State Income Tax Rates 2026
Current individual income tax rates for all 50 states and D.C. Includes flat rates, bracket ranges, and the 9 states with no income tax.
Understanding State Income Taxes in 2026
State income tax is levied on individual wages, salaries, and self-employment income by the state where you work, and sometimes where you live, if different. Unlike federal income tax, state rates vary dramatically: from zero in Texas and Florida to over 13% at the top bracket in California.
Most states use a progressive bracket system similar to the federal model. A smaller number use a flat rate, applying the same percentage to all taxable income regardless of amount. Understanding these differences matters for payroll withholding, relocation decisions, and compensation planning.
9 States With No Income Tax
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming levy no state income tax on wages. New Hampshire taxes interest and dividend income only at 3%.
Flat Rate States
Illinois (4.95%), Michigan (4.25%), Pennsylvania (3.07%), Utah (4.55%), Colorado (4.4%), and others apply a single rate to all taxable income, simple to calculate but can be regressive for lower earners.
Highest Rate States
California tops at 13.3% for income over $1M, followed by Hawaii (11%), New Jersey (10.75%), Oregon (9.9%), and Minnesota (9.85%). New York City residents pay an additional 3.876% local tax.
Local Income Taxes
Some cities add their own tax on top of state rates: New York City (up to 3.876%), Philadelphia (3.75% residents), Detroit (2.4%), and others. Always verify local rules for accurate withholding.
How State Income Taxes Work for Employers and Employees
Employers are responsible for withholding state income tax from employee paychecks and remitting it to the applicable state revenue agency on a schedule the state determines (monthly, quarterly, or annually). Each state publishes its own withholding tables and employee forms, the equivalent of the federal W-4. Bracket and rate data on this page is sourced from the Tax Foundation's annual state tax data.
For remote employees working across state lines, employers may owe withholding obligations in states where the employee physically works, not necessarily where the company is headquartered. Nine states have no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Moving to one of these states eliminates one payroll withholding obligation for the employer and can meaningfully reduce a remote worker's personal tax burden.