How state taxes change your paycheck in 2026
Federal income tax and FICA are the same everywhere — what varies is the state layer. Nine states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) take nothing from wages. Fifteen states use flat rates from 2.5% (Arizona) to 5.19%+, and the rest use graduated brackets topping out anywhere from 2.5% (North Dakota) to 13.3% (California). On a $60,000 salary that spread is worth up to roughly $3,500 a year.
2026 brought cuts in eight states — Indiana, Kentucky, Mississippi, Montana, Nebraska, North Carolina, Ohio, and Oklahoma all lowered rates on January 1, and Georgia cut its flat rate to 4.99% retroactively. Each state page reflects the new numbers.
Frequently asked questions
Which states have no income tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming levy no tax on wages.
How much of my paycheck goes to taxes?
Typically 17–25% at a $60,000 salary in 2026, depending on your state — see your state's page for exact numbers.
Which state taxes wages the most?
California has the highest top rate (13.3%); Oregon takes the most from many middle incomes (8.75% bracket starts at $11,400 taxable).
Are local city taxes included?
No — pages for states with common local taxes (NY, OH, PA, MD, IN, KY, MO, MI) flag them so you know to add your city's rate.