Most Americans pay both federal and state income taxes. Forty-one states plus Washington D.C. impose their own income tax, with rates ranging from a flat 2.5% in Arizona to a top marginal rate of 13.3% in California.
Note: Several states cut income tax rates for 2026: Arkansas (3.9%→3.7%), Georgia (5.19%→4.99%), Idaho (5.695%→5.3%), Indiana (3.05%→2.95%), Kentucky (4.0%→3.5%), Mississippi (4.4%→4.0%), North Carolina (4.25%→3.99%), and Utah (4.5%→4.45%). The table below reflects these current 2026 rates.
State Income Tax Rates: Complete Table (2026)
| State | Tax Type | Top Rate (2026) | Number of Brackets |
|---|---|---|---|
| Alabama | Graduated | 5.00% | 3 |
| Alaska | None | 0% | — |
| Arizona | Flat | 2.50% | 1 |
| Arkansas | Graduated | 3.70% | Multiple (cut from 3.9% in May 2026) |
| California | Graduated | 13.30% | 10 |
| Colorado | Flat | 4.40% | 1 |
| Connecticut | Graduated | 6.99% | 7 |
| Delaware | Graduated | 6.60% | 7 |
| Florida | None | 0% | — |
| Georgia | Flat | 4.99% | 1 (cut from 5.19% by HB 463, May 2026) |
| Hawaii | Graduated | 11.00% | 12 |
| Idaho | Flat | 5.30% | 1 (cut from 5.695% by HB 40) |
| Illinois | Flat | 4.95% | 1 |
| Indiana | Flat | 2.95% | 1 (state only; cut from 3.05% in 2024) |
| Iowa | Flat | 3.80% | 1 (transition to flat tax complete as of 2025) |
| Kansas | Graduated | Confirm current top rate | 2024 reform consolidated brackets — confirm current structure |
| Kentucky | Flat | 3.50% | 1 (cut from 4.0%, effective Jan. 1, 2026) |
| Louisiana | Flat | 3.00% | 1 |
| Maine | Graduated | 7.15% | 3 |
| Maryland | Graduated | 5.75% | 8 |
| Massachusetts | Flat + surtax | 9.00% | 1 + surtax above $1,107,750 (2026) |
| Michigan | Flat | 4.25% | 1 |
| Minnesota | Graduated | 9.85% | 4 |
| Mississippi | Flat | 4.00% | 1 (above $10,000; cut from 4.4%) |
| Missouri | Graduated | Confirm current top rate | Historically narrow brackets near a low threshold |
| Montana | Graduated | 5.90% | 2 |
| Nebraska | Graduated | 4.55% | 3 (declining toward 3.99% by 2027 under LB 754) |
| Nevada | None | 0% | — |
| New Hampshire | None | 0% | — (former interest/dividends tax fully repealed 2025) |
| New Jersey | Graduated | 10.75% | 7 |
| New Mexico | Graduated | 5.90% | 5 |
| New York | Graduated | 10.90% | 9 |
| North Carolina | Flat | 3.99% | 1 (cut from 4.25% in 2025) |
| North Dakota | Graduated | 2.50% | 2 (above zero-bracket) |
| Ohio | Graduated | 3.50% | 2 active brackets + zero-bracket |
| Oklahoma | Graduated | 4.75% | 6 |
| Oregon | Graduated | 9.90% | 4 |
| Pennsylvania | Flat | 3.07% | 1 |
| Rhode Island | Graduated | 5.99% | 3 |
| South Carolina | Graduated | 6.40% | 6 |
| South Dakota | None | 0% | — |
| Tennessee | None | 0% | — |
| Texas | None | 0% | — |
| Utah | Flat | 4.45% | 1 (cut from 4.5% by SB 60, March 2026) |
| Vermont | Graduated | Confirm current top rate | 4 |
| Virginia | Graduated | 5.75% | 4 |
| Washington | None | 0% | — (separate 7% capital gains excise tax on high earners) |
| West Virginia | Graduated | Confirm current top rate | 4 |
| Wisconsin | Graduated | 7.65% | 4 |
| Wyoming | None | 0% | — |
| Washington D.C. | Graduated | 10.75% | 7 |
States With No Income Tax
Nine states impose no state income tax on wages:
- Alaska
- Florida
- Nevada
- New Hampshire (former interest/dividends tax fully repealed effective January 1, 2025 — now no income tax of any kind)
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
While no income tax sounds appealing, these states often make up revenue through higher sales taxes, property taxes, or other fees. Texas, for example, has notably higher property tax rates than average.
