State income tax in 2026: where you file and where you do not
Quick answer: nine states tax no wages at all, fifteen use a single flat rate, and the rest use graduated brackets. The table below reflects rates in effect for 2026, verified against the Tax Foundation and state revenue departments. If your year touched more than one state, that is our specialty.
No income tax on wages (9)
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
New Hampshire repealed its interest and dividends tax effective 2025. Washington levies a separate capital gains excise tax: 7 percent on large long-term gains, plus a 2.9 percent surtax above $1 million.
Flat tax states (15)
Arizona 2.5% · Ohio 2.75% (new for 2026) · Indiana 2.95% · Louisiana 3.0% · Pennsylvania 3.07% · Kentucky 3.5% · Iowa 3.8% · North Carolina 3.99% · Mississippi 4.0% · Michigan 4.25% · Colorado 4.4% · Utah 4.5% · Illinois 4.95% · Georgia 5.19% · Idaho 5.3%.
Graduated bracket states (26 + DC)
Alabama, Arkansas, California, Connecticut, Delaware, Hawaii, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Dakota, Oklahoma, Oregon, Rhode Island, South Carolina, Vermont, Virginia, West Virginia, Wisconsin, and Washington D.C.
Top rates range from about 4.5 percent to 13.3 percent in California and 10.9 percent in New York. Massachusetts adds a 4 percent surtax above $1 million.
What changed for 2026
Ohio went flat. Rate cuts took effect in Indiana, Kentucky, Mississippi, Montana, Nebraska, North Carolina, and Oklahoma, with retroactive 2025 cuts in Georgia, Idaho, and Utah. Maryland added new top brackets. Missouri newly exempts capital gains.
Two states in one year? That is the expensive part.
Movers, remote workers, travel professionals, and snowbirds routinely overpay or misfile when a year crosses state lines. We prepare the returns in the right order, apply the credits, and put the price in writing first. See our multi-state service or check the snowbird guide.
Sources: Tax Foundation 2026 state individual income tax rates; New Hampshire and Washington departments of revenue. Reviewed June 2026. Educational reference, not advice; rates change and your facts control.
Which states have no income tax in 2026?
Nine states tax no wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire repealed its last income tax, on interest and dividends, effective 2025. Washington taxes no wages but levies a capital gains excise tax on large gains.
I moved between states this year. Where do I file?
Usually a part-year return in each state, in the right order, with credits preventing double taxation. The move year is exactly when professional preparation pays for itself. Multi-state is our specialty.
I work remotely for a company in another state. Do I owe taxes there?
It depends on both states' rules; a handful of states apply special conventions for remote workers. This is one of the most common and most expensive things to get wrong, and we check it on every multi-state return.