2026 State Income Tax Changes
Every enacted 2026 state income tax change, verified against official state sources.
12 states have enacted income tax rate cuts or restructures for the 2026 tax year, and 10 more made smaller enacted changes (deduction increases, credit changes, inflation indexing). Every figure on this page comes from the same verified dataset that powers our 2026 tax calculators — each entry checked against the state revenue department or enacted bill text, not proposals or news reports.
Rate Cuts and Restructures for 2026
| State | 2025 top rate | 2026 top rate | Enacted by | Source |
|---|---|---|---|---|
| South Carolina | 6% | 5.21% | H.4216 / Act 110 (2026, retroactive to Jan 1) | SCDOR |
| Nebraska | 5.2% | 4.55% | LB 754 (2023 phase-down) | Nebraska DOR 2026 Form 1040N-ES |
| Kentucky | 4% | 3.5% | House Bill 1 (2025) | Kentucky DOR |
| Mississippi | 4.4% | 4% | HB 1 — Build Up Mississippi Act (2025) | Mississippi DOR |
| Ohio | 3.13% | 2.75% | HB 96 (2025) — flat tax from 2026 | Ohio Department of Taxation |
| North Carolina | 4.25% | 3.99% | 2021 budget phase-down (final step) | NCDOR |
| Oklahoma | 4.75% | 4.5% | HB 2764 (2025) | Oklahoma Tax Commission |
| Montana | 5.9% | 5.65% | HB 337 (2025) | Montana DOR 2026 withholding updates |
| West Virginia | 4.82% | 4.58% | SB 392 (2026, retroactive to Jan 1) | WV Tax Division |
| Georgia | 5.19% | 4.99% | HB 463 (2026, retroactive to Jan 1) | Office of the Governor |
| Indiana | 3% | 2.95% | 2023 enacted phase-down | Indiana DOR Departmental Notice #1 |
| Utah | 4.5% | 4.45% | SB 60 (2026 General Session) | Utah Legislature |
Other Enacted 2026 Changes
- Hawaii: Hawaii’s 11% top rate is the second-highest in the nation, but Act 46 is phasing in big relief — the standard deduction doubles to $8,000/$16,000 in 2026, with further steps through 2031. (Hawaii DOTAX Announcement 2024-03)
- Idaho: Idaho cut its flat rate from 5.695% to 5.3% retroactive to January 1, 2025, and the first ~$4,800 of taxable income ($9,600 joint) falls in a 0% bracket. (Idaho State Tax Commission)
- Illinois: Illinois has no standard deduction; instead each filer and dependent gets a $2,850 exemption allowance (2025; $2,925 in 2026), which phases out entirely above $250,000 AGI ($500,000 joint). (Illinois DOR)
- Louisiana: Louisiana replaced its graduated brackets with a flat 3% and a $12,500/$25,000 standard deduction starting in 2025. (Louisiana DOR)
- Maine: Maine’s three rates (5.8%, 6.75%, 7.15%) are unchanged for 2026; only the bracket thresholds rise with inflation. (Maine Revenue Services)
- Massachusetts: Massachusetts is a flat 5% state with a 4% surtax on taxable income over $1,107,750 (2026, indexed) — and short-term capital gains are taxed at a separate 8.5% rate. (Mass.gov)
- Michigan: Personal exemption indexing. (Michigan Treasury)
- New Jersey: New Jersey has no standard deduction — only $1,000/$1,500 exemptions — but its bottom brackets are low (1.4%–3.5% on the first $40,000). The 10.75% top rate starts at $1M. (NJ Department of Labor)
- New York: The FY2026 budget cut New York’s five lowest rates starting in 2026 (to 3.9%–5.9%); the 10.9% top rate over $25M remains through 2032. (NYS Department of Taxation and Finance)
- Rhode Island: Rhode Island has one uniform schedule for every filing status (3.75%/4.75%/5.99%). A millionaire surtax phases in from 2027 — but does not apply in 2026. (RI Division of Taxation)
All 50 States: Top Income Tax Rate, 2025 vs 2026
| State | 2025 top rate | 2026 top rate | Change |
|---|---|---|---|
| Alabama | 5% | 5% | — |
| Alaska | None | None | — |
| Arizona | 2.5% | 2.5% | — |
| Arkansas | 3.9% | 3.9% | — |
| California | 13.3% | 13.3% | — |
| Colorado | 4.4% | 4.4% | — |
| Connecticut | 6.99% | 6.99% | — |
| Delaware | 6.6% | 6.6% | — |
| Florida | None | None | — |
| Georgia | 5.19% | 4.99% | ↓ 0.2 pts |
| Hawaii | 11% | 11% | adjusted |
| Idaho | 5.3% | 5.3% | adjusted |
| Illinois | 4.95% | 4.95% | adjusted |
| Indiana | 3% | 2.95% | ↓ 0.05 pts |
| Iowa | 3.8% | 3.8% | — |
| Kansas | 5.58% | 5.58% | — |
| Kentucky | 4% | 3.5% | ↓ 0.5 pts |
| Louisiana | 3% | 3% | adjusted |
| Maine | 7.15% | 7.15% | adjusted |
| Maryland | 6.5% | 6.5% | — |
| Massachusetts | 9% | 9% | adjusted |
| Michigan | 4.25% | 4.25% | adjusted |
| Minnesota | 9.85% | 9.85% | — |
| Mississippi | 4.4% | 4% | ↓ 0.4 pts |
| Missouri | 4.7% | 4.7% | — |
| Montana | 5.9% | 5.65% | ↓ 0.25 pts |
| Nebraska | 5.2% | 4.55% | ↓ 0.65 pts |
| Nevada | None | None | — |
| New Hampshire | None | None | — |
| New Jersey | 10.75% | 10.75% | adjusted |
| New Mexico | 5.9% | 5.9% | — |
| New York | 10.9% | 10.9% | adjusted |
| North Carolina | 4.25% | 3.99% | ↓ 0.26 pts |
| North Dakota | 2.5% | 2.5% | — |
| Ohio | 3.13% | 2.75% | ↓ 0.38 pts |
| Oklahoma | 4.75% | 4.5% | ↓ 0.25 pts |
| Oregon | 9.9% | 9.9% | — |
| Pennsylvania | 3.07% | 3.07% | — |
| Rhode Island | 5.99% | 5.99% | adjusted |
| South Carolina | 6% | 5.21% | ↓ 0.79 pts |
| South Dakota | None | None | — |
| Tennessee | None | None | — |
| Texas | None | None | — |
| Utah | 4.5% | 4.45% | ↓ 0.05 pts |
| Vermont | 8.75% | 8.75% | — |
| Virginia | 5.75% | 5.75% | — |
| Washington | None | None | — |
| West Virginia | 4.82% | 4.58% | ↓ 0.24 pts |
| Wisconsin | 7.65% | 7.65% | — |
| Wyoming | None | None | — |
Top marginal state income tax rate on wage income, single filer. "None" = no state income tax on wages. "Adjusted" = enacted non-rate changes (deductions, exemptions, credits, payroll contributions, or inflation indexing). Click any state for its full 2026 calculator with brackets, deductions and take-home pay.
Estimate Your 2026 Taxes
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Frequently Asked Questions
Which states cut income taxes for 2026?
12 states have enacted lower income tax rates for the 2026 tax year: South Carolina (6% → 5.21%), Nebraska (5.2% → 4.55%), Kentucky (4% → 3.5%), Mississippi (4.4% → 4%), Ohio (3.13% → 2.75%), North Carolina (4.25% → 3.99%), Oklahoma (4.75% → 4.5%), Montana (5.9% → 5.65%), West Virginia (4.82% → 4.58%), Georgia (5.19% → 4.99%), Indiana (3% → 2.95%), Utah (4.5% → 4.45%). All are enacted law verified against official state sources — not proposals.
Which states have no income tax in 2026?
Nine states levy no tax on wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. (New Hampshire completed the repeal of its interest & dividends tax in 2025, and Washington taxes only large capital gains.)
What is the biggest state tax change for 2026?
South Carolina replaced its entire structure: a new two-rate system (1.99% under $30,000, 5.21% above — down from a 6% top rate) computed on federal AGI minus a new income-adjusted deduction. Among simple rate cuts, Kentucky’s half-point drop (4.0% → 3.5%) and Nebraska’s 5.2% → 4.55% are the largest.
Do the 2026 changes affect the return I file in early 2026?
No. The return you file by April 2026 covers the 2025 tax year under 2025 rules. The 2026 changes apply to income you earn during 2026 — you’ll see them in paycheck withholding during 2026 and on the return you file by April 2027.
Are more state tax cuts scheduled after 2026?
Yes — several are already enacted: Nebraska falls to 3.99% and Montana to 5.4% in 2027, Indiana to 2.9%, Mississippi continues phasing toward 3% by 2030, and South Carolina, Kansas and West Virginia have revenue-triggered cuts that activate automatically when collections targets are met.