Which States Have No Income Tax
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming have no individual income tax in 2026. Washington taxes only capital gains, the profit from selling stocks and other investments, so 9 states do not tax wages. The other 41 states and the District of Columbia do (Tax Foundation).
No income tax does not mean low taxes for everyone. These states pay for schools, roads and courts mostly with sales and property taxes, which take a bigger bite from a small paycheck than from a large one.
Key facts
- 8 states have no income tax, and Washington taxes only capital gains.
- 15 states tax income at one flat rate; 26 states and D.C. use graduated brackets.
- Top rates run from 2.5% in Arizona and North Dakota to 13.3% in California.
- 11 states cut their income tax rate for 2026.
- In all 9 no-wage-tax states, the poorest 20% pay a higher tax rate than the top 1% (ITEP).
Income Tax by State in 2026
Most states tax wages, but how much depends on the structure: none, one flat rate, or brackets that rise with income. Choose your state to see its rates for a single filer and any change that took effect this year or is scheduled.
Your state's income tax
Choose your state to see whether it taxes income and at what rate in 2026.
Alabama
- Does the state tax income, and at what rate?
- 2% to 5%; the top rate starts at $3,000 (single filer) Local income taxes average 0.07% of income where they apply (2023). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Alaska
- Does the state tax income, and at what rate?
- No tax on wages or other individual income Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Arizona
- Does the state tax income, and at what rate?
- Flat 2.5% Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Arkansas
- Does the state tax income, and at what rate?
- 2% to 3.9%; the top rate starts at $4,600 (single filer) These rates apply above $92,300 of income (2025 figure); a separate rate table applies below that. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
California
- Does the state tax income, and at what rate?
- 1% to 13.3%; the top rate starts at $1,000,000 (single filer) The top rate includes a 1% mental health tax on income over $1 million. A separate 1.3% disability insurance payroll tax brings the top rate on wages to 14.6%. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Colorado
- Does the state tax income, and at what rate?
- Flat 4.4% Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Connecticut
- Does the state tax income, and at what rate?
- 2% to 6.99%; the top rate starts at $500,000 (single filer) High earners can pay the top rate on all income, not only the amount over the threshold. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Delaware
- Does the state tax income, and at what rate?
- 2.2% to 6.6%; the top rate starts at $60,000 (single filer) Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
District of Columbia
- Does the state tax income, and at what rate?
- 4% to 10.75%; the top rate starts at $1,000,000 (single filer) Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Florida
- Does the state tax income, and at what rate?
- No tax on wages or other individual income Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Georgia
- Does the state tax income, and at what rate?
- Flat 5.19% Cut from 5.39% by HB 111 (2025), with more cuts allowed if revenue targets are met. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Hawaii
- Does the state tax income, and at what rate?
- 1.4% to 11%; the top rate starts at $325,000 (single filer) 12 brackets, the most of any state. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Idaho
- Does the state tax income, and at what rate?
- Flat 5.3% on income over $4,811 Cut from 5.695% by House Bill 40 (2025). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Illinois
- Does the state tax income, and at what rate?
- Flat 4.95% Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Indiana
- Does the state tax income, and at what rate?
- Flat 2.95% Cut from 3% on January 1, 2026; 2.9% is scheduled for 2027. Local income taxes average 0.35% of income where they apply (2023). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Iowa
- Does the state tax income, and at what rate?
- Flat 3.8% Local income taxes average 0.08% of income where they apply (2023). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Kansas
- Does the state tax income, and at what rate?
- 5.2% to 5.58%; the top rate starts at $23,000 (single filer) Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Kentucky
- Does the state tax income, and at what rate?
- Flat 3.5% Cut from 4% on January 1, 2026, under revenue triggers approved in HB 1 (2025). Local income taxes average 0.93% of income where they apply (2023). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Louisiana
- Does the state tax income, and at what rate?
- Flat 3% Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Maine
- Does the state tax income, and at what rate?
- 5.8% to 7.15%; the top rate starts at $64,849 (single filer) Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Maryland
- Does the state tax income, and at what rate?
- 2% to 6.5%; the top rate starts at $1,000,000 (single filer) Added 6.25% and 6.5% brackets and a 2% capital gains surtax above $350,000 in 2025. Local income taxes average 2.4% of income where they apply (2023). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Massachusetts
- Does the state tax income, and at what rate?
- 5% to 9%; the top rate starts at $1,083,150 (single filer) The 9% rate includes the 4% surtax on income over about $1.08 million. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Michigan
- Does the state tax income, and at what rate?
- Flat 4.25% Local income taxes average 0.16% of income where they apply (2023). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Minnesota
- Does the state tax income, and at what rate?
- 5.35% to 9.85%; the top rate starts at $203,150 (single filer) Adds a 1% tax on investment income over $1 million. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Mississippi
- Does the state tax income, and at what rate?
- Flat 4% on income over $10,000 Cut from 4.4% on January 1, 2026. HB 1 (2025) sets 3.75% in 2027 and 3% by 2030; further cuts only if revenue triggers are met. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Missouri
- Does the state tax income, and at what rate?
- 2% to 4.7%; the top rate starts at $9,436 (single filer) Capital gains are exempt from the state income tax. Local income taxes average 0.18% of income where they apply (2023). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Montana
- Does the state tax income, and at what rate?
- 4.7% to 5.65%; the top rate starts at $47,500 (single filer) Top rate cut from 5.9% in 2026; 5.4% is scheduled for 2027. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Nebraska
- Does the state tax income, and at what rate?
- 2.46% to 4.55%; the top rate starts at $24,760 (single filer) Top rate cut from 5.2% on January 1, 2026, on the way to 3.99% by 2027. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Nevada
- Does the state tax income, and at what rate?
- No tax on wages or other individual income Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
New Hampshire
- Does the state tax income, and at what rate?
- No tax on wages or other individual income Repealed its tax on interest and dividends as of 2025, so it now taxes no individual income. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
New Jersey
- Does the state tax income, and at what rate?
- 1.4% to 10.75%; the top rate starts at $1,000,000 (single filer) Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
New Mexico
- Does the state tax income, and at what rate?
- 1.5% to 5.9%; the top rate starts at $210,000 (single filer) Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
New York
- Does the state tax income, and at what rate?
- 3.9% to 10.9%; the top rate starts at $25,000,000 (single filer) High earners can pay the top rate on all income, not only the amount over the threshold. Local income taxes average 1.6% of income where they apply (2023). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
North Carolina
- Does the state tax income, and at what rate?
- Flat 3.99% Cut from 4.25% on January 1, 2026, the last scheduled step. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
North Dakota
- Does the state tax income, and at what rate?
- 1.95% to 2.5%; the top rate starts at $244,825 (single filer) Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Ohio
- Does the state tax income, and at what rate?
- Flat 2.75% on income over $26,050 Became a flat 2.75% on income over $26,050 on January 1, 2026 (HB 96). Local income taxes average 1.2% of income where they apply (2023). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Oklahoma
- Does the state tax income, and at what rate?
- 2.5% to 4.5%; the top rate starts at $7,200 (single filer) HB 2764 cut six brackets to three and the top rate from 4.75% for 2026, with more cuts tied to revenue. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Oregon
- Does the state tax income, and at what rate?
- 4.75% to 9.9%; the top rate starts at $125,000 (single filer) Local income taxes average 0.18% of income where they apply (2023). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Pennsylvania
- Does the state tax income, and at what rate?
- Flat 3.07% Local income taxes average 0.99% of income where they apply (2023). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Rhode Island
- Does the state tax income, and at what rate?
- 3.75% to 5.99%; the top rate starts at $186,450 (single filer) Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
South Carolina
- Does the state tax income, and at what rate?
- 3% to 6%; the top rate starts at $18,230 (single filer) The 6% top rate was a temporary cut through June 30, 2026; it was scheduled to return to 6.2% on July 1, 2026. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
South Dakota
- Does the state tax income, and at what rate?
- No tax on wages or other individual income Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Tennessee
- Does the state tax income, and at what rate?
- No tax on wages or other individual income Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Texas
- Does the state tax income, and at what rate?
- No tax on wages or other individual income Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Utah
- Does the state tax income, and at what rate?
- Flat 4.5% Cut from 4.55% by House Bill 106 (2025). Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Vermont
- Does the state tax income, and at what rate?
- 3.35% to 8.75%; the top rate starts at $249,700 (single filer) Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Virginia
- Does the state tax income, and at what rate?
- 2% to 5.75%; the top rate starts at $17,000 (single filer) The top rate starts at $17,000 of taxable income. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Washington
- Does the state tax income, and at what rate?
