State Income Tax Rates 2026

State income tax is the biggest variable in your paycheck from state to state. Federal income tax and FICA (Social Security + Medicare) are the same everywhere — but state income tax ranges from zero in 9 states to over 12% in California. For a worker earning $80,000 a year, that's a difference of $0 to $7,000+ per year in state tax alone.

This guide covers every state's 2026 income tax structure, rate, and key facts. Use it alongside the state-specific calculators to see your exact take-home pay.

Complete 2026 state income tax table — all 50 states

The 9 states with no income tax

Nine states impose no income tax on wages or salaries in 2026. Workers in these states keep every dollar above federal taxes and FICA:

• Alaska — Alaska is one of only 9 states with no state income tax.
• Florida — Florida is one of 9 states with no state income tax on wages or salaries.
• Nevada — Nevada is one of 9 states with no state income tax on wages or salaries.
• New Hampshire — New Hampshire eliminated its 3% tax on interest and dividend income in 2025.
• South Dakota — South Dakota is one of 9 states with no state income tax.
• Tennessee — Tennessee eliminated its last income tax (the Hall Tax on investment income) in 2021.
• Texas — Texas is one of only 9 states with no state income tax on wages or salaries.
• Washington — Washington is one of 9 states with no income tax on wages or salaries.
• Wyoming — Wyoming is one of only 9 states with no state income tax on wages.

Living in a no-tax state has a meaningful compounding effect over a career. A worker earning $75,000 in Texas keeps roughly $3,500–$5,000 more per year than a comparable worker in a state with a 5%–7% income tax. Over 30 years, invested at 7% average returns, that difference grows to $350,000–$500,000 in additional wealth.

Flat-rate income tax states (2026)

Fifteen states use a single flat rate applied to all taxable income, from lowest to highest rate:

• Arizona — 2.50% flat · Arizona's flat 2.5% rate took full effect in 2023, replacing a graduated system.
• Louisiana — 3% flat · Louisiana replaced its 1.85%–4.25% graduated brackets with a flat 3% rate starting in 2025.
• Indiana — 3.05% flat · Indiana's flat 3.05% rate is one of the lowest state income tax rates in the U.S.
• Pennsylvania — 3.07% flat · Pennsylvania's 3.07% rate has been unchanged since 1991 — one of the most stable rates in the country.
• Iowa — 3.80% flat · Iowa replaced a 9-bracket graduated system (top rate 8.98%) with a flat 3.8% rate in 2025.
• Kentucky — 4% flat · Kentucky reduced its income tax from 5% to 4.5% in 2023 and 4.0% in 2024.
• Mississippi — 4% flat · Mississippi passed legislation to eliminate its income tax entirely, reducing the rate each year toward zero.
• Michigan — 4.25% flat · Michigan's 4.25% flat rate has been stable, though there are legislative proposals to reduce it.
• Colorado — 4.40% flat · Colorado's flat 4.4% rate applies to all income above the standard deduction.
• North Carolina — 4.50% flat · North Carolina has been cutting its flat income tax rate annually — from 5.25% in 2022 to 4.5% in 2025.
• Utah — 4.65% flat · Utah's flat rate was reduced from 4.85% in 2023 and is among the lower flat rates in the Mountain West.
• Illinois — 4.95% flat · Illinois's constitution requires a flat income tax rate — all income is taxed at the same 4.95%.
• Massachusetts — 5% flat · Massachusetts's flat 5% rate has been unchanged for years — one of the most stable tax structures in the country.
• Georgia — 5.39% flat · Georgia replaced its graduated tax system with a flat rate starting in 2024, currently at 5.39%.
• Idaho — 5.80% flat · Idaho reduced its income tax to a flat 5.8% rate in 2022, down from a graduated system.

Flat-rate states are simpler to calculate than progressive states — there's no bracket math. If you earn $60,000 in Arizona at 2.5%, you pay $1,500 in state income tax. If you earn $120,000, you pay $3,000. The rate doesn't change as you earn more.

The 10 highest state income tax rates in 2026

High top rates don't always mean high effective rates. California's 12.3% top rate only applies above $360,659 for single filers — most workers pay an effective state rate well below that. Use the California paycheck calculator to see your exact effective rate.

