Highest and Lowest State Income Tax Rates in 2026

How much of your paycheck goes to state income tax depends entirely on where you live. Some states take over 13 cents of every dollar you earn at the top bracket. Others take nothing at all. And the difference can add up to thousands of dollars per year.

In this guide, we’ll rank every state’s income tax rate from highest to lowest, explain the difference between flat and progressive tax systems, and highlight which states recently changed their rates for 2026.

The Big Picture: Who Taxes Income and Who Doesn’t

As of 2026, 41 states and Washington, D.C. levy a tax on personal income. The remaining 9 states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — charge no income tax on wages. (For a deep dive into those nine, read our guide to no-income-tax states.)

Among the states that do tax income, rates range from as low as 1.95% in North Dakota to as high as 13.3% in California. But the “top marginal rate” only tells part of the story. Let’s break it down.

Top 10 Highest State Income Tax Rates

These are the states with the highest top marginal rates — the rate applied to income in the highest bracket. Most workers won’t pay this rate on all their income (more on that below), but high earners will feel the impact.

Source: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026

Top 10 Lowest State Income Tax Rates (Excluding 0% States)

If you want to live in a state that does tax income but keeps rates low, these are your best options. All of these states charge less than 4% at the top bracket.

Flat Tax vs. Progressive Tax: What’s the Difference?

When you see a state’s income tax rate, it’s important to understand what kind of system that state uses. There are two main types:

Here’s why this matters: a state with a 9.9% top rate might actually tax a $75,000 salary at an effective rate of only 6% to 7%, because only the income in the highest bracket is taxed at 9.9%. Meanwhile, a flat-tax state at 4.95% taxes every dollar at that rate. Depending on your income level, the flat-tax state could actually take a larger share of your pay.

All 50 States + D.C.: Income Tax Rates Ranked

Here is the complete list of every state’s top marginal income tax rate for 2026, sorted from highest to lowest. Click any state name to calculate your paycheck.

Sources: Tax Foundation, Federation of Tax Administrators. Rates as of January 2026.

States That Recently Lowered Their Income Tax Rates

There’s a clear trend across the country: states are cutting income tax rates. Some are moving to flat taxes, while others are simply trimming their existing brackets. Here are the most notable recent changes:

• Arizona — Collapsed its progressive system (up to 4.5%) into a single 2.5% flat tax starting in 2023. One of the biggest cuts in recent history. Calculate your Arizona paycheck.
• North Carolina — Gradually lowering its flat rate from 5.25% (2022) toward a target of 3.99% by 2027. Currently at 4.50% for 2026. Calculate your North Carolina paycheck.
• Iowa — Consolidated 9 brackets into 4, and the top rate dropped from 8.53% to 5.70% for 2026, with a goal of reaching 3.9%. Calculate your Iowa paycheck.
• Arkansas — Cut its top rate from 4.4% to 3.9% for 2026. The state has signaled it wants to eventually reach 0%. Calculate your Arkansas paycheck.
• Kentucky — Moved from a progressive system to a 4.0% flat tax in 2023, with a trigger mechanism to lower it further when revenue targets are met. Calculate your Kentucky paycheck.
• Georgia — Transitioning from progressive brackets to a flat 5.39% rate for 2026, with future reductions planned. Calculate your Georgia paycheck.
• Colorado — Reduced its flat rate from 4.55% to 4.40% starting in 2024 through a voter-approved ballot measure. Calculate your Colorado paycheck.

According to the Tax Foundation, more than 20 states have cut or reformed their income taxes since 2021. The competition among states to attract workers and businesses with lower tax rates shows no signs of slowing down.

What Does This Mean for Your Paycheck?

Your state income tax rate directly affects your take-home pay. Here’s a quick example to put the numbers in perspective:

That’s a difference of nearly $4,000 per year between the highest-tax and zero-tax states. Over a 10-year career, that adds up to $40,000 — enough for a down payment on a house in many parts of the country.

But remember: income tax is just one piece of the puzzle. States with no income tax often make up the difference with higher sales taxes, property taxes, or fees. Always look at the full picture before deciding where to live or work. Our no-income-tax states guide covers this in detail.

The Bottom Line

State income tax rates vary wildly — from California’s 13.3% top rate down to zero in nine states. The trend is clearly moving toward lower rates, with more than 20 states cutting taxes since 2021. Whether you’re evaluating a job offer, planning a move, or just curious where your state stands, knowing these rates helps you understand your paycheck better.

The most important number isn’t your state’s top rate — it’s what you actually take home after all taxes. That’s exactly what our calculators show you.

Sources

• Tax Foundation — State Individual Income Tax Rates and Brackets for 2026
• Federation of Tax Administrators — State Tax Rates
• IRS.gov — Tax Reform Information
• Bureau of Labor Statistics — Occupational Employment and Wage Statistics
• Arizona Department of Revenue — Individual Income Tax
• North Carolina Department of Revenue — Individual Income Tax