State Income Tax by State 2026: Full 50-State Comparison Table

Why does state income tax vary so much?

Unlike federal tax, which you owe the IRS no matter where you live, state income tax is set independently by each state legislature. Some states — especially those without major oil revenue or tourism income — rely on income tax as a core budget source, while others fund their budgets through sales or property tax and skip income tax altogether.

This directly affects your take-home pay. An engineer earning $90,000 a year in Texas (no state income tax) keeps more of it than someone earning the same salary in California.

State income tax table (2026)

These are the top marginal rates per the Tax Foundation's 2026 report. Some states also layer on city or county income tax not shown here (New York City and Philadelphia, for example). Always check your state's official Department of Revenue website before filing.

The 9 states with no wage income tax

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming, and Washington (wages only). That doesn't automatically make them cheaper to live in — Texas has some of the highest property taxes in the country, and Washington has some of the highest sales taxes. Before deciding where to live based on tax alone, check our cost-of-living guide.

How to figure out what gets withheld from your paycheck

1. Determine your tax residency state. Usually where you actually live and work, not your employer's headquarters.
2. Use a paycheck calculator. Enter your gross salary and state into the paycheck calculator to see net pay after state, federal, and Social Security deductions.
3. Fill out your state withholding form correctly. New employers ask you to complete a state withholding form alongside the federal W-4 — get it right so you're not surprised by a tax bill at filing time.
4. Check your pay stubs. Review the state tax line on each pay stub to confirm the correct amount is being withheld.

What if you moved between states during the year?

You file part-year resident returns in both states, each covering income earned while you lived there. If you work remotely from one state for a company based in another, tax generally follows where you actually live and work — not the company's address. But some states (New York, notably) have more complex "convenience of the employer" rules, so consult an accountant if that applies to you.

Practical notes for the Arab community

Many new immigrants pick where to live based on proximity to community or job opportunities, without factoring in state tax — and that's a real difference in monthly take-home pay. If you're weighing two states with similar housing costs, like New Jersey and New York versus Pennsylvania, running the state tax math on your annual salary can change the decision. Sending remittances home has nothing to do with state income tax, but it may involve separate federal foreign-account reporting rules.

Worked example: take-home pay in a tax state vs. a no-tax state

Say two engineers each earn a gross salary of $95,000 a year: one in Texas (no state income tax) and one in New Jersey (graduated system, top rate 10.75%). After federal tax, Social Security, and Medicare — which are nearly identical for both — the New Jersey engineer pays additional state tax calculated across their income brackets, while their Texas counterpart pays nothing on that line. The exact dollar difference depends on the precise bracket and number of exemptions, so run your real numbers through the paycheck calculator instead of relying on a general estimate; this example illustrates the principle, not a final figure.

That gap compounds every year, so when comparing two job offers in different states, don't just compare gross salary — compare take-home pay after tax, plus the difference in housing and cost of living.

Reciprocity agreements between neighboring states

Some neighboring states have a "reciprocity agreement" that lets a resident who works in the adjacent state pay income tax only to their home state, instead of filing two returns. This is common around the Washington DC metro area, around Philadelphia, and among several Midwest states. If you live in one state and physically work in a neighboring one, ask your employer's HR department directly whether a reciprocity agreement applies to you, and file the right exemption form so you're not withheld in both states.

When do you need to file a "nonresident" return in another state?

If you live in one state but earn income from another — a rental property, freelance work for a client you travel to, or a part-time in-person job across state lines — you may need to file a nonresident return in that second state in addition to your resident return. Most states then give you a tax credit on your resident return so you're not taxed twice on the same income. This comes up often for people who work remotely part of the week and commute to an office in a neighboring state, so check both states' specific rules.

Common mistakes

• Assuming federal tax is all you owe. State tax is entirely separate and usually filed on its own return.
• Forgetting city or county tax. Some cities, like New York City, add their own income tax on top of the state rate.
• Comparing states by the top rate alone. In a graduated system, the top rate only applies to the portion of income above that bracket, not your entire salary.
• Moving without updating your withholding form. Leads to incorrect withholding or a tax bill at filing time.

What's next

Once you know your state's situation, prepare for your annual filing with our full US taxes guide, and if you're a new W-2 employee, see the first tax return guide. If you're comparing states to move to, also check minimum wage by state to weigh earning potential, and use the paycheck calculator to compare real take-home pay across states before deciding.

Frequently asked questions

Official sources we reviewed

• Tax Foundation — 2026 State Income Tax Rates and Brackets ↗
• Tax Foundation — Facts & Figures 2026 (PDF) ↗
• Tax Foundation — 2026 State Tax Changes Taking Effect January 1st ↗