States cutting income taxes fastest (2022–2026)

A significant trend since 2022 is states aggressively cutting income taxes, several on a path to elimination:

• Iowa — Replaced a 9-bracket system (top rate 8.98%) with a flat 3.8% in 2025. Further reductions are scheduled.
• Mississippi — Rate dropped to 4.0% in 2025 on a legislated path to 0% by 2030.
• West Virginia — Enacted a 21.25% across-the-board cut in 2023–2024, with the governor seeking full elimination.
• North Carolina — Flat rate dropped from 5.25% (2022) to 4.5% (2025), legislated to reach 3.99% in 2026 and lower thereafter.
• Kentucky — Reduced from 5% (2022) to 4.0% (2024), with continued reductions tied to revenue targets.
• Louisiana — Replaced graduated brackets with a flat 3% rate in 2025, a major simplification and cut for most workers.
• Arkansas — Top rate dropped from 5.9% to 4.4% since 2022, with further reductions scheduled.
• Nebraska — LB754 mandates annual rate reductions from 6.84% toward an eventual 3.99% target.

How state income tax is calculated on your paycheck

State income tax withholding uses the same general methodology as federal: your per-period gross pay is annualized, reduced by any applicable state standard deduction or exemptions, and then taxed at the state's rate or brackets. The result is divided by your pay periods per year to get the per-paycheck withholding amount.

Key differences from state to state:

• Standard deduction: Some states use the federal standard deduction amount ($15,000 single in 2026). Others use much lower state-specific amounts (California: $5,540; Oregon: $2,420; Pennsylvania: $0). A lower state deduction means more income is subject to state tax.
• Bracket structures: Progressive states range from 2 brackets (Montana: 4.7% and 5.9%) to 12 brackets (Hawaii, with rates from 1.4% to 11%).
• Pre-tax deductions: Traditional 401(k) and Section 125 health insurance premiums reduce state taxable wages in most states, just as they do for federal taxes.
• Local taxes: States like Maryland, Indiana, and Ohio have mandatory local income taxes layered on top of state income tax — these are not captured in the per-state calculators.

State income tax vs. take-home pay: example calculations

The table below shows estimated annual state income tax for a single filer earning $75,000, paid biweekly, taking the standard deduction, with no pre-tax deductions. Federal taxes and FICA are not included — only the state tax comparison:

Note: These are estimates using each state's 2026 rates and standard deductions. Use the state calculators for precise figures based on your actual salary and filing status.

Frequently asked questions

• Which states have no income tax in 2026?
  Nine states have no income tax on wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire eliminated its last remaining tax on investment income in 2025, making it fully income-tax-free on all income types.
• What is the highest state income tax rate in 2026?
  California has the highest top marginal state income tax rate at 12.3% (13.3% above $1 million). Hawaii is second at 11%, followed by New Jersey at 10.75% and Oregon at 9.9%. However, top marginal rates only apply to high incomes — most workers pay a much lower effective rate.
• How much does state income tax reduce my paycheck?
  For a $75,000 salary paid biweekly, state income tax typically reduces each paycheck by $0 (no-tax states), $40–$90 (low flat-rate states like Indiana or Arizona), $90–$180 (mid-range states like Colorado or Massachusetts), or $200–$350+ (high-rate states like California, New York, or Oregon). Use the state-specific calculators on this site to see exact figures for your salary and filing status.
• Are state income taxes deductible on federal taxes?
  Yes, state income taxes paid are deductible on your federal return if you itemize. However, the SALT (State and Local Tax) deduction is capped at $10,000 per year ($5,000 for married filing separately) under current federal law. Most people in high-tax states hit this cap quickly, so the federal offset is limited to $10,000 regardless of how much more you paid in state and local taxes.
• Which states are eliminating their income tax?
  Mississippi has legislated a path to zero income tax by 2030, currently at 4.0% in 2025. West Virginia's governor has proposed full elimination. Iowa cut its complex 9-bracket system to a flat 3.8% in 2025 with further reductions ahead. Several other states (Kentucky, Nebraska, North Carolina, Arkansas) are on legislated glide paths downward but have not committed to full elimination.

Use the calculators

The table above gives rate comparisons. For your actual take-home pay based on your specific salary, filing status, pay frequency, and deductions, use the state-specific calculators:

• Paycheck calculator — select your state
• Texas paycheck calculator — no state income tax
• California paycheck calculator — highest state tax in the U.S.
• New York paycheck calculator — progressive brackets + NYC city tax
• Florida paycheck calculator — no state income tax
• Illinois paycheck calculator — flat 4.95%
• All 50 state paycheck calculators

Last updated: January 2026 · Sources: Each state's Department of Revenue, IRS Rev. Proc. 2025-28. Rates subject to change — verify with your state's revenue agency for the most current figures.