- No tax on wages; capital gains taxed at 7% to 9.9% Taxes long-term capital gains only, after a $278,000 deduction (2025). A 9.9% tax on household income over $1 million (SB 6346) starts with 2028 income if it survives a court challenge. Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
West Virginia
- Does the state tax income, and at what rate?
- 2.22% to 4.82%; the top rate starts at $60,000 (single filer) Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Wisconsin
- Does the state tax income, and at what rate?
- 3.5% to 7.65%; the top rate starts at $332,720 (single filer) Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Wyoming
- Does the state tax income, and at what rate?
- No tax on wages or other individual income Source
Verified September 28, 2026. Rates change each year; check your state revenue department before you file.
Rates are for a single filer as of January 1, 2026, from the Tax Foundation, except Washington's capital gains rates, which come from the state Department of Revenue. They exclude local income taxes and payroll taxes. Married couples often have wider brackets. This is general information, not tax advice.
Does the state tax income, and at what rate?
- No income tax (8)
- Capital gains only (1)
- Flat rate (15)
- Graduated rates (27)
Sources: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (February 17, 2026); Washington Department of Revenue, New tiered rates for Washington's capital gains tax (June 30, 2025); Washington State Legislature, SB 6346 (Chapter 238, 2026 Laws); Mississippi Free Press, Mississippi income tax phase-down (March 2025). Verified September 28, 2026.
| State | Does the state tax income, and at what rate? |
|---|---|
| Alabama | 2% to 5%; the top rate starts at $3,000 (single filer) |
| Alaska | No tax on wages or other individual income |
| Arizona | Flat 2.5% |
| Arkansas | 2% to 3.9%; the top rate starts at $4,600 (single filer) |
| California | 1% to 13.3%; the top rate starts at $1,000,000 (single filer) |
| Colorado | Flat 4.4% |
| Connecticut | 2% to 6.99%; the top rate starts at $500,000 (single filer) |
| Delaware | 2.2% to 6.6%; the top rate starts at $60,000 (single filer) |
| District of Columbia | 4% to 10.75%; the top rate starts at $1,000,000 (single filer) |
| Florida | No tax on wages or other individual income |
| Georgia | Flat 5.19% |
| Hawaii | 1.4% to 11%; the top rate starts at $325,000 (single filer) |
| Idaho | Flat 5.3% on income over $4,811 |
| Illinois | Flat 4.95% |
| Indiana | Flat 2.95% |
| Iowa | Flat 3.8% |
| Kansas | 5.2% to 5.58%; the top rate starts at $23,000 (single filer) |
| Kentucky | Flat 3.5% |
| Louisiana | Flat 3% |
| Maine | 5.8% to 7.15%; the top rate starts at $64,849 (single filer) |
| Maryland | 2% to 6.5%; the top rate starts at $1,000,000 (single filer) |
| Massachusetts | 5% to 9%; the top rate starts at $1,083,150 (single filer) |
| Michigan | Flat 4.25% |
| Minnesota | 5.35% to 9.85%; the top rate starts at $203,150 (single filer) |
| Mississippi | Flat 4% on income over $10,000 |
| Missouri | 2% to 4.7%; the top rate starts at $9,436 (single filer) |
| Montana | 4.7% to 5.65%; the top rate starts at $47,500 (single filer) |
| Nebraska | 2.46% to 4.55%; the top rate starts at $24,760 (single filer) |
| Nevada | No tax on wages or other individual income |
| New Hampshire | No tax on wages or other individual income |
| New Jersey | 1.4% to 10.75%; the top rate starts at $1,000,000 (single filer) |
| New Mexico | 1.5% to 5.9%; the top rate starts at $210,000 (single filer) |
| New York | 3.9% to 10.9%; the top rate starts at $25,000,000 (single filer) |
| North Carolina | Flat 3.99% |
| North Dakota | 1.95% to 2.5%; the top rate starts at $244,825 (single filer) |
| Ohio | Flat 2.75% on income over $26,050 |
| Oklahoma | 2.5% to 4.5%; the top rate starts at $7,200 (single filer) |
| Oregon | 4.75% to 9.9%; the top rate starts at $125,000 (single filer) |
| Pennsylvania | Flat 3.07% |
