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State tax

Highest and lowest income-tax states in 2026

The lowest-tax paycheck states in 2026 are the nine with no wage income tax (including Texas, Florida, and Washington). The highest combined bite for typical W-2 wages is usually California, New York City, Hawaii, Oregon, and Minnesota, once you include local tax.

No-income-tax states are not no-tax states

Texas, Florida, Nevada, Washington, Tennessee, Alaska, Wyoming, South Dakota, and New Hampshire skip wage income tax. They still collect sales, property, or gross-receipts tax. For a renter whose main cost is the paycheck, the missing income tax is still a real raise.

Top statutory rate is not the whole story

California’s 13.3% top rate only hits millionaires. A $90,000 single filer in California is mostly in the 8–9.3% bands after the deduction. New York City’s local tax can hurt a $90,000 earner more than California’s top rate, which they never reach.

Flat-tax states are easy to compare

Arizona 2.5%, Indiana 2.95%, North Carolina 3.99%, Utah 4.5%, Colorado 4.4%, Illinois 4.95%, Georgia 5.19%. After standard deductions, the ranking at $80k is close to those headline rates. Graduated states need the calculator.

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