Complete 2026 ranking of every US state by top marginal tax rate, effective rate on $75K income, SALT deduction impact, and flat vs graduated structure.
By Ziv Shay | Published April 17, 2026 | Sourced from state Departments of Revenue
State income tax is the second-largest line item on most Americans' tax returns after federal income tax. For a single filer earning $75,000 in California, state tax alone runs over $3,200 — money that simply does not exist for an identical earner in Florida, Texas, or Washington. Over a 40-year career, the cumulative state tax difference between a no-tax state and a high-tax state can exceed $250,000.
The OBBBA's 2026 SALT deduction cap increase from $10,000 to $40,000 dramatically changes this calculus for federal itemizers. If you live in a high-tax state and own a home with significant property taxes, you can now deduct up to $40,000 of combined state/local taxes on your federal return — recapturing a benefit that was capped for seven years under the TCJA.
This page provides the complete ranked dataset, the effective rate on a typical $75,000 income, SALT savings by metro, and a recommendation framework for choosing the most tax-efficient state.
States ranked by top marginal tax rate for 2026 tax year. "Effective Rate on $75K" shows actual state tax as a percentage of $75,000 gross income for a single filer, using each state's standard deduction. Click any state to see full brackets and the state calculator.
| Rank | State | Abbr | Top Rate | Effective on $75K | Type |
|---|---|---|---|---|---|
| 1 | California | CA | 13.3%* | 4.15% | Graduated |
| 2 | Hawaii | HI | 11.00% | 7.01% | Graduated |
| 3 | New York | NY | 10.90% | 4.69% | Graduated |
| 4 | New Jersey | NJ | 10.75% | 3.54% | Graduated |
| 5 | District of Columbia | DC | 10.75% | 4.71% | Graduated |
| 6 | Oregon | OR | 9.90% | 8.05% | Graduated |
| 7 | Minnesota | MN | 9.85% | 4.87% | Graduated |
| 8 | Vermont | VT | 8.75% | 4.02% | Graduated |
| 9 | Wisconsin | WI | 7.65% | 3.88% | Graduated |
| 10 | Maine | ME | 7.15% | 5.11% | Graduated |
| 11 | Connecticut | CT | 6.99% | 4.50% | Graduated |
| 12 | Delaware | DE | 6.60% | 4.96% | Graduated |
| 13 | South Carolina | SC | 6.20% | 4.12% | Graduated |
| 14 | Rhode Island | RI | 5.99% | 3.22% | Graduated |
| 15 | Montana | MT | 5.90% | 4.42% | Graduated |
| 16 | New Mexico | NM | 5.90% | 3.57% | Graduated |
| 17 | Nebraska | NE | 5.84% | 4.30% | Graduated |
| 18 | Maryland | MD | 5.75% | 4.52% | Graduated |
| 19 | Virginia | VA | 5.75% | 4.79% | Graduated |
| 20 | Kansas | KS | 5.70% | 4.82% | Graduated |
| 21 | Idaho | ID | 5.70% | 4.59% | Flat |
| 22 | Georgia | GA | 5.39% | 4.53% | Flat |
| 23 | West Virginia | WV | 5.12% | 3.94% | Graduated |
| 24 | Alabama | AL | 5.00% | 4.78% | Graduated |
| 25 | Massachusetts | MA | 5.00% | 5.00% | Flat |
| 26 | Illinois | IL | 4.95% | 4.95% | Flat |
| 27 | Missouri | MO | 4.80% | 3.64% | Graduated |
| 28 | Oklahoma | OK | 4.75% | 4.02% | Graduated |
| 29 | Utah | UT | 4.65% | 4.65% | Flat |
| 30 | Mississippi | MS | 4.40% | 3.68% | Flat |
| 31 | Colorado | CO | 4.25% | 3.42% | Flat |
| 32 | North Carolina | NC | 4.25% | 3.42% | Flat |
| 33 | Michigan | MI | 4.05% | 4.05% | Flat |
| 34 | Kentucky | KY | 4.00% | 3.83% | Flat |
| 35 | Arkansas | AR | 3.90% | 3.33% | Graduated |
