Note: Several states cut income tax rates for 2026 (Arkansas, Georgia, Idaho, Indiana, Kentucky, Mississippi, North Carolina, Utah). The tables below reflect the current confirmed 2026 rates for those states; other states’ bracket thresholds are inflation-indexed annually — confirm exact current-year thresholds with each state’s tax authority before relying on precise numbers.

States With No Income Tax

Nine states don’t tax wages and salaries:

State Notes
Alaska No income tax
Florida No income tax
Nevada No income tax
New Hampshire No income tax of any kind — former interest/dividends tax fully repealed effective January 1, 2025
South Dakota No income tax
Tennessee No income tax
Texas No income tax
Washington No income tax (separate capital gains excise tax on high earners)
Wyoming No income tax

States With Flat Tax Rates (2026)

State Flat Rate (2026) Minimum Income
Arizona 2.50% All income
Colorado 4.40% All income
Georgia 4.99% (cut from 5.19% by HB 463, May 2026) All income
Idaho 5.30% (cut from 5.695% by HB 40) All income
Illinois 4.95% All income
Indiana 2.95% (cut from 3.05% in 2024; plus county tax) All income
Iowa 3.80% (flat-tax transition complete as of 2025) All income
Kentucky 3.50% (cut from 4.0%, effective Jan. 1, 2026) All income
Michigan 4.25% All income
Mississippi 4.00% (cut from 4.4%; phasing to 3% by 2030) Above $10,000
North Carolina 3.99% (cut from 4.25% in 2025) All income
Pennsylvania 3.07% All income
Utah 4.45% (cut from 4.5% by SB 60, March 2026) All income

California Tax Brackets (Last Confirmed Structure — 2025 figures, 2026 slightly higher)

California’s brackets are inflation-indexed annually. The figures below reflect the last confirmed (2025) thresholds — confirm exact 2026 figures with the Franchise Tax Board.

Single Filers

Taxable Income Tax Rate
$0 - $11,079 1.00%
$11,080 - $26,264 2.00%
$26,265 - $41,452 4.00%
$41,453 - $57,542 6.00%
$57,543 - $72,724 8.00%
$72,725 - $371,479 9.30%
$371,480 - $445,771 10.30%
$445,772 - $742,953 11.30%
$742,954 - $1,000,000 12.30%
$1,000,001+ 13.30%

Note: The 13.30% top rate already includes the additional 1% Mental Health Services Tax on income over $1 million (12.3% + 1%).

New York Tax Brackets 2026

Single Filers

Taxable Income Tax Rate
$0 - $8,500 4.00%
$8,501 - $11,700 4.50%
$11,701 - $13,900 5.25%
$13,901 - $80,650 5.50%
$80,651 - $215,400 6.00%
$215,401 - $1,077,550 6.85%
$1,077,551 - $5,000,000 9.65%
$5,000,001 - $25,000,000 10.30%
$25,000,001+ 10.90%

Married Filing Jointly

Taxable Income Tax Rate
$0 - $17,150 4.00%
$17,151 - $23,600 4.50%
$23,601 - $27,900 5.25%
$27,901 - $161,550 5.50%
$161,551 - $323,200 6.00%
$323,201 - $2,155,350 6.85%
$2,155,351 - $5,000,000 9.65%
$5,000,001 - $25,000,000 10.30%
$25,000,001+ 10.90%

New York City Additional Tax

NYC residents pay additional city income tax:

Taxable Income NYC Rate
$0 - $12,000 3.078%
$12,001 - $25,000 3.762%
$25,001 - $50,000 3.819%
$50,001+ 3.876%

Combined top rate (NY + NYC): ~14.78%

New Jersey Tax Brackets

Single Filers

Taxable Income Tax Rate
$0 - $20,000 1.40%
$20,001 - $35,000 1.75%
$35,001 - $40,000 3.50%
$40,001 - $75,000 5.525%
$75,001 - $500,000 6.37%
$500,001 - $1,000,000 8.97%
$1,000,001+ 10.75%

Texas (No State Income Tax)

Tax Type Rate
State Income Tax 0%
Local Income Tax None
Property Tax (avg, confirm current) Historically among the highest in the nation
Sales Tax 6.25% state + local (confirm current combined average)

Florida (No State Income Tax)

