States with the highest (& lowest) tax rates in 2026
Where you live determines how much income stays in your pocket. State income tax rates span more than 13 percentage points, and for high earners, that gap is real money every April.
The divide has never been easier to act on.
Visual Capitalist mapped top marginal rates across all 50 states using Tax Foundation data as of January 1, 2026, reflecting the highest bracket for single filers and excluding federal and municipal taxes.
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California
Top marginal rate: 13.3%. The highest state income tax rate in the country applies to earnings of $1 million or more. A proposed 5% billionaire wealth tax could affect roughly 200 additional individuals.
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Hawaii
Top marginal rate: 11.0%. The second-highest rate nationally under a graduated structure. Its cost of living makes the total burden among the steepest in the country.
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New York
Top marginal rate: 10.9%. One of only three states above 10% under a graduated structure. NYC residents also pay a city income tax on top of this.
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New Jersey
Top marginal rate: 10.8%. Fourth-highest nationally and among the most populous states in the top tier. Its budget is among the most expensive public service infrastructures in the country.
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Oregon
Top marginal rate: 9.9%. Ties Minnesota for fifth and is the highest rate in the Pacific Northwest. No sales tax means income taxes carry a heavier revenue share.
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Minnesota
Top marginal rate: 9.9%. Ties Oregon and holds the highest rate in the Upper Midwest.
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Massachusetts
Top marginal rate: 9.0%. A voter-approved 4% surtax on income above $1 million brings the effective top rate to 9.0%, up from a previously flat structure.
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Vermont
Top marginal rate: 8.8%. One of six New England states in the top tier. Its graduated system applies the rate to the highest income bracket for single filers.
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Wisconsin
Top marginal rate: 7.7%. The highest rate among Great Lakes states under a graduated structure.
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Maine
Top marginal rate: 7.2%. Part of New England’s consistent pattern of above-average rates.
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Connecticut
Top marginal rate: 7.0%. Rounds out the states above 7% under a graduated system.
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Delaware
Top marginal rate: 6.6%. Ranks thirteenth nationally under a graduated rate system. Its rate contrasts with its pro-business reputation for corporations.
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Maryland
Top marginal rate: 6.5%. County-level income taxes add meaningfully to the state rate. Combined state and local rates can run significantly higher by location.
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South Carolina
Top marginal rate: 6.0%. Ties Rhode Island and has been steadily reducing its top rate. It is among the Southern states that are gradually reducing their income tax.
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Rhode Island
Top marginal rate: 6.0%. Ties South Carolina, in line with the regional above-average pattern.
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New Mexico
Top marginal rate: 5.9%. Seventeenth highest, ahead of its immediate western and southern neighbors. It sits in the upper portion of the national middle tier.
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Virginia
Top marginal rate: 5.8%. A large federal workforce near Washington drives its elevated rate. The graduated system applies the top rate to the highest bracket for single filers.
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Montana
Top marginal rate: 5.7%. Nineteenth highest nationally under a graduated system. Growth in resort towns like Bozeman has raised their fiscal profile.
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Kansas
Top marginal rate: 5.6%. Ranks twentieth in the upper portion of the national middle tier.
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Idaho
Top marginal rate: 5.3%. Boise-area growth has reshaped the state’s fiscal landscape, driven in part by migration from higher-cost western states.
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Georgia
Top marginal rate: 5.2%. Among states signaling a gradual move toward lower rates. Legislative discussions on further cuts continue as it competes for residents.
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Alabama
Top marginal rate: 5.0%. Ties Illinois under a graduated structure in the lower-cost South. Both income and property taxes are modest by regional standards.
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Illinois
Top marginal rate: 5.0%. Ties Alabama, but operates a flat rate applied to all income regardless of earnings. Every dollar of taxable income is subject to the same 5.0%.
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West Virginia
Top marginal rate: 4.8%. Has made legislative moves to reduce its income tax burden. The cuts are part of a push to improve economic competitiveness.
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Missouri
Top marginal rate: 4.7%. Sits in the lower portion of the national middle tier.
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Nebraska
Top marginal rate: 4.6%. Twenty-seventh and actively phasing its rate down through tax reform legislation. The reductions are part of a long-term competitiveness strategy.
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Utah
Top marginal rate: 4.5%. Ties Oklahoma, but operates a flat rate applied to all taxable income. Every dollar of income is subject to the same flat 4.5%.
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Oklahoma
Top marginal rate: 4.5%. Ties Utah under a graduated structure at the lower end of the middle tier.
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Colorado
Top marginal rate: 4.4%. All taxable income for single filers is subject to the same flat rate. Its flat structure is administratively simpler than graduated systems.
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Michigan
Top marginal rate: 4.3%. Also, a flat-rate state applying 4.3% equally to all taxable income. The rate does not change regardless of earnings level.
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Mississippi
Top marginal rate: 4.0%. Ties North Carolina and has passed legislation targeting income tax elimination by 2040. The goal is contingent on economic benchmarks being met.
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North Carolina
Top marginal rate: 4.0%. Ties Mississippi under a flat rate and has steadily reduced it over the past decade. It has been among the Southeast’s most consistent tax-cutters.
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Arkansas
Top marginal rate: 3.9%. One of the more active rate-cutters nationally in recent years.
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Iowa
Top marginal rate: 3.8%. Significant tax reform has brought its rate down substantially, moving Iowa from the upper middle tier to the lower range nationally.
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Kentucky
Top marginal rate: 3.5%. A flat-rate state phasing its percentage down through revenue-based benchmarks. Each cut activates only when specific fiscal targets are met.
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Pennsylvania
Top marginal rate: 3.1%. One of the lower flat rates nationally, applied equally to all taxable income. The flat rate does not vary with earnings level.
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Indiana
Top marginal rate: 3.0%. Ties Louisiana under a flat rate, making it competitive among income-tax states. Its rate applies uniformly to all taxable income.
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Louisiana
Top marginal rate: 3.0%. Ties Indiana after reducing its rate in a broader tax overhaul. The graduated structure applies the rate to the top income bracket.
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Ohio
Top marginal rate: 2.8%. Its low top rate keeps it competitive among Midwestern income-tax states.
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Arizona
Top marginal rate: 2.5%. Ties North Dakota under a flat rate after years of legislative cuts. The cuts aimed at attracting residents from higher-tax states.
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North Dakota
Top marginal rate: 2.5%. Ties Arizona and holds the lowest rate among all states that still levy income tax. It is the lowest rate among all states that levy income tax.
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Alaska
Top marginal rate: no income tax. Alaska levies no income tax, funded through oil revenues and the Permanent Fund. The Fund pays annual dividends directly to residents.
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Florida
Top marginal rate: no income tax. Florida levies no income tax and draws high-income migrants from California, New York, and New Jersey. Zero income tax and large metro areas have driven sustained population growth.
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Nevada
Top marginal rate: no income tax. Nevada levies no income tax, relying on sales and gaming revenues. It has attracted businesses and residents relocating from California.
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New Hampshire
Top marginal rate: no income tax. New Hampshire levies no income tax on wages, funded through property taxes. It is New England’s only no-income-tax state.
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South Dakota
Top marginal rate: no income tax. South Dakota levies neither income tax nor capital gains tax, ranking it among the most tax-competitive states in the country.
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Tennessee
Top marginal rate: no income tax. Tennessee completed its transition to zero in 2021 by eliminating the Hall Tax on investment income and now relies primarily on sales taxes for revenue.
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Texas
Top marginal rate: no income tax. Texas levies no income tax and ranks among the largest beneficiaries of migration from high-tax states. Zero income tax and strong job growth make it a top relocation destination.
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Washington
Top marginal rate: no income tax. Washington levies no income tax on wages, but a 7% capital gains tax applies above $1 million. The rate rises to 9.9% beyond $1 million, an exception to how most states handle capital gains.
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Wyoming
Top marginal rate: no income tax. Wyoming levies no income tax, funded through mineral severance taxes. Its per-capita state budget is among the smallest in the country.
Wrap up
Nine states levy no income tax at all. Remote work has made it easier than ever for top earners to factor state tax rates into where they choose to live.
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