| 36 | Iowa | IA | 3.80% | 3.06% | Flat |
| 37 | Ohio | OH | 3.50% | 1.79% | Graduated |
| 38 | Pennsylvania | PA | 3.07% | 3.07% | Flat |
| 39 | Indiana | IN | 3.05% | 3.05% | Flat |
| 40 | Louisiana | LA | 3.00% | 2.42% | Flat |
| 41 | Arizona | AZ | 2.50% | 2.01% | Flat |
| 42 | North Dakota | ND | 1.95% | 1.57% | Flat |
| 43 | Alaska | AK | 0% (none) | 0.00% | No tax |
| 44 | Florida | FL | 0% (none) | 0.00% | No tax |
| 45 | Nevada | NV | 0% (none) | 0.00% | No tax |
| 46 | New Hampshire | NH | 0% (none) | 0.00% | No tax |
| 47 | South Dakota | SD | 0% (none) | 0.00% | No tax |
| 48 | Tennessee | TN | 0% (none) | 0.00% | No tax |
| 49 | Texas | TX | 0% (none) | 0.00% | No tax |
| 50 | Washington | WA | 0% (none) | 0.00% | No tax |
| 51 | Wyoming | WY | 0% (none) | 0.00% | No tax |
*California effective top rate of 13.3% includes the 1% Mental Health Services surtax on income over $1 million. Source: Each state's Department of Revenue, 2026 tax year publications.
See your exact state tax and take-home pay with our Paycheck Calculator or pick your state from the dropdown on our home page.
Under OBBBA, the SALT cap jumped from $10,000 to $40,000. For homeowners in high-tax metros, this can mean deducting $15,000-$22,000 MORE on the federal return than was allowed in 2025. Here is the typical combined SALT burden (state income tax + property tax) for a $150,000 earner in major metros:
| Metro Area | State Income Tax | Property Tax | Combined SALT | OBBBA Benefit vs Old Cap |
|---|---|---|---|---|
| New York, NY | $6,200 | $15,000 | $21,200 | +$11,200 deduction |
| San Francisco, CA | $7,400 | $14,500 | $21,900 | +$11,900 deduction |
| Newark, NJ | $4,100 | $18,200 | $22,300 | +$12,300 deduction |
| Chicago, IL | $4,800 | $11,400 | $16,200 | +$6,200 deduction |
| Boston, MA | $3,750 | $12,800 | $16,550 | +$6,550 deduction |
| Hartford, CT | $5,600 | $9,850 | $15,450 | +$5,450 deduction |
| Austin, TX | $0 | $13,600 | $13,600 | +$3,600 deduction |
| Miami, FL | $0 | $10,800 | $10,800 | +$800 deduction |
Based on a single filer earning $150,000 with median home value for each metro. At a 24% federal marginal rate, each $10,000 of additional SALT deduction saves $2,400 in federal tax.
Use our SALT Deduction Calculator to see your exact OBBBA benefit based on your state income tax and property tax bill.
Nine states charge zero state income tax in 2026. However, these states typically compensate with higher sales tax, property tax, or other revenue mechanisms. The "tax-free" label is misleading if you look at the total tax burden.
| State | State Income Tax | Avg Sales Tax | Property Tax Rank | Trade-off |
|---|---|---|---|---|
| Alaska (AK) | 0% | 1.82% | Medium | Funded by oil revenue & Permanent Fund dividend |
| Florida (FL) | 0% | 7.00% | Medium | High sales tax, tourism-heavy funding |
| Nevada (NV) | 0% | 8.24% | Low | Highest avg sales tax nationally |
| New Hampshire (NH) | 0% | 0% (!) | Very High | #2 in property tax burden nationwide |
| South Dakota (SD) | 0% | 6.40% | Low | Balanced low-tax state |
| Tennessee (TN) | 0% | 9.55% | Low | #1 highest combined sales tax |
| Texas (TX) | 0% | 8.20% | Very High | Top 10 property tax state |
| Washington (WA) | 0%** | 9.38% | Medium | 7% capital gains tax on gains > $270K |