Highest State Income Tax Rates
| Rank | State | Top Marginal Rate |
|---|---|---|
| 1 | California | 13.30% |
| 2 | Hawaii | 11.00% |
| 3 | New York | 10.90% |
| 4 | New Jersey | 10.75% |
| 5 | Washington D.C. | 10.75% |
| 6 | Oregon | 9.90% |
| 7 | Minnesota | 9.85% |
| 8 | Massachusetts | 9.00% (5% flat + 4% surtax above $1,107,750) |
| 9 | Wisconsin | 7.65% |
| 10 | Maine | 7.15% |
Lowest State Income Tax Rates (Excluding Zero)
| Rank | State | Top Rate (2026) |
|---|---|---|
| 1 | Arizona | 2.50% |
| 2 | North Dakota | 2.50% |
| 3 | Pennsylvania | 3.07% |
| 4 | Indiana | 2.95% |
| 5 | Kentucky | 3.50% |
| 6 | Ohio | 3.50% |
Flat Tax vs. Graduated Tax States
Flat tax states charge the same rate on all income regardless of how much you earn. Graduated states have multiple brackets where higher income is taxed at progressively higher rates.
Flat tax states tend to be more favorable for high earners, while graduated states are more favorable for low-to-moderate earners.
Flat Tax States (2026)
| State | Rate |
|---|---|
| Arizona | 2.50% |
| Colorado | 4.40% |
| Georgia | 4.99% |
| Idaho | 5.30% |
| Illinois | 4.95% |
| Indiana | 2.95% |
| Iowa | 3.80% |
| Kentucky | 3.50% |
| Massachusetts | 5.00% (+ 4% surtax above $1,107,750) |
| Michigan | 4.25% |
| Mississippi | 4.00% (above $10,000) |
| North Carolina | 3.99% |
| Pennsylvania | 3.07% |
| Utah | 4.45% |
How State Income Tax Affects Take-Home Pay (Illustrative)
For someone earning $75,000, the difference in state income tax can be dramatic — confirm exact figures with a calculator, as this table is illustrative:
| State | State Tax Owed (approx.) | Monthly Impact |
|---|---|---|
| Texas (0%) | $0 | $0 |
| Pennsylvania (3.07%) | $2,303 | $192 |
| Illinois (4.95%) | ~$3,570 | ~$298 |
| California (progressive, ~5-6% at this level) | ~$3,000-$3,600 | ~$250-$300 |
| New York (progressive, ~4.7% at this level) | ~$3,520 | ~$293 |
The actual amounts vary based on state-specific deductions, exemptions, and bracket structures.
State Tax Trends (2026)
Several states have recently reduced income taxes:
- Iowa completed its transition to a flat 3.8% rate as of the 2025 tax year (no longer graduated, and no further reduction is scheduled based on currently available information)
- Mississippi reduced its rate to 4.0% for 2026 (on income above $10,000) and plans further reductions to 3% by 2030
- Georgia cut its flat rate to 4.99% for 2026 via HB 463, three years ahead of the original schedule
- Arkansas cut its top rate to 3.7% in a May 2026 special session
- Idaho cut its flat rate to 5.3% via HB 40
- Indiana cut its flat rate to 2.95% for 2026, continuing a multi-year phase-down
- Kentucky cut its flat rate to 3.5% for 2026 via HB 1
- North Carolina cut its flat rate to 3.99% for 2026, with further scheduled cuts to 3.49% (2027) and 2.99% (2028)
- Utah cut its flat rate to 4.45% via SB 60
Meanwhile, some states have added or maintained higher brackets for top earners:
- Massachusetts maintains a 4% surtax on income above an inflation-indexed threshold ($1,107,750 for 2026, not a flat $1 million)
- New York continues its high-earner brackets above $5 million and $25 million
Related: Federal Income Tax Brackets | States With No Income Tax | Average Income by State
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