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State Income Tax Rates 2025 and 2026 — All 50 States
State income taxes vary dramatically — nine states impose none at all, while California reaches 13.3% at the top. The difference between living in a no-tax state like Texas and a high-tax state like California can mean $4,000–$12,000 per year for a mid-to-high income earner. Unlike the federal system, not all states use progressive brackets: eleven states tax all income at a flat rate.
States With No Income Tax 2025–2026
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming impose no tax on wages or salary income. New Hampshire taxes only interest and dividend income at a rate phasing out by 2025. Washington imposes a 7% capital gains tax on gains above $262,000 but taxes no wages.
Highest State Income Tax Rates 2025–2026
California tops the list at 13.3% (including the 1% surtax on millionaires). Hawaii reaches 11%, Oregon 9.9%, Minnesota 9.85%, and New Jersey 10.75% for top earners. At the lower end, North Dakota tops out at just 2.64%, and Pennsylvania uses a flat 3.07% with no standard deduction.
Select any state in the calculator above and your estimate will immediately use that state's 2024 brackets, standard deduction, and personal exemptions. To understand the federal side, visit our federal tax brackets guide. For a complete combined estimate, use the main US income tax calculator. If you are self-employed, visit our self-employment tax calculator to include SE tax in your state-level estimate.
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State Income Tax FAQs — 2025 & 2026
Which state has the highest income tax in the US?
California has the highest top marginal state income tax rate at 13.3% — that is the 12.3% top regular rate plus a 1% Mental Health Services Tax surcharge on income over $1 million. Even below millionaire thresholds, California's 9.3% bracket applies to single filers earning over $67,149. Hawaii has the second-highest top rate at 11% on income over $400,000. Both states also impose relatively low standard deductions compared to federal levels, increasing the taxable income base significantly.
Do remote workers owe state income tax to their employer's state?
Generally no — you owe income tax to the state where you physically perform the work. If you're fully remote from your home state, that state taxes your income. However, a handful of states (notably New York, Connecticut, Delaware, Massachusetts, and Arkansas) use a "convenience of employer" rule: if you work remotely by personal choice rather than employer necessity, New York may still tax all your wages as though you worked in New York. This is a nuanced, frequently litigated area. If you've recently moved states, consult a tax professional. Our tax withholding calculator can help identify a potential shortfall.
What is a flat tax state, and is it better?
A flat tax state applies one uniform rate to all taxable income. In 2024, flat-tax states include Arizona (2.5%), Colorado (4.4%), Georgia (5.5%), Idaho (5.8%), Illinois (4.95%), Indiana (3.05%), Kentucky (4.5%), Massachusetts (5%), Michigan (4.25%), Mississippi (4.7%), Pennsylvania (3.07%), and Utah (4.65%). Whether a flat tax is "better" depends on your income level. High earners often prefer flat-tax states over progressive ones like California. But lower-income households may pay a higher percentage than in a progressive state with generous low-income exemptions.
How do state standard deductions compare to the federal amount?
Most states set their own standard deductions, which are often significantly lower than the federal $14,600 (single) / $29,200 (MFJ). For example, Alabama allows only $2,500 (single) and Maryland only $2,350. Some states like Illinois, Indiana, and Pennsylvania have no standard deduction at all but provide personal exemptions instead. A few states — Colorado, Idaho, Iowa, and New Mexico among them — have adopted the federal standard deduction. This means your state taxable income can be substantially higher than your federal taxable income even with the same gross income. Our calculator accounts for each state's specific deduction rules.
Last updated: January 2024
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