| Wyoming (WY) | 0% | 5.44% | Low | Mineral extraction revenue |
**Washington has no tax on earned income but imposes a 7% capital gains tax on long-term gains exceeding $270,000.
Fourteen states use a flat-tax system — one rate applied to all taxable income. The remaining states (excluding the no-tax nine) use graduated brackets similar to the federal system. The trend in recent years has been toward flat taxes: Georgia, Iowa, Idaho, Kentucky, Louisiana, and North Carolina have all moved to flat systems in the past 5 years.
Top marginal rates make for good headlines but do not reflect what a typical earner actually pays. The effective rate — total state tax divided by gross income — is more useful. For a single filer earning $75,000 and taking the state standard deduction:
| State Tier | Examples | Effective Rate on $75K | Annual State Tax |
|---|---|---|---|
| No-tax states | FL, TX, WA, NV, TN, SD, WY, AK, NH | 0.00% | $0 |
| Very low (<3%) | ND (1.78%), AZ (2.5%), IN (3.05%) | 1.5% – 3.0% | $1,125 – $2,250 |
| Low (3-4.5%) | PA, MI, CO, KY, LA, OH | 3.0% – 4.3% | $2,250 – $3,225 |
| Moderate (4.5-6%) | NC, MA, UT, IL, MO, GA, IA | 4.0% – 5.5% | $3,000 – $4,125 |
| High (6%+) | CA, NY, NJ, OR, HI, MN, DC, WI | 5.0% – 6.5% | $3,750 – $4,875 |
"Tax friendly" depends entirely on your income level, homeownership, retirement status, and spending patterns. Here is a simple framework:
Best: Florida, Texas, Tennessee, Nevada, Washington. Zero state income tax on high earned income is worth $20K-$40K/year vs CA/NY/NJ.
Worst: California, New York (NYC), New Jersey, Hawaii. Combined federal+state marginal rates exceed 50%.
Best: North Dakota (1.95% flat), Arizona (2.5%), Louisiana (3%). Low rates with reasonable standard deductions.
Worst: Oregon (high effective rate on middle-income), Hawaii, Minnesota.
Best: Florida, Tennessee, Wyoming, Alaska, Nevada, South Dakota — no tax on Social Security, pensions, or retirement income. Illinois and Mississippi also exempt retirement income despite having state income tax.
Worst: Minnesota, Vermont, Connecticut, Rhode Island — partial or full taxation of Social Security benefits.
The OBBBA changes the federal landscape but also shifts how state taxes interact with federal returns:
California, at 13.3% top marginal rate (12.3% base + 1% Mental Health Services surtax on income over $1M). Hawaii is second at 11%.
Nine states: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. NH fully phased out its Interest & Dividends Tax as of Jan 1, 2025.
Ranges from 0% in no-tax states to 6.15% in Oregon. National average is ~3.8%. See the full ranked table above for every state.
OBBBA raised the federal SALT deduction cap from $10,000 to $40,000 in 2026, saving high-tax-state homeowners ~$3,600/year in federal tax on average.
A flat-tax state applies one rate to all income. 14 states use this: AZ, CO, ID, IL, IN, IA, KY, LA, MA, MI, NC, ND, PA, UT. Cheapest: ND at 1.95%.
Full state tax breakdown, brackets, and calculator for your exact state.
Paycheck Calculator →Related: US Tax Statistics 2026 | OBBBA Impact Stats | SALT Deduction Calculator | Federal Tax Brackets | Paycheck Calculator
Tax calculations are estimates for educational and informational purposes only. This site does not provide tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. Data sourced from IRS publications and official state tax authority websites.
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