Question 1

Which states have no income tax?

Accepted Answer

Nine states have no state income tax in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire previously taxed interest and dividends, but that tax phased out completely by 2025.

Question 2

What state has the highest income tax?

Accepted Answer

California has the highest top marginal rate at 13.3% (applied to income above $1,000,000). However, at $250,000 income, Oregon's effective rate of 9.2% actually exceeds California's 8.2%. The highest rate depends on income level. Hawaii has the most aggressive bracket structure for incomes above $200,000.

Question 3

What state has the lowest income tax?

Accepted Answer

Among states that levy income tax, North Dakota is the lowest at 1.95% (flat). Arizona follows at 2.5% flat, Indiana at 3.05% flat, and Pennsylvania at 3.07% flat. Note that some low-rate states have local income taxes that add to the burden (Indiana counties, Pennsylvania municipalities).

Question 4

What is the difference between a marginal and effective tax rate?

Accepted Answer

Your marginal rate is the rate applied to your last dollar of income. Your effective rate is total tax paid divided by total income. In a graduated-bracket state like California, a $100,000 earner has a 9.3% marginal rate but only a 5.8% effective rate, because the lower brackets are taxed at lower rates.

Question 5

What is a flat income tax state?

Accepted Answer

A flat tax state applies a single rate to all income, regardless of how much you earn. In 2026, 13 states use flat rates: Arizona (2.5%), Colorado (4.4%), Georgia (5.39%), Illinois (4.95%), Indiana (3.05%), Iowa (3.9%), Kentucky (4.0%), Massachusetts (5.0% plus 4% on income over $1M), Michigan (4.05%), Mississippi (4.4%), North Carolina (4.5%), North Dakota (1.95%), Pennsylvania (3.07%), and Utah (4.55%).

Question 6

Do any cities have their own income tax on top of state tax?

Accepted Answer

Yes. New York City charges up to 3.876% on top of New York State tax, giving a combined top rate of 14.776%. Philadelphia charges 3.75% wage tax. Detroit charges 2.4% (1.2% for non-residents). All 88 Maryland counties, all 92 Indiana counties, most Ohio cities, and many Pennsylvania municipalities also levy local income taxes.

Question 7

Which states do not tax Social Security income?

Accepted Answer

41 states do not tax Social Security benefits at all. The 9 states that do tax Social Security are Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. However, most of these states have income thresholds above which the exemption phases out.

Question 8

What are the 2026 state income tax changes?

Accepted Answer

Key 2026 changes: Iowa completed its transition from a graduated system (top rate 8.53%) to a flat 3.9% rate. Mississippi reduced its top rate from 4.7% to 4.4%, continuing a glide path toward 3.5% by 2030. Georgia reduced its flat rate from 5.49% to 5.39%, heading toward 4.99%. Indiana's flat rate remained at 3.05%.

Question 9

How do state income taxes work for remote workers?

Accepted Answer

Remote workers generally pay income tax to their state of residence, not their employer's state. However, some states have reciprocity agreements (e.g., New Jersey and Pennsylvania allow residents to only file in their home state). New York applies the 'convenience of the employer' rule, which can require remote workers to pay NY tax even if they work from another state.

Question 10

Is a no-income-tax state always cheaper overall?

Accepted Answer

Not necessarily. States without income tax often have higher property taxes, sales taxes, or other levies. Texas has some of the highest property tax rates in the US. Washington has a 6.5% sales tax. The total tax burden comparison depends on your income, home value, and spending patterns. See noincometaxstates.com for a full analysis.

State	Tax Type	Top Rate ↓	Effective @ $75K	Effective @ $100K	Local Tax
California	Graduated	13.3%	4%	5.8%	Yes	View →
Hawaii	Graduated	11%	6.6%	7.2%	No	View →
New York	Graduated	10.9%	5.5%	6.1%	Yes	View →
New Jersey	Graduated	10.75%	4.5%	5.5%	No	View →
Washington DC	Graduated	10.75%	6.2%	7%	No	View →
Oregon	Graduated	9.9%	7.6%	8.4%	No	View →
Minnesota	Graduated	9.85%	6.2%	6.8%	No	View →
Massachusetts	Flat	9%	4.5%	4.7%	No	View →
Vermont	Graduated	8.75%	5.2%	5.9%	No	View →
Wisconsin	Graduated	7.65%	5%	5.4%	No	View →
Maine	Graduated	7.15%	5.9%	6.4%	No	View →
Connecticut	Graduated	6.99%	4.2%	5%	No	View →
Montana	Graduated	6.75%	5.8%	6.2%	No	View →
Delaware	Graduated	6.6%	5.5%	5.9%	No	View →
South Carolina	Graduated	6.5%	5.6%	5.9%	No	View →
West Virginia	Graduated	6.5%	5.1%	5.5%	No	View →
Rhode Island	Graduated	5.99%	4.5%	5%	No	View →
New Mexico	Graduated	5.9%	4.3%	4.8%	No	View →
Nebraska	Graduated	5.84%	5.1%	5.4%	No	View →
Idaho	Graduated	5.8%	5%	5.3%	No	View →
Maryland	Graduated	5.75%	5%	5.3%	Yes	View →
Virginia	Graduated	5.75%	5%	5.3%	No	View →
Kansas	Graduated	5.7%	4.9%	5.2%	Yes	View →
Georgia	Flat	5.39%	4.7%	4.9%	No	View →
Alabama	Graduated	5%	4%	4.3%	Yes	View →
Illinois	Flat	4.95%	4.4%	4.6%	No	View →
Missouri	Graduated	4.8%	4.2%	4.5%	Yes	View →
Oklahoma	Graduated	4.75%	4.2%	4.4%	No	View →
Utah	Flat	4.55%	4%	4.1%	No	View →
North Carolina	Flat	4.5%	4%	4.1%	No	View →
Colorado	Flat	4.4%	3.9%	4%	No	View →
Mississippi	Flat	4.4%	3.8%	3.9%	No	View →
Louisiana	Graduated	4.25%	3.8%	4%	No	View →
Michigan	Flat	4.05%	3.6%	3.7%	Yes	View →
Kentucky	Flat	4%	3.6%	3.7%	Yes	View →
Iowa	Flat	3.9%	3.4%	3.6%	Yes	View →
Arkansas	Graduated	3.9%	3.3%	3.5%	No	View →
Ohio	Graduated	3.75%	3.1%	3.3%	Yes	View →
Pennsylvania	Flat	3.07%	2.7%	2.8%	Yes	View →
Indiana	Flat	3.05%	2.7%	2.8%	Yes	View →
Arizona	Flat	2.5%	2.1%	2.2%	No	View →
North Dakota	Flat	1.95%	1.6%	1.7%	No	View →
Alaska	No Tax	0%	0%	0%	No	View →
Florida	No Tax	0%	0%	0%	No	View →
Nevada	No Tax	0%	0%	0%	No	View →
New Hampshire	No Tax	0%	0%	0%	No	View →
South Dakota	No Tax	0%	0%	0%	No	View →
Tennessee	No Tax	0%	0%	0%	No	View →
Texas	No Tax	0%	0%	0%	No	View →
Washington	No Tax	0%	0%	0%	No	View →
Wyoming	No Tax	0%	0%	0%	No	View →

State	SS Benefits	Pension Income	401(k)/IRA	Military Pension
California	Exempt	Taxed	Taxed	Taxed
Illinois	Exempt	Exempt	Exempt	Exempt
Georgia	Exempt	Partial	Partial	Exempt
Florida	Exempt	Exempt	Exempt	Exempt
New York	Exempt	Partial	Partial	Exempt

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