| Rhode Island | 3.75% to 5.99%; the top rate starts at $186,450 (single filer) |
| South Carolina | 3% to 6%; the top rate starts at $18,230 (single filer) |
| South Dakota | No tax on wages or other individual income |
| Tennessee | No tax on wages or other individual income |
| Texas | No tax on wages or other individual income |
| Utah | Flat 4.5% |
| Vermont | 3.35% to 8.75%; the top rate starts at $249,700 (single filer) |
| Virginia | 2% to 5.75%; the top rate starts at $17,000 (single filer) |
| Washington | No tax on wages; capital gains taxed at 7% to 9.9% |
| West Virginia | 2.22% to 4.82%; the top rate starts at $60,000 (single filer) |
| Wisconsin | 3.5% to 7.65%; the top rate starts at $332,720 (single filer) |
| Wyoming | No tax on wages or other individual income |
See all states in a table
| Alabama | 2% to 5%; the top rate starts at $3,000 (single filer) |
|---|---|
| Alaska | No tax on wages or other individual income |
| Arizona | Flat 2.5% |
| Arkansas | 2% to 3.9%; the top rate starts at $4,600 (single filer) |
| California | 1% to 13.3%; the top rate starts at $1,000,000 (single filer) |
| Colorado | Flat 4.4% |
| Connecticut | 2% to 6.99%; the top rate starts at $500,000 (single filer) |
| Delaware | 2.2% to 6.6%; the top rate starts at $60,000 (single filer) |
| District of Columbia | 4% to 10.75%; the top rate starts at $1,000,000 (single filer) |
| Florida | No tax on wages or other individual income |
| Georgia | Flat 5.19% |
| Hawaii | 1.4% to 11%; the top rate starts at $325,000 (single filer) |
| Idaho | Flat 5.3% on income over $4,811 |
| Illinois | Flat 4.95% |
| Indiana | Flat 2.95% |
| Iowa | Flat 3.8% |
| Kansas | 5.2% to 5.58%; the top rate starts at $23,000 (single filer) |
| Kentucky | Flat 3.5% |
| Louisiana | Flat 3% |
| Maine | 5.8% to 7.15%; the top rate starts at $64,849 (single filer) |
| Maryland | 2% to 6.5%; the top rate starts at $1,000,000 (single filer) |
| Massachusetts | 5% to 9%; the top rate starts at $1,083,150 (single filer) |
| Michigan | Flat 4.25% |
| Minnesota | 5.35% to 9.85%; the top rate starts at $203,150 (single filer) |
| Mississippi | Flat 4% on income over $10,000 |
| Missouri | 2% to 4.7%; the top rate starts at $9,436 (single filer) |
| Montana | 4.7% to 5.65%; the top rate starts at $47,500 (single filer) |
| Nebraska | 2.46% to 4.55%; the top rate starts at $24,760 (single filer) |
| Nevada | No tax on wages or other individual income |
| New Hampshire | No tax on wages or other individual income |
| New Jersey | 1.4% to 10.75%; the top rate starts at $1,000,000 (single filer) |
| New Mexico | 1.5% to 5.9%; the top rate starts at $210,000 (single filer) |
| New York | 3.9% to 10.9%; the top rate starts at $25,000,000 (single filer) |
| North Carolina | Flat 3.99% |
| North Dakota | 1.95% to 2.5%; the top rate starts at $244,825 (single filer) |
| Ohio | Flat 2.75% on income over $26,050 |
| Oklahoma | 2.5% to 4.5%; the top rate starts at $7,200 (single filer) |
| Oregon | 4.75% to 9.9%; the top rate starts at $125,000 (single filer) |
| Pennsylvania | Flat 3.07% |
| Rhode Island | 3.75% to 5.99%; the top rate starts at $186,450 (single filer) |
| South Carolina | 3% to 6%; the top rate starts at $18,230 (single filer) |
| South Dakota | No tax on wages or other individual income |
| Tennessee | No tax on wages or other individual income |
| Texas | No tax on wages or other individual income |
| Utah | Flat 4.5% |
| Vermont | 3.35% to 8.75%; the top rate starts at $249,700 (single filer) |
| Virginia | 2% to 5.75%; the top rate starts at $17,000 (single filer) |
| Washington | No tax on wages; capital gains taxed at 7% to 9.9% |
| West Virginia | 2.22% to 4.82%; the top rate starts at $60,000 (single filer) |
| Wisconsin | 3.5% to 7.65%; the top rate starts at $332,720 (single filer) |
| Wyoming | No tax on wages or other individual income |
No states match. Clear the search or filter to see all 51.
Sources: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (February 17, 2026); Washington Department of Revenue, New tiered rates for Washington's capital gains tax (June 30, 2025); Washington State Legislature, SB 6346 (Chapter 238, 2026 Laws); Mississippi Free Press, Mississippi income tax phase-down (March 2025). Verified September 28, 2026.
A top rate applies only to income above its threshold. California’s 13.3% starts at $1,000,000, so a worker earning $60,000 there never reaches it. California, Maryland, Massachusetts, New Jersey, New York and D.C. all start their top rate at $1 million or more.
How No-Income-Tax States Raise Money Instead
States without an income tax lean on sales taxes, property taxes, or both. Tennessee and Washington rely most on sales and excise taxes. New Hampshire, which also has no general sales tax, leans on property taxes. The Institute on Taxation and Economic Policy (ITEP), a nonprofit tax research group, measured what families at each income level pay in its Who Pays report.
State and local taxes as a share of income, states that do not tax wages
Source: ITEP, Who Pays? 7th Edition (January 2024), each state's page; tax law as of January 1, 2024.
A middle-income family in Tennessee paid 7.7% of its income in sales and excise taxes, the most in the table. In New Hampshire the same family paid 5.0% in property taxes and 1.2% in sales and excise taxes. Renters pay property tax too, through their rent, and ITEP counts it that way. In Texas, a middle-income family paid 3.5% of income in property taxes; our Texas property tax guide covers the homestead exemption and how to protest an appraisal.
Is Living in a State With No Income Tax Cheaper?
It depends on how much you earn. For the richest families, a state without an income tax usually means a much lower total bill. For low-income families, it often means a higher one, because sales and property taxes take a larger share of a small income.
ITEP found that in every state without a wage income tax, the lowest-income 20% of families pay a higher share of income than the top 1%, 2.8 to 4.9 times as much. Florida has the widest gap. Nationally, the lowest 20% pay 11.4% and the top 1% pay 7.2%, about 58% more for the poorest families.
The gap runs the other way in Minnesota and California, where graduated income taxes do the balancing. A state’s structure, not only its rates, decides who pays.
| Group | Lowest 20% | Top 1% | Change |
|---|---|---|---|
| Florida (no wage tax) | 13.2% | 2.7% | −10.5 pts |
| Washington (no wage tax) | 13.8% | 4.1% | −9.7 pts |
| Tennessee (no wage tax) | 12.8% | 3.8% | −9.0 pts |
| Texas (no wage tax) | 12.8% | 4.6% | −8.2 pts |
| Nevada (no wage tax) | 11.9% | 2.8% | −9.1 pts |
| Illinois (flat tax) | 14.8% | 7.3% | −7.5 pts |
| California (graduated) | 11.7% | 12.0% | +0.3 pts |
| Minnesota (graduated) | 6.2% | 10.5% | +4.3 pts |
Source: ITEP, Who Pays? 7th Edition (January 2024). State and local taxes as a share of family income, tax law as of January 1, 2024.
For a middle-income family, the difference between Texas and California is small. A family in the middle 20% paid 9.9% of its income in Texas and 10.4% in California, a gap of 0.5 points. For the top 1%, the gap is 7.4 points, 4.6% in Texas against 12.0% in California. A middle-income family in Washington paid 10.9%, more than one in California.
Illinois shows that a flat income tax does not fix this on its own. Its lowest 20% paid 14.8%, the highest share among the states we compared, and its top 1% paid 7.3%. ITEP counts 6 states without a wage income tax among its 10 most regressive, meaning systems that take the largest share from the poorest families.
Taxes are only one cost. Housing, insurance and pay levels also differ between states, so compare the whole budget before moving.
Flat Tax vs. Graduated Income Tax
A flat tax charges one rate on all taxable income; a graduated tax charges higher rates on higher slices of income. 15 states use a flat rate and 26 states plus D.C. use brackets, from two brackets up to 12 in Hawaii. Since 2021, 7 states have switched from brackets to a flat rate, according to the Tax Foundation.