Tax Type Rate
State Income Tax 0%
Local Income Tax None
Property Tax (avg, confirm current) Historically around 0.8%
Sales Tax 6% state + local (confirm current combined average)

State-by-State Top Marginal Rates (2026)

Highest Tax States

Rank State Top Rate Kicks In At (confirm current threshold)
1 California 13.30% $1,000,000+
2 New York 10.90% $25,000,000+
3 New Jersey 10.75% $1,000,000+
4 Hawaii 11.00% Confirm current threshold
5 Minnesota 9.85% $203,150+ (single, 2026)
6 Oregon 9.90% ~$125,000+
7 Vermont Confirm current top rate Confirm current threshold
8 Wisconsin 7.65% Confirm current threshold
9 Maine 7.15% ~$61,600+

Iowa was previously listed here with an 8.53% graduated top rate — that figure is now obsolete. Iowa completed its transition to a single flat 3.8% rate as of the 2025 tax year and no longer has a graduated structure.

Lowest Tax States (With Income Tax)

Rank State Top Rate (2026)
1 Arizona 2.50% (flat)
2 North Dakota 2.50% (above zero-bracket)
3 Pennsylvania 3.07% (flat)
4 Indiana 2.95% (flat, state only)
5 Kentucky 3.50% (flat)
6 Ohio 3.50% (top bracket, above zero-bracket)
7 Colorado 4.40% (flat)
8 Michigan 4.25% (flat)
9 North Carolina 3.99% (flat)
10 Utah 4.45% (flat)

Tax Comparison: $100,000 Income (Illustrative)

Single filer, standard deductions — confirm exact current figures with a calculator, as this table is illustrative and several underlying rates have changed:

State Approx. Tax Effective Rate
California ~$5,200 ~5.2%
New York ~$4,950 ~5.0%
New Jersey Confirm current figure
Illinois ~$4,950 ~4.95%
Pennsylvania $3,070 3.07%
North Carolina ~$3,990 ~3.99%
Colorado ~$4,400 ~4.40%
Texas $0 0%
Florida $0 0%

Other Major States

Massachusetts (Flat Tax + Surtax)

Tax Type Rate
Standard Income Tax 5.00%
Surtax on income above $1,107,750 (2026, inflation-indexed) 4.00% additional
Effective top rate 9.00%

Ohio (Two-Bracket Tax, 2026)

Taxable Income Tax Rate
$0 - $26,050 0%
$26,051 - $100,000 2.75%
$100,001+ 3.50%

Virginia (Graduated Tax)

Confirm current bracket thresholds with the Virginia Department of Taxation, as this session did not independently re-verify Virginia’s brackets. Virginia’s top rate has historically been 5.75%.

Georgia (Flat Tax, 2026)

Tax Rate
State Income Tax 4.99% (flat, cut from 5.19% by HB 463 in May 2026)

Remote Work Considerations

State Tax Implications

Scenario Tax Situation
Live & work same state One state return
Live in one, work in another May owe both (credit usually available)
Remote work, employer elsewhere Typically taxed by residence state
Traveling worker Complex; consult professional

States With Reciprocal Agreements

These state pairs have historically had agreements to avoid double taxation for commuters — confirm current agreements are still in effect, as this session did not independently re-verify them:

State Has Agreements With (confirm current)
New Jersey Pennsylvania
Pennsylvania NJ, OH, IN, MD, VA, WV
Virginia DC, KY, MD, PA, WV
DC All states (no DC tax on non-residents)
Maryland DC, PA, VA, WV

Key Takeaways

  1. 9 states have no income tax — TX, FL, WA, NV, WY, SD, AK, NH, TN (New Hampshire’s former limited tax on interest/dividends was fully repealed in 2025)

  2. California has the highest rate — 13.3%, which already includes the 1% Mental Health Services Tax on income over $1 million

  3. NYC has additional tax — Combined rate close to 14.8% for high earners

  4. Several states cut rates for 2026 — Arkansas, Georgia, Idaho, Indiana, Kentucky, Mississippi, North Carolina, and Utah all reduced their top/flat rates for 2026

  5. Remote work complicates taxes — Know your obligations in both states

If you’re comparing states before a move, the best and worst states for taxes 2026 ranking scores each state by total tax burden. Federal income tax applies on top of state tax — see 2026 federal income tax brackets for the federal layer. Your effective tax rate is the real measure of what percentage of total income goes to all taxes combined.

WealthVieu
Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy