State income tax top rates (2026)

All 50 states + DC, alphabetical

Rates as of tax year 2026 (effective January 1, 2026) · Sources: state revenue statutes as compiled by Tax Foundation, State Individual Income Tax Rates and Brackets, 2026; 2026 changes per Tax Foundation, 2026 State Tax Changes. Compiled and cross-checked by RungRate — see methodology.

The same figures are available as machine-readable JSON at /data/state_tax_rates.json — the file RungRate's after-tax tools load as state presets.

What changed for 2026

2026 continued the multi-year run of state rate cuts. Ohio completed its move to a single flat rate of 2.75% on nonbusiness income over $26,050; Montana's top rate fell from 5.9% to 5.65% (with 5.4% scheduled for 2027); Nebraska dropped from 5.2% to 4.55%; and Oklahoma compressed six brackets into three under a 4.5% ceiling. Since 2021, twenty-six states have cut individual income tax rates, and seven have converted graduated schedules into single flat rates. The direction of travel matters for savers: every point a state shaves off its rate shrinks the after-tax gap between a fully taxable CD and a state-tax-exempt Treasury bill.

Flat, graduated, or nothing — why the structure column matters

The headline top rate can overstate what a typical saver actually pays. In graduated states such as New York or California, interest income is taxed at your marginal bracket, which for most filers sits several points below the top rate reserved for very high incomes — Massachusetts is the clearest case, where nearly all savers pay the 5% base rate rather than the 9% shown (the extra 4% is a surtax on income over roughly $1 million). Flat states like Illinois, Arizona, or North Carolina are simpler: one rate applies to essentially all taxable interest, so the table figure is close to the figure that hits your return. In the nine no-tax states, the column is genuinely zero for interest, and any comparison between T-bills, CDs, and savings accounts collapses to sticker yield and liquidity terms.

Local add-ons and the interest question

State rates are not always the whole bill. New York City layers up to 3.876% of local income tax on residents, Maryland counties add roughly 2.25%–3.3%, and Indiana counties, some Michigan cities, and the Portland, Oregon metro area impose their own levies — and in each of these cases the local tax generally reaches interest income. Pennsylvania's and Kentucky's local taxes, by contrast, mostly stop at wages. This is where the Treasury exemption gets more valuable than a state-level table can show: the federal statute (31 U.S.C. § 3124) exempts T-bill interest from local income tax too, so a New Yorker in the city avoids both the state and city layers. The 50-state after-tax advantage table converts these rates into the yield edge they create, and the current yields table supplies the live starting point.