CobaltProsper

State income tax rates by state

By Brent Chudoba, editor Updated

Most states tax individual income, but a handful do not. Among the states we track, the ones with no state income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Everywhere else, the top marginal rate ranges widely. The table below compares them, and each row links to a full guide. Every figure is traced to the state's own tax authority.

Which states have income tax, and at what rate?

State income tax by state (reviewed August 29, 2026)
State Income tax Top rate Capital gains
Alabama Graduated 5% As income
Alaska None 0% None
Arizona Flat 2.5% As income
Arkansas Graduated 3.7% Special
California Graduated 13.3% As income
Colorado Flat 4.4% As income
Connecticut Graduated 6.99% As income
Delaware Graduated 6.6% As income
District of Columbia Graduated 10.75% As income
Florida None 0% None
Georgia Flat 4.99% As income
Hawaii Graduated 11% Preferential
Idaho Flat 5.3% Special
Illinois Flat 4.95% As income
Indiana Flat 2.95% As income
Iowa Flat 3.8% Special
Kansas Graduated 5.58% As income
Kentucky Flat 3.5% As income
Louisiana Flat 3% As income
Maine Graduated 9.15% As income
Maryland Graduated 6.5% Special
Massachusetts Graduated 9% Special
Michigan Flat 4.25% As income
Minnesota Graduated 9.85% As income
Mississippi Flat 4% As income
Missouri Graduated 4.7% None
Montana Graduated 5.65% Special
Nebraska Graduated 4.55% As income
Nevada None 0% None
New Hampshire None 0% None
New Jersey Graduated 10.75% As income
New Mexico Graduated 5.9% Special
New York Graduated 10.9% As income
North Carolina Flat 3.99% As income
North Dakota Graduated 2.5% Special
Ohio Flat 2.75% As income
Oklahoma Graduated 4.5% Special
Oregon Graduated 9.9% As income
Pennsylvania Flat 3.07% As income
Rhode Island Graduated 5.99% As income
South Carolina Graduated 5.21% Ordinary, with a 44% deduction on net capital gain held long enough to qualify for federal long-term treatment (sc code sec. 12-6-1150), so only 56% of qualifying long-term gains is taxed at all; short-term gains get no deduction
South Dakota None 0% None
Tennessee None 0% None
Texas None 0% None
Utah Flat 4.45% As income
Vermont Graduated 8.75% As income
Virginia Graduated 5.75% As income
Washington None 0% Special
West Virginia Graduated 4.58% As income
Wisconsin Graduated 7.65% Ordinary, with a 30% exclusion on net capital gain from assets held more than one year (60% for qualifying farm assets), so only 70% (40% for farm assets) of qualifying long-term gain is included in taxable income at all; short-term gains get no exclusion
Wyoming None 0% None

Each row links to that state's full income tax guide. Rates from each state's Department of Revenue. Reviewed August 29, 2026.

Which states have no income tax?

A small group of states levy no individual income tax at all. Among those we track, that means Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. In those states, wages, capital gains, and retirement income all escape state income tax, though the state still raises revenue through sales and property taxes, which can be higher as a result. A low income tax does not always mean a low overall tax burden.

How capital gains are taxed by state

No state we track gives capital gains a special lower rate the way the federal government does. States with an income tax treat capital gains as ordinary income; states without an income tax do not tax them at all. Either way, federal capital gains tax still applies: see how capital gains tax works in 2026.

Sources