State Income Tax Comparison Chart 2026: Rates Ranked and $80k Take-Home

2026 State Income Tax Comparison Chart: Highest to Lowest

For paycheck comparisons, the most useful chart is the top state wage-income tax rate plus the structure that affects take-home pay. This table ranks all 50 states plus Washington, D.C. by the highest broad wage/salary income tax rate shown in 2026 state tax schedules. Washington is listed as 0% for wage income because its separate capital gains tax does not apply to ordinary W-2 wages.

Source basis: Tax Foundation 2026 state individual income tax rates and brackets plus official state updates for newly changed rates, spot-checked June 15, 2026. This chart ranks broad paycheck wage-income tax rates for comparison; actual tax bills depend on taxable income, filing status, deductions, credits, local taxes, and non-wage income.

2026 State Income Tax Changes

The biggest freshness change for this page is the 2026 rate-cut wave. Ten states now show individual income tax reductions for 2026 planning after Arkansas's special-session update and Georgia's HB 463 update. Several changes materially affect take-home pay comparisons: Arkansas moved to a 3.7% top rate, Georgia moved to 4.99%, Ohio moved to a 2.75% flat nonbusiness rate above $26,050, and Oklahoma reduced its top rate to 4.50% while consolidating six brackets into four.

Source basis: official state revenue/tax pages for newly changed rates plus Tax Foundation 2026 state individual income tax rates as a secondary cross-state benchmark; checked June 15, 2026. Rates shown are top or flat headline rates, not every bracket, deduction, credit, or local add-on.

Why State Income Tax Matters More Than You Think

State income tax is one of the largest controllable factors affecting your take-home pay. While federal tax brackets are the same everywhere, state taxes create dramatic differences in what workers actually keep. Two people earning identical $85,000 salaries can have take-home pay differences of $3,000 to $7,000 per year depending on state, city, filing status, deductions, and local wage taxes.

The rise of remote work has made state tax arbitrage more accessible than ever. Workers in high-tax states like California, New York, and New Jersey are relocating to no-tax or low-tax states like Florida, Texas, and Tennessee, effectively giving themselves a significant raise without changing jobs or employers.

However, state income tax is just one piece of the total tax puzzle. Some no-income-tax states compensate with higher property taxes, sales taxes, or fees. A true comparison requires looking at the complete tax burden. That said, for high earners, income tax is typically the dominant factor, making state choice a critical financial decision.

Use our State Tax Calculator to see exactly how much state income tax you owe based on your salary, filing status, and state of residence.

No-Income-Tax States for Paychecks

For ordinary wage and salary paychecks, nine states do not tax W-2 wage income. For strict all-income classification, the clean no-broad-income-tax list is eight states because Washington taxes certain long-term capital gains. For paycheck planning, the practical list is:

The important nuance is Washington. A software engineer or nurse earning only W-2 wages generally sees no Washington wage income tax, but an investor with large long-term capital gains may owe Washington capital gains tax at 7% on the first $1 million of taxable Washington gains and 9.9% above $1 million. That is why a paycheck comparison and an all-income tax comparison can produce different "no income tax states" lists.

These states fund government services through alternative revenue sources. Texas and New Hampshire rely heavily on property taxes. Washington and Tennessee lean on sales and excise taxes. Nevada and Alaska benefit from tourism-related taxes and natural resource revenues. A low paycheck tax does not automatically mean a low total household tax burden.

For a single worker earning $100,000, moving from California to Texas or Florida can save roughly $5,000 per year in state income tax before local costs, housing, insurance, sales taxes, and property taxes. Calculate your specific savings with our Cost of Living Calculator.

No-Income-Tax State Trade-Offs

Searches for "best states for taxes" often stop at the 0% income-tax list, but the real decision is income tax plus housing, insurance, property tax, sales tax, and job-market pay. Use this table to decide what to check after the headline paycheck tax looks attractive.

Comparison note: this table follows the same caution used by Tax Foundation burden data and cost-of-living comparisons: a 0% wage income tax can still lose to a higher-cost housing or insurance market. Run both net pay and cost of living before treating a move as a raise.

Flat Tax States: Simple but Steady

Fifteen states use a single-rate individual income tax structure in 2026. "Flat" does not always mean every dollar of gross pay is taxed: deductions, exemptions, credits, and threshold rules still matter, and local income taxes can apply in states such as Indiana, Kentucky, Michigan, Ohio, and Pennsylvania.

The trend toward flat taxes has accelerated in recent years. Arizona is at 2.50%, Ohio moved to 2.75% above its exempt threshold in 2026, Indiana dropped to 2.95%, North Carolina reached 3.99%, and Georgia moved to a 4.99% flat rate after HB 463 and Georgia DOR 2026 updates.

For middle-income earners ($50,000-$100,000), lower flat-rate states like Arizona, Ohio, Indiana, Pennsylvania, Kentucky, Iowa, and North Carolina often offer the best balance of predictable taxation with minimal impact on take-home pay. Use our Paycheck Calculator to model your exact paycheck in any flat-tax state.

Highest Tax States: Where You Pay the Most

Several states impose top marginal income tax rates exceeding 9%, significantly reducing take-home pay for higher earners. These states typically use progressive tax systems with many brackets:

California's 13.3% top rate is the highest in the nation. However, this rate only applies to income above $1 million. For a worker earning $100,000 in California, the effective state tax rate is closer to 5.8%, not 13.3%. The progressive structure means most workers pay far less than the headline top rate suggests.

