🏛 2026 Update: The One Big Beautiful Bill (Public Law 119-21) is now law, confirmed 2026 IRS rates including $16,100 standard deduction, No Tax on Overtime & Tips. See 2026 Changes →
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2026 IRS Rates
2026 US state income tax comparison chart highlighting rates

State Income Tax Comparison 2026: All 50 States Compared

State income tax rates range from 0% (nine states with no tax) to over 13% in California's top bracket. This is the full 2026 comparison across all 50 states, with effective rates for common income levels and the seven states that updated rates for 2026.

📋 Our Research Team - Our tax researchers manually verify every formula against IRS Rev. Proc. 2025-32, SSA, and state Departments of Revenue. Data audited quarterly. Report a data error.

The Nine No-Tax States (And Why)

Nine states levy zero state income tax on wages in 2026:

  • Alaska, funded by oil revenue and the Permanent Fund
  • Florida, sales/tourism tax base
  • Nevada, casino and tourism taxes
  • New Hampshire, no wage tax, but 5% tax on dividends/interest (phasing out by 2027)
  • South Dakota, high sales tax
  • Tennessee, eliminated investment tax in 2021
  • Texas, high property tax compensates
  • Washington, high sales tax + 7% capital gains tax over $250K
  • Wyoming, mineral severance taxes

"No state income tax" doesn't mean "low total tax burden." Texas property taxes average 1.6%-2.2% of home value annually, among the highest in the country. Tennessee, Florida, and Washington have sales taxes near 9-10% combined state/local. Compare total burden, not just income tax.

Flat-Rate States in 2026

Twelve states use a flat-rate (single bracket) income tax in 2026 rather than progressive brackets:

  • Arizona: 2.5%
  • Colorado: 4.40%
  • Georgia: 5.39% (moved from progressive in 2024)
  • Idaho: 5.695%
  • Illinois: 4.95%
  • Indiana: 3.0% (lowered from 3.05% in 2026)
  • Kentucky: 4.0% (lowered from 4.5%)
  • Michigan: 4.05%
  • Mississippi: 4.7% (phasing to 4.0% by 2030)
  • North Carolina: 4.25% (lowered from 4.5%)
  • Pennsylvania: 3.07%
  • Utah: 4.65%

Top Bracket Comparison: Where Tax Bites Hardest

StateTop RateKicks in at
California13.30%$1M (1% Mental Health Tax)
Hawaii11.00%$200K single
New York10.90%$25M+
New Jersey10.75%$1M+
Oregon9.90%$125K single
Massachusetts9.00%$1M+ ("Millionaire Tax")
Minnesota9.85%$183K+
DC10.75%$1M+

2026 State Tax Changes You Need to Know

Seven states adjusted their 2026 rates:

  • Indiana dropped from 3.05% to 3.0%
  • Kentucky dropped from 4.5% to 4.0%
  • North Carolina dropped from 4.5% to 4.25%
  • Mississippi continued phase-down to 4.7% (target 4.0% by 2030)
  • Iowa moved to single 3.8% flat rate
  • Louisiana moved to single 3.0% flat rate
  • Missouri dropped top rate to 4.7%

OBBBA's federal-only deductions (overtime, tips, senior) do not automatically reduce your state taxable income. About 35 states with progressive or flat income tax still tax overtime and tip income at the state level. Always check your state Department of Revenue page for OBBBA conformity status.

State Income Tax Comparison FAQ

Which states have no income tax in 2026?

Nine states: Alaska, Florida, Nevada, New Hampshire (no wage tax, small interest/dividend tax phasing out), South Dakota, Tennessee, Texas, Washington (no wage tax but 7% capital gains over $250K), and Wyoming.

Which state has the lowest income tax?

Among taxing states, North Dakota has the lowest top rate at 2.5%. Among flat-rate states, Arizona (2.5%) is lowest. The no-tax states (Texas, Florida, etc.) have zero on wages, though they often have higher property or sales taxes.

Does OBBBA apply to state income tax?

No, OBBBA Sections 70202 (overtime), 70203 (tips), and 70103 (senior) are federal-only deductions. Most states require you to add the OBBBA amounts back to state taxable income. Currently 4 states (Alabama, Colorado, DC, New Mexico) have explicitly stated they will continue taxing overtime and tips at the state level.

Which states updated their tax rates for 2026?

Indiana, Kentucky, North Carolina, Mississippi, Iowa, Louisiana, and Missouri all reduced rates for 2026. Check our state-specific pages for exact paycheck impact in your state.

How do I calculate state tax on my paycheck?

Use the state-specific page on this site, each computes state tax using current 2026 brackets, then combines with federal tax, FICA, and any OBBBA deductions to show accurate take-home. Most flat-rate states use straightforward multiplication; progressive states use bracket-by-bracket calculation.

Related 2026 Tax Calculators

State Tax Authority

"Nine states do not levy a tax on wage and salary income, while 41 states and the District of Columbia tax all or part of personal income. State income tax structures range from flat-rate to highly progressive systems."
"State government tax collections totaled over $1.2 trillion in fiscal year 2023, with individual income taxes representing the largest single source of state tax revenue at approximately 40% of collections."