Flat rates in 2026 run from 2.5% in Arizona to 5.3% in Idaho. Some flat states, such as Ohio and Mississippi, exempt a first slice of income, so lower earners pay less or nothing.
| Category | Value |
|---|---|
| Idaho | 5.3% |
| Georgia | 5.19% |
| Illinois | 4.95% |
| Utah | 4.5% |
| Colorado | 4.4% |
| Michigan | 4.25% |
| Mississippi | 4% |
| North Carolina | 3.99% |
| Iowa | 3.8% |
| Kentucky | 3.5% |
| Pennsylvania | 3.07% |
| Louisiana | 3% |
| Indiana | 2.95% |
| Ohio | 2.75% |
| Arizona | 2.5% |
Source: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026.
The highest top rates are in states with graduated taxes that start them at high incomes. California tops the list at 13.3% on income over $1,000,000.
| Category | Value |
|---|---|
| California (over $1,000,000) | 13.3% |
| Hawaii (over $325,000) | 11% |
| New York (over $25,000,000) | 10.9% |
| District of Columbia (over $1,000,000) | 10.75% |
| New Jersey (over $1,000,000) | 10.75% |
| Oregon (over $125,000) | 9.9% |
| Minnesota (over $203,150) | 9.85% |
| Massachusetts (over $1,083,150) | 9% |
| Vermont (over $249,700) | 8.75% |
| Wisconsin (over $332,720) | 7.65% |
Source: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Single filer; excludes local and payroll taxes.
Local taxes can add to these rates. The Tax Foundation counts city or county income taxes in states such as Maryland, New York, Ohio and Pennsylvania, and the finder above shows the average where they apply.
Income Tax Changes in 2026
11 states cut their income tax rates for 2026, while Washington moved the other way. The Tax Foundation counts 26 states that cut rates since 2021. Mississippi set a path toward ending its income tax, but only if revenue keeps growing. Washington, long a no-income-tax state, passed a 9.9% tax on household income over $1 million in March 2026 (KUOW).
Where state income tax changes stand
As of September 28, 2026
- Washington, 9.9% tax on income over $1 million In litigation, signed March 30, 2026
SB 6346 taxes household income over $1 million starting with 2028 income. Former Attorney General Rob McKenna has sued to block it, and opponents want a public vote. (source)
- Washington capital gains tax, 9.9% tier Law, tax year 2025 on
ESSB 5813 added 2.9% on long-term capital gains over $1 million, on top of the 7% base rate. (source)
- Mississippi income tax phase-out Law, signed March 27, 2025
HB 1 cut the rate to 4% in 2026 and sets 3% by 2030. Going lower depends on yearly revenue triggers. (source)
- Ohio flat tax, 2.75% Law, Jan. 1, 2026
HB 96 replaced the brackets with one 2.75% rate on income over $26,050. (source)
- North Carolina, 3.99% Law, Jan. 1, 2026
The last scheduled step of the state phase-down, from 4.25%. (source)
- Kentucky, 3.5% Law, Jan. 1, 2026
A revenue-trigger cut from 4%, approved by the legislature in HB 1 (2025). (source)
- Nebraska top rate, 4.55% Law, Jan. 1, 2026
Down from 5.2%, with 3.99% scheduled by 2027. (source)
- Oklahoma, three brackets Law, Jan. 1, 2026
HB 2764 cut six brackets to three and the top rate to 4.5%, with more cuts tied to revenue. (source)
- Indiana, Montana, Georgia, Idaho, Utah cuts Law, 2025-2026
Indiana 2.95%, Montana 5.65%, Georgia 5.19%, Idaho 5.3% and Utah 4.5%. Indiana and Montana cut again in 2027. (source)
- Maryland, two new top brackets Law, tax year 2025 on
Added 6.25% and 6.5% brackets for high earners and a 2% capital gains surtax. (source)
- New Hampshire interest and dividends tax Ended, repealed as of 2025
The last tax on individual income in the state is gone. (source)
- Michigan millionaire surtax initiative Paused, dropped March 2026
Invest in MI Kids ended its 2026 drive for a 5% school surcharge on income over $1 million ($500,000 for single filers) and plans to try in 2028. (source)
Source: Tax Foundation; Washington Department of Revenue; The Spokesman-Review; Mississippi Free Press; Michigan Advance
Washington’s new tax would reach about 20,000 households and raise about $3 billion a year, with the first payments due in 2029 (KUOW). Supporters direct the money to child care, tax credits for low-income families and sales tax breaks. Opponents argue the state constitution does not allow it and are fighting it in court.
If You Are Moving, Working Remotely or Retiring
Your state income tax depends on where you live and where you work, so check both before a move. Open the situation closest to yours. This is general information, not tax advice.
What to check, by situation
Open the one closest to yours.
I am thinking of moving to a state with no income tax
- Look up both states in the finder above and work out what you pay in income tax now.
- Add the other side: the sales tax rate where you would shop and the property tax on the home you would buy or rent.
- Compare housing, insurance and pay for your job in both places, not only taxes.
- In the year you move, expect to file a part-year return in any state that taxes income.
ITEP found a middle-income family paid 9.9% of income in state and local taxes in Texas and 10.4% in California. The savings from no income tax are largest at the top.
I work remotely for an employer in another state
- Find out which state your employer withholds tax for. It should match where you live and work.
- Ask the revenue departments of both states how they treat remote workers. Rules differ from state to state.
- If two states tax the same income, ask your home state about a credit for tax paid to the other state.
I am retiring and choosing where to live
- Check how each state taxes pensions, retirement account withdrawals and Social Security. The eight states with no income tax do not tax any of them.
- Weigh property taxes if you will own a home. In New Hampshire and Texas, property taxes take a large share of income for middle-income families.
- Weigh sales taxes if most of your income goes to spending. They take a larger share of smaller incomes.
- Read our guide to the projected Social Security cut before you set your budget.
ITEP found a middle-income family in New Hampshire paid 5.0% of income in property taxes, against 1.2% in sales and excise taxes.
The Debate Over Cutting State Income Taxes
Supporters of cutting or ending income taxes say it makes states more competitive and keeps mobile workers and businesses. The Tax Foundation’s 2026 State Tax Competitiveness Index ranks Wyoming, South Dakota, New Hampshire, Alaska and Florida as its top five, and 7 of its top 10 do not tax wages. The report says “the absence of a major tax is a common factor” among its leaders, and cites research that inventors, entrepreneurs and very high earners move in response to tax changes.
Critics say the cuts shift taxes onto lower-income families and cost states money without drawing many people. ITEP’s data shows the lowest-income families pay the highest shares where there is no income tax. The Center on Budget and Policy Priorities (CBPP), a policy research group, reviewed the migration evidence in 2023:
- 68% of people who moved to another state in 2019-20 gave jobs or family as the main reason, in a Census Bureau survey.
- The yearly share of people moving between states fell from about 3% in the 1980s to about 1.5%, even as tax gaps between states widened.
- After California raised taxes on millionaires in 2012, one study found 535 of about 67,000 millionaire households left, costing 4.2% of the expected revenue.
Both sides’ evidence points one way on who moves for taxes: when anyone does, it is mostly very high earners. They disagree about how much those moves matter for a state’s economy and budget.
Common Questions About State Income Taxes
Which states have no income tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming have no individual income tax in 2026. Washington taxes only capital gains, so 9 states do not tax wages. Washington’s new tax on income over $1 million starts with 2028 income if it survives a court challenge.
Is it cheaper to live in a state with no income tax?
It depends on your income. ITEP found every state without a wage income tax charges its lowest-income families a larger share of income than its richest 1%. A middle-income family in Texas paid 9.9% of income in state and local taxes, against 10.4% in California. Housing and other costs are part of the math too.
Which states have a flat income tax?
15 states have a flat income tax in 2026: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, North Carolina, Ohio, Pennsylvania and Utah. Rates run from Arizona’s 2.5% to Idaho’s 5.3%.
Which state has the highest income tax?
California, with a top rate of 13.3% on income over $1,000,000 for a single filer. Most Californians pay far less, because that rate applies only to income above the threshold.
How does Texas pay for government without an income tax?
Texas pays for its state and local governments mainly with sales and property taxes. ITEP found a middle-income Texas family paid 6.2% of income in sales and excise taxes and 3.5% in property taxes, and the lowest-income families paid a larger share than the top 1%.
What You Can Do
- Look up your state’s rate. Use the state finder above, then check your state revenue department for this year’s forms.
- Compare total taxes, not one tax. Before a move, add income, sales and property taxes for your income level, and then housing costs.
- Track bills in your legislature. Most of the 2026 changes started as state bills. Your state legislators vote on the next ones; our letter-writing guide shows how to reach them.
- Vote on tax measures. Check your November 3 ballot for tax questions, and make a plan with our voter registration guide.
- Ask who pays. When a tax cut is proposed, ask your legislators for a breakdown by income group, like the ones ITEP and state fiscal offices publish.