Oregon deserves special attention because its top rate of 9.9% kicks in at just $125,000 for single filers, a much lower threshold than California or New York. This makes Oregon disproportionately expensive for middle-to-upper-middle income workers. Additionally, Oregon has no sales tax, meaning income tax is the primary revenue mechanism.

New York City residents face a particularly heavy burden: state tax (up to 10.9%) plus city tax (up to 3.876%) can push the combined rate above 14.7% for top earners, the highest combined state/local income tax rate in the country.

See how high-tax states reduce your paycheck compared to alternatives with our Salary Calculator.

Real Take-Home Pay Comparison: $80,000 Salary

Headline tax rates can be misleading. What matters is the effective rate you actually pay. Here is a 2026 planning comparison for a single filer earning $80,000 in wages. Federal income tax uses the 2026 standard deduction of $16,100, FICA uses the 2026 Social Security wage base, and state/local amounts are rounded estimates for comparison.

In this simplified wage example, the spread between a zero-wage-tax state and New York City is about $6,700 per year, or roughly $558 per month. Oregon is also expensive at this income level because its 8.75% bracket starts far below the six-figure mark. Exact results change with deductions, credits, local taxes, pre-tax benefits, and filing status.

Our Net Pay Calculator provides a detailed breakdown for any state, salary, and filing status so you can see your exact take-home pay. For a deeper federal tax breakdown including marginal brackets, deductions, and credits, see LevyIO's Income Tax Calculator. For downloadable all-state bracket data behind tax-rate tables, use LevyIO's 2026 state income tax dataset.

Local Income Taxes: The Hidden Extra Layer

Several states allow cities and counties to levy their own income taxes on top of the state tax. These local taxes can add 1-4% to your total tax burden and are often overlooked when comparing states:

• New York City: 3.078% to 3.876% on top of New York State taxes (applies only to NYC residents)
• Philadelphia: 3.75% wage tax for residents (3.44% for non-residents who work in the city)
• Detroit: 2.4% for residents, 1.2% for non-residents working in Detroit
• St. Louis: 1% earnings tax for those who live or work in the city
• Ohio cities: Many cities charge 1.5-3% local income tax (Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%)
• Maryland counties: All 23 counties and Baltimore City levy piggyback taxes from 2.25% to 3.2%
• Indiana counties: Local income taxes range from 0.5% to 3.38% depending on the county

Ohio is particularly noteworthy because its municipal income tax system is the most extensive in the nation, with over 600 municipalities levying local income taxes. A worker living in one Ohio city and working in another may owe taxes to both, though credits usually prevent double taxation.

Always check for local income taxes when evaluating a job in a new city. Our Salary to Hourly Converter helps you understand the true hourly value of your salary after accounting for all tax layers.

Remote Work and State Tax Implications

The explosion of remote work since 2020 has created complex state tax situations for millions of workers. The general rule is that you owe state income tax where you physically perform the work, but several important exceptions and complications exist.

The "Convenience of the Employer" Rule

Several states tax remote workers based on the employer's location, even if the employee works from another state. New York is the most aggressive, taxing remote workers who work for New York-based employers unless the remote arrangement is for the employer's "necessity" rather than the employee's "convenience." Connecticut, Delaware, Nebraska, and Pennsylvania have similar rules. This can create situations where a remote worker in New Hampshire (no income tax) owes New York state tax because their employer is headquartered in Manhattan.

Reciprocity Agreements

Some neighboring states have reciprocity agreements that prevent double taxation. If you live in New Jersey but work in Pennsylvania, for example, you only pay tax to your home state (New Jersey). Major reciprocity pairs include: Virginia/DC/Maryland, Illinois/Iowa/Kentucky/Michigan/Wisconsin, Pennsylvania/New Jersey, and several others. These agreements simplify filing and prevent workers from owing taxes to two states.

Strategies for Remote Workers

• Verify your employer does not have nexus in a high-tax state that could create tax obligations
• Track days worked in each state if you travel or split time between locations
• Consider establishing residency in a no-income-tax state if your employer supports fully remote work
• Consult a multi-state tax professional if your situation involves more than two states

Compare how different state choices affect your remote work income using our Contract vs Full-Time Calculator, which factors in state tax differences.

Total Tax Burden: Looking Beyond Income Tax

Comparing states solely on income tax tells an incomplete story. A state with no income tax may compensate with higher sales taxes, property taxes, or other fees. Here is how the overall tax burden compares when factoring in all major taxes:

• No-income-tax does not mean no tax: Texas and New Hampshire rely heavily on property taxes, while Washington and Tennessee rely more on sales and excise taxes.
• High-income-tax states can still vary by household: California, New York, New Jersey, Oregon, and Hawaii look expensive on income-tax rates, but actual burden depends on whether you rent or own, your deductions, local taxes, and income mix.
• Use total-burden studies carefully: Tax Foundation's burden methodology uses state and local taxes paid by residents as a share of income, while other rankings may use different household assumptions. Treat those rankings as context, not as your personal bill.

The key insight is that for high-income earners ($150,000+), income tax often becomes the largest state-level variable, so no-wage-tax states can produce large paycheck gains. For lower-income earners, property taxes and sales taxes matter more, and the optimal state depends on individual circumstances like homeownership status and spending patterns.

Factor in cost of living alongside taxes with our Cost of Living Calculator to get the most complete picture of which states offer the best financial outcome for your situation. Also explore how inflation erodes your purchasing power with our Salary Inflation Calculator.

Frequently Asked Questions