State Income Tax Rates 2026

Forty-one states and the District of Columbia tax wage income in 2026. 9 do not: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. New Hampshire is the newest arrival on that list, having repealed its interest and dividends tax with effect from 1 January 2025. Any source still describing a New Hampshire income tax is out of date.

Of the states that do tax income, 14 now use a single flat rate and 28 use graduated brackets. The balance has shifted fast: Georgia, Iowa, Mississippi, Louisiana and Ohio have all collapsed graduated schedules into flat or near-flat structures since 2023, and several states cut their rate again for 2026 under statutory revenue triggers.

A headline rate is a poor guide to what you will actually pay. Three things move the answer more than the rate does. Where the top bracket starts:Virginia's top rate begins at $17,000 of taxable income, a threshold last changed in 1990, so nearly every full-time worker pays it, while New York's top rate needs an eight-figure income. Local income tax: every Maryland county, every Indiana county, most Ohio municipalities and New York City all levy their own, sometimes exceeding the state tax itself. What the state taxes instead: Texas and New Hampshire have among the highest effective property tax rates in the country, and Washington withholds two mandatory payroll premiums despite having no income tax at all.

The highest 2026 top rates are California (12.3%), Hawaii (11%), New York (10.9%). The lowest among states that tax income at all are North Dakota (2.5%), Arizona (2.5%), Ohio (2.75%).