In 2026, a dozen states tax wages at one flat rate: Arizona, Colorado, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Michigan, North Carolina and Pennsylvania, with Utah also using a single rate. Three more, Idaho, Mississippi and Ohio, apply one rate after a zero-tax amount at the bottom.
A flat rate makes the math easier, but it doesn't mean everyone in those states pays the same share. What each state lets you subtract first, through a standard deduction, personal exemption or credit, changes the result a lot. This guide lists the flat tax states, shows how their deductions differ, and compares the same paycheck across all of them.
How a flat state income tax works
In a graduated system, like the federal one, different slices of income are taxed at rising rates. In a flat system, every taxable dollar is taxed at the same rate. The only question is how much of your pay counts as taxable.
That depends on three things:
- Standard deduction: a fixed amount subtracted from income before the rate applies. Some flat states start from federal taxable income, so the 2026 federal standard deduction ($16,100 single) carries over.
- Personal exemption: a per-person amount subtracted from income, used instead of or alongside a standard deduction.
- Personal credit: a dollar amount taken off the tax itself, after the rate is applied.
Because of these differences, a state with a slightly higher rate can end up taking less from your paycheck than a state with a lower rate.
Flat tax states and their 2026 rates
Rates and deductions below are for single filers and come from our 2026 state data, based on the Tax Foundation's state rate tables.
| State | Flat rate | What's subtracted first (single) |
|---|---|---|
| Arizona | 2.5% | $8,350 standard deduction |
| Colorado | 4.4% | Starts from federal taxable income ($16,100 federal deduction) |
| Georgia | 5.19% | $12,000 standard deduction |
| Illinois | 4.95% | $2,925 personal exemption, no standard deduction |
| Indiana | 2.95% plus county tax | $1,000 personal exemption |
| Iowa | 3.8% | Starts from federal taxable income, plus a $40 personal credit |
| Kentucky | 3.5% | $3,360 standard deduction (same for married couples) |
| Louisiana | 3.0% | $12,875 standard deduction |
| Massachusetts | 5.0% (extra 4% above $1,083,150) | $4,400 personal exemption |
| Michigan | 4.25% | $5,900 personal exemption |
| North Carolina | 3.99% | $12,750 standard deduction |
| Pennsylvania | 3.07% | Nothing: no standard deduction or exemption |
| Utah | 4.5% | Taxpayer credit that shrinks as income rises |
Flat above a zero-rate amount
Three states tax nothing on a first slice of income, then apply one rate to the rest:
- Idaho: 0% on the first $4,811 of taxable income (single), then 5.3%. Uses the federal standard deduction.
- Mississippi: 0% on the first $10,000 of taxable income, then 4%, with a $6,000 personal exemption and $2,300 standard deduction.
- Ohio: 0% up to $26,050, then 2.75% for 2026. Ohio's personal exemption varies with income, so treat Ohio figures as estimates.
Massachusetts is flat for nearly everyone, since its 4% surtax only applies to income above $1,083,150.
Comparing the same paycheck in every flat tax state
Here is a single filer earning $55,000 a year, paid semimonthly (24 paychecks), with no pre-tax deductions. Federal income tax ($184.17), Social Security ($142.08) and Medicare ($33.23) per paycheck are identical everywhere, so only state income tax is shown.
| State | State tax per paycheck | State tax per year |
|---|---|---|
| Ohio (estimate) | $30.71 | $737 |
| Arizona | $48.59 | $1,166 |
| Louisiana | $52.66 | $1,264 |
| Iowa | $59.93 | $1,438 |
| Mississippi | $61.17 | $1,468 |
| Indiana (before county tax) | $66.38 | $1,593 |
| North Carolina | $70.24 | $1,686 |
| Pennsylvania | $70.35 | $1,688 |
| Colorado | $71.32 | $1,712 |
| Idaho | $75.28 | $1,807 |
| Kentucky | $75.31 | $1,807 |
| Utah (estimate) | $82.80 | $1,987 |
| Michigan | $86.95 | $2,087 |
| Georgia | $92.99 | $2,232 |
| Massachusetts | $105.42 | $2,530 |
| Illinois | $107.40 | $2,578 |
These are estimates from our paycheck calculator. The Utah figure is labeled an estimate because it uses the 2025 credit phase-out threshold.
What the comparison shows
Iowa's 3.8% rate takes less than Kentucky's 3.5% rate at this salary, because Iowa subtracts the full federal standard deduction while Kentucky subtracts only $3,360. Pennsylvania's 3.07% rate lands in the middle of the pack because it allows no deduction at all. And Illinois, at 4.95%, edges out Massachusetts at 5% only on the rate; its smaller exemption means it takes slightly more in dollars.
Extra items that don't show up in the rate
A state's headline rate is rarely the whole story on a pay stub.
- Local income taxes: every Indiana county adds its own income tax, most Pennsylvania municipalities and school districts levy an earned income tax, and Michigan cities like Detroit have their own. Kentucky and Ohio have common local wage taxes too. See which states have local income taxes.
- Payroll programs: Pennsylvania employees pay 0.07% toward unemployment insurance ($1.60 per paycheck in the example above). Colorado and Massachusetts employees contribute to paid family and medical leave programs.
- 401(k) treatment: Pennsylvania taxes your 401(k) contributions, while most states let them reduce your state taxable wages.
Is a flat tax state a lower-tax state?
Not automatically. Flat rates in 2026 range from 2.5% in Arizona to 5.19% in Georgia, and the deduction rules swing the result further. A graduated state like North Dakota can take less than any flat state for many workers.
What a flat tax does do is keep the rate the same as you earn more. A raise in Colorado is taxed at 4.4% at $40,000 of income and at $400,000 alike, while in a graduated state the extra pay may fall into a higher bracket. To see where every state lands, compare the lowest state income tax rates with the highest state income tax rates, or open a state from the state calculator directory, such as the Colorado paycheck calculator or the Illinois paycheck calculator.
Frequently Asked Questions
Which flat tax state has the lowest rate in 2026?
Arizona, at 2.5%. Ohio's 2.75% rate applies only above $26,050, so it can take less for some earners.
Does a flat tax mean everyone pays the same percentage?
Everyone pays the same rate on taxable income, but deductions and exemptions are a bigger share of a small income. So lower earners pay a smaller share of their total pay.
Is Illinois a flat tax state?
Yes. Illinois taxes all income at 4.95% after a $2,925 personal exemption, and its constitution requires a flat rate.
Why is Utah's figure marked as an estimate?
Utah applies a flat 4.5% rate and then a taxpayer credit worth 6% of the federal standard deduction, which shrinks by 1.3 cents for each dollar of income above a threshold ($18,213 for single filers in 2025). Utah indexes that threshold each year, so the 2026 credit may be slightly larger than the one used here.
Sources
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
- IRS: Tax inflation adjustments for tax year 2026
- IRS Publication 15, Employer's Tax Guide
Run the numbers for your state
Written and checked against IRS, Social Security Administration and state tax agency publications for the 2026 tax year. General information, not tax, legal or financial advice. Read our editorial policy, calculation methodology and sources.