wages earned in each state.
Domicile vs. Residency: Why the Difference Matters
Domicile is where you intend to make your permanent home. Residency is where you physically live.
Some people are statutory residents in a state (present 183 days+) but domiciled elsewhere. When a state treats you as both a domiciliary and a statutory resident, you can face double taxation with limited relief.
If you split time between two states, document your primary location with objective evidence: voter registration, driver’s license, primary physician, tax filings, and property valuations.
State Tax and Investment Income
| Income Type | Common State Treatment |
|---|---|
| Qualified dividends | Taxed as ordinary income in most states |
| Long-term capital gains | Taxed at ordinary income rate in most states |
| Muni bond interest | Exempt in issuing state; taxable in others |
| Federal bond interest | Often exempt at state level |
High-investment-income households in high-rate states benefit from municipal bonds, tax-deferred accounts, and tax-managed funds.
Year-End State Tax Moves
Actions that can lower state tax before December 31:
- Accelerate deductions into current year in high-deduction-value states.
- Harvest capital losses to offset any state-level capital gains treatment.
- Max 529 contributions if your state offers a deduction for in-state plans.
- Review any employer stock or bonus timing if near a bracket boundary.
High-Income State Tax Strategy Checklist
- Know your effective state marginal rate on next dollar of income.
- Check whether your state taxes retirement distributions and Social Security.
- Review capital gains treatment (many states add gains to ordinary income fully).
- Evaluate relocation economics if state rate is above 7% and life allows flexibility.
- If you moved mid-year, confirm domicile status was properly established.
- For remote workers: verify employer withholding state matches your home state.
Scenario Planning
Scenario A: High earner considering California → Texas move A high six-figure or seven-figure income earner in CA can save substantially by moving to TX, since CA’s top rate reaches 13.3% and TX has no income tax. Weigh the savings against property taxes, home price differences, family, and career impact rather than assuming a specific dollar figure without running your own numbers.
Scenario B: Remote worker moves from NY to FL for employer in NY New York’s convenience of the employer doctrine may still require NY tax filing. NY residency establishment must be clean.
Scenario C: Retiree comparing a state that taxes Social Security vs. a no-tax state A retiree with substantial Social Security and pension income can meaningfully reduce state tax liability by relocating to a state that exempts retirement income — but confirm your target state’s current retirement-income rules first, since several states have dropped Social Security taxation in recent years.
State Taxes Cluster: All Related Articles
- State Income Tax Rates (All 50 States)
- State Income Tax Brackets
- States With No Income Tax
- Remote Work Tax Guide
- State Tax Deadlines
- Sales Tax by State
- Property Tax by State
- Capital Gains Tax by State
- Estate Tax by State
- Best States to Retire for Taxes
- Average Tax Refund by State
State-specific guides
- California Income Tax Guide
- New York Income Tax Guide
- Texas Tax Guide
- Florida Tax Guide
- New Jersey Income Tax Guide
- Washington State Tax Guide
- Texas Property Tax Guide
Related tax hubs
See parent hub: Taxes
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