Which State Has the Highest Income Tax? 2026 Rankings
California has the highest state income tax rate in the US at 13.3% (12.3% top FTB rate + 1% Behavioral Health tax over $1M). Hawaii ranks second at 11.0%, followed by New York at 10.9% (up to 14.78% in NYC), New Jersey at 10.75%, and Washington DC at 10.75%.
Top 10 Highest State Income Tax Rates in 2026
State income taxes vary dramatically across the nation. Below is the official ranking of the top 10 highest top marginal individual income tax rates in 2026:
| Rank | State / Jurisdiction | Top Marginal Income Tax Rate | Income Threshold for Top Bracket | Tax System Structure |
|---|---|---|---|---|
| 1 | California (CA) | 13.30% | Over $1,000,000 ($1,536,426 joint) | Graduated 9 Brackets (1% to 13.3% FTB) |
| 2 | Hawaii (HI) | 11.00% | Over $200,000 ($400,000 joint) | Graduated 12 Brackets (1.4% to 11.0%) |
| 3 | New York (NY) | 10.90%* | Over $25,000,000 (State only) | Graduated (*Up to 14.78% with NYC tax) |
| 4 | New Jersey (NJ) | 10.75% | Over $1,000,000 | Graduated (1.4% to 10.75%) |
| 5 | District of Columbia (DC) | 10.75% | Over $1,000,000 | Graduated (4.0% to 10.75%) |
| 6 | Oregon (OR) | 9.90% | Over $125,000 ($250,000 joint) | Graduated (*Up to 14.69% in Portland Metro) |
| 7 | Minnesota (MN) | 9.85% | Over $193,240 ($321,450 joint) | Graduated (5.35% to 9.85%) |
| 8 | Massachusetts (MA) | 9.00% | Over $1,000,000 | 5.0% Flat + 4.0% Millionaire Surtax |
| 9 | Vermont (VT) | 8.75% | Over $230,000 ($280,000 joint) | Graduated (3.35% to 8.75%) |
| 10 | Wisconsin (WI) | 7.65% | Over $315,310 ($420,420 joint) | Graduated (3.50% to 7.65%) |
*Note: For non-California states, rankings reflect top statutory marginal tax brackets; everyday salaries on our calculator are calculated using progressive estimated rates.
How California's 13.3% Top Rate Breaks Down
California's individual income tax is administered by the Franchise Tax Board (FTB):
- Base Statutory Rates: 8 brackets ranging from 1.0% up to 12.3% on taxable income exceeding $768,213 (Single).
- Behavioral Health Services Tax: An extra 1.0% surtax (Mental Health Services Tax, renamed under Prop 1) levied on all taxable income exceeding $1,000,000, creating the top statutory rate of 13.30%.
The Total Tax Burden: Why Income Tax Isn't the Whole Story
When evaluating relocation, look at the overall combined tax burden (income tax + property tax + sales tax):
- High Income Tax States: California, New York, and Hawaii have high income taxes and high sales taxes, but California limits property tax increases via Proposition 13.
- Zero Income Tax States: Texas, Florida, and Tennessee have 0% income tax, but Texas charges higher property taxes (1.8%–2.1%) and Tennessee charges higher sales taxes (9.55% combined).
Frequently Asked Questions (FAQ)
Which city has the highest local income tax in the US?
New York City has the highest municipal income tax (up to 3.876%). When combined with New York State's 10.9% top bracket, NYC high earners face a combined top state and local income tax rate of 14.776%.
How many states have a flat income tax rate?
In 2026, 12 states operate a single flat rate income tax: Arizona (2.5%), Colorado (4.4%), Georgia (5.39%), Idaho (5.695%), Illinois (4.95%), Indiana (3.05%), Iowa (3.8%), Kentucky (4.0%), Michigan (4.25%), Mississippi (4.4%), North Carolina (4.25%), and Pennsylvania (3.07%).
How much can high earners save by moving to a zero-tax state?
An executive earning $500,000 moving from California to Texas or Florida saves over $44,000 per year in state income taxes. Read our Texas vs California Tax Comparison Guide.
Explore 50-State Paycheck Calculations
Compare take-home pay in highest-tax vs zero-tax states: