State Income Tax Rates 2026

The 9 states with no income tax

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming levy no tax on wage income. Two are worth a footnote. New Hampshire finished phasing out its tax on interest and dividends, so it now taxes no personal income at all. Washington has no wage tax but does tax investment gains — 7% on long-term capital gains above an annual standard deduction ($278,000 for 2025, indexed for inflation), plus an additional 2.9% (9.9% in total) on gains above $1 million — which makes it genuinely different from the other eight. Its list membership also has an end date for high earners: a 9.9% tax on income over $1 million, enacted in 2026, takes effect January 1, 2028, with the first returns due in April 2029.

None of them are free of tax, though. Revenue comes from somewhere else: property tax in Texas and New Hampshire, sales tax in Tennessee and Washington, severance taxes on extraction in Alaska and Wyoming, gaming and tourism in Nevada and Florida. The comparison that matters when weighing a move is total burden, not this one line of it.

The 15 flat-rate states

These apply one rate to taxable income, though Ohio, Mississippi, and Idaho exempt a first slice at 0%: Arizona at 2.5%, Ohio at 2.75%, Indiana at 2.95%, Louisiana at 3%, Pennsylvania at 3.07%, Kentucky at 3.5%, Iowa at 3.8%, North Carolina at 3.99%, Mississippi at 4%, Michigan at 4.25%, Colorado at 4.4%, Utah at 4.45%, Illinois at 4.95%, Georgia at 4.99%, Idaho at 5.3%.

Several rates are still moving. Hawaii, Indiana, Mississippi, Montana, Nebraska have 2027 reductions already enacted in statute, part of multi-year phase-downs. A word of caution on reading those schedules: they can move in either direction. Georgia's cut scheduled for 2026 did not happen on January 1 because its revenue trigger was not met, then in May the legislature cut the rate further, to 4.99%, retroactive to the start of the year. A published schedule is not a guarantee.

The 26 progressive states and D.C.

The rest use graduated brackets, ranging from North Dakota at 2.5% up to California at 13.3%. The average top rate across all 42 taxing jurisdictions is 6.014%.

Top rates flatter the comparison, because the threshold matters as much as the rate. California's 13.3% applies only above $1,000,000 of taxable income for a single filer, so almost nobody pays it. A state with a lower headline rate that reaches it at $30,000 can cost a middle earner more.

Local income taxes stack on top

13 states permit city, county, or school district income taxes on top of the state rate. New York City, Philadelphia, Detroit, and most Maryland counties are the ones people meet most often. Every rate in the table above is state-level only, so a resident of one of those places pays more than it shows.

Frequently asked questions

Which states have no income tax?

9 states levy no tax on wage income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. New Hampshire finished phasing out its tax on interest and dividends, so it now taxes no personal income at all. Washington is the exception worth knowing — it has no wage income tax but does tax investment gains: 7% on long-term capital gains above an annual standard deduction ($278,000 for 2025, indexed for inflation), plus an additional 2.9% (9.9% in total) on gains above $1 million. And a 9.9% tax on income over $1 million, enacted in 2026, takes effect January 1, 2028, with the first returns due in April 2029.

Which state has the highest income tax rate?

California has the highest top marginal rate at 13.3% for 2026. Top rates apply only to income above a threshold, so very few filers in any state actually pay the headline figure — in California it begins at $1,000,000 for a single filer.

How many states have a flat income tax?

15 states apply a single rate to taxable income, some above a zero-rate band: Arizona (2.5%), Ohio (2.75%), Indiana (2.95%), Louisiana (3%), Pennsylvania (3.07%), Kentucky (3.5%), Iowa (3.8%), North Carolina (3.99%), Mississippi (4%), Michigan (4.25%), Colorado (4.4%), Utah (4.45%), Illinois (4.95%), Georgia (4.99%), Idaho (5.3%). Several moved from progressive brackets to a flat rate in recent years, and a few are still phasing their rate down on a statutory schedule.

Does a low state income tax mean a lower total tax burden?

Not necessarily. States that forgo income tax raise revenue elsewhere — Texas and New Hampshire through high property taxes, Tennessee and Washington through high sales taxes, Alaska and Wyoming through resource severance taxes. The comparison that matters when weighing a move is total burden across income, sales, and property tax, not income tax alone.

Do cities charge income tax on top of the state?

Yes, in 13 states. Local income taxes are levied by cities, counties, or school districts and stack on top of the state rate — New York City, Philadelphia, Detroit, and most Maryland counties are the best-known examples. The rates in the table above are state-level only.

Calculate your own

Rates are a starting point, not an answer — standard deductions, exemptions, and bracket thresholds all move the real figure. Pick your state above for a calculator that applies its actual 2026 schedule, or use the all-states income tax calculator to compare federal and state together. For paycheck-level withholding including FICA, see the state paycheck calculators.