State rankings · Tax year 2025–2026
State Income Tax Rankings
Which states take the most — and least — from your paycheck after federal tax is paid, from the nine zero-income-tax states to progressive top rates above 13%.
- 9
- States with no income tax
- 13.3%
- Highest top rate (California)
- 3.05%
- Lowest flat rate (Indiana)
The bottom line
Nine states levy no income tax on wages at all; among the rest, statutory top rates run from a 3.05% flat rate in Indiana to California's 13.3% — but most residents pay well below their state's headline rate.
- 9
- states, $0 income tax on wages
- 13.3%
- top rate, California (highest)
- 3.05%
- lowest flat rate (Indiana)
- $10,000
- federal SALT deduction cap
State income tax is only one layer — property, sales, and local taxes can fully offset a low income-tax state's advantage.
Highest top marginal state income-tax rates
Top statutory rate (selected states)
| State | State Income Tax | Avg Effective | Notes |
|---|---|---|---|
| Alaska | None | 0.0% | No state income tax. Permanent Fund dividend offsets some costs. |
| Florida | None | 0.0% | No state income tax. Relies on sales tax and tourism revenue. |
| Nevada | None | 0.0% | No state income tax. Gaming and tourism fund state services. |
| South Dakota | None | 0.0% | No state income tax. Low overall tax burden statewide. |
| Texas | None | 0.0% | No state income tax. Property taxes are above the national average. |
| Washington | None | 0.0% | No state income tax on wages. Capital gains tax at 7% enacted 2021. |
| Wyoming | None | 0.0% | No state income tax. Mineral extraction revenue subsidizes services. |
| Tennessee | None | 0.0% | Hall income tax on dividends and interest fully repealed in 2021. |
| New Hampshire | None | 0.0% | No tax on wages. Interest and dividends tax phasing out by 2025. |
| Colorado | 4.40% | 4.4% | Flat rate on federal taxable income. Rate reduced from 4.55% in 2024. |
| Illinois | 4.95% | 4.95% | Flat rate on net income. Property taxes also among the highest nationally. |
| Indiana | 3.05% | 3.05% | Flat rate. County income taxes add 0.5% to 3.38% on top. |
| Michigan | 4.25% | 4.25% | Flat rate on adjusted gross income. City taxes may apply in Detroit and others. |
| North Carolina | 4.50% | 4.50% | Flat rate. Scheduled to phase down to 3.99% by 2027. |
| Pennsylvania | 3.07% | 3.07% | Flat rate on taxable income. Local earned-income taxes add 1–3% in many municipalities. |
| Utah | 4.65% | 4.65% | Flat rate. Tax credits available for dependents and certain other situations. |
| California | 1–13.3% | 9.3% | Progressive brackets. Top rate of 13.3% is the highest state rate in the U.S. |
| New York | 4–10.9% | 7.0% | Progressive brackets. NYC residents pay an additional 3.078% city tax. |
| New Jersey | 1.75–10.75% | 6.4% | Progressive brackets. Property taxes highest in the nation on average. |
| Hawaii | 1.4–11% | 7.2% | Progressive brackets. High cost of living plus state tax burden. |
Methodology
Rates are sourced from state revenue department publications for tax year 2025–2026. "Avg Effective" shows a representative rate for a median-income filer — for flat-tax states this equals the statutory rate; for progressive states it approximates the rate at the state's median household income, so it sits well below the headline top rate. Rankings are illustrative and do not account for deductions, credits, or local taxes. Use the State Tax Comparison page for the full picture.
What this ranking does not capture
- Local and city taxes — New York City, Philadelphia, Detroit, and others levy earned-income taxes on top of the state rate, sometimes adding 3–4 percentage points.
- Sales tax burden — Tennessee and Washington have no income tax but combined sales taxes above 9%, which hits lower-income households harder as a share of earnings.
- Property tax variation — Texas, New Jersey, and Illinois have among the highest property tax rates, which can exceed $8,000/year on a median home, offsetting income-tax savings.
- Federal deductibility — the $10,000 SALT deduction cap limits how much state and local tax you can deduct on your federal return, affecting the true after-federal cost of state taxes.
What to do with this
A low-income-tax state isn't automatically a low-tax state.
- Model your federal bill first — it dwarfs state tax for most households. Federal tax calculator
- See how state burden layers on top of the federal brackets. State tax comparison
- Check how the $10,000 SALT cap limits your federal deduction. SALT cap guide
Figures are statutory rates and representative effective rates from state revenue departments for 2025–2026; they exclude local, sales, and property taxes.