Highest Taxed States in 2026: Where You Pay the Most Income Tax
comparisons
States With the Highest Top Income Tax Rates (2026)
| Rank | State | Top Rate | Type |
|---|---|---|---|
| 1 | California | 13.3% | Progressive (9 brackets) |
| 2 | Hawaii | 11.0% | Progressive (12 brackets) |
| 3 | New York | 10.9% | Progressive (9 brackets) |
| 4 | New Jersey | 10.75% | Progressive (7 brackets) |
| 5 | Oregon | 9.9% | Progressive (4 brackets) |
| 6 | Minnesota | 9.85% | Progressive (4 brackets) |
| 7 | Vermont | 8.75% | Progressive (4 brackets) |
| 8 | Wisconsin | 7.65% | Progressive (4 brackets) |
| 9 | Maine | 7.15% | Progressive (3 brackets) |
| 10 | Connecticut | 6.99% | Progressive (7 brackets) |
What Changed in 2026
Several states continued cutting their income tax rates:
- Kentucky: Dropped from 4.0% to 3.5% (ongoing phase-down)
- North Carolina: Dropped from 4.5% to 3.99%
- Mississippi: Dropped from 4.4% to 4.0%
- Georgia: Dropped from 5.39% to 5.19%
- Indiana: Dropped from 3.05% to 2.95%
These states are on a clear trajectory toward lower taxes, with some aiming to eventually eliminate their income tax entirely.
Effective Tax Rate: What You Actually Pay
Top marginal rates can be misleading. Here is the effective state income tax rate for a $100,000 salary (single filer) in 2026:
| State | Effective Rate | State Tax on $100K |
|---|---|---|
| Oregon | ~6.8% | ~$6,800 |
| Hawaii | ~5.7% | ~$5,700 |
| Minnesota | ~5.1% | ~$5,100 |
| California | ~4.8% | ~$4,800 |
| New York | ~4.7% | ~$4,700 |
| New Jersey | ~3.4% | ~$3,400 |
| Massachusetts | ~5.0% | ~$5,000 |
The Trend: States Are Cutting Taxes
Over 20 states have cut their income tax rates since 2021. The trend is accelerating, with competitive pressure between states driving further reductions. States like Iowa, Mississippi, and North Carolina have legislated multi-year phase-downs that will continue lowering rates through 2028 and beyond.
Use our state comparison tool to see the exact difference for your specific salary.
