California has the highest state income tax rate in 2026 at 13.3%, followed by Hawaii (11%), New York (10.9%), New Jersey (10.75%), Oregon (9.9%) and Minnesota (9.85%). But those top rates mostly apply to very high incomes, so the state that takes the most from a typical paycheck isn't always the one with the biggest headline number.
This guide ranks the states by top rate, shows the income where each top rate begins, and runs the same $120,000 salary through each one so you can see what actually comes out of a paycheck.
The 10 highest state income tax rates for 2026
Top rates and thresholds below are for single filers and come from our 2026 state data, based on the Tax Foundation's state rate tables. Married couples filing jointly generally reach each rate at a higher income.
| Rank | State | Top rate | Top rate starts at (single, taxable income) |
|---|---|---|---|
| 1 | California | 13.3% | $1,000,000 |
| 2 | Hawaii | 11% | $325,000 |
| 3 | New York | 10.9% | $25,000,000 |
| 4 | New Jersey | 10.75% | $1,000,000 |
| 5 | Oregon | 9.9% | $125,000 |
| 6 | Minnesota | 9.85% | $203,150 |
| 7 | Massachusetts | 9% (5% plus 4% surtax) | $1,083,150 |
| 8 | Vermont | 8.75% | $249,700 |
| 9 | Wisconsin | 7.65% | $332,720 |
| 10 | Maine | 7.15% | $64,849 |
Connecticut's top rate is 6.99%, but its exemptions and credits shrink as income rises and higher earners lose the benefit of lower brackets. Our Connecticut paycheck calculator applies the exemption phase-out but not the income-based personal credit or the recapture, so its figures are labeled estimates.
Why the top rate can be misleading
A state income tax bracket only applies to the income inside it. California's 13.3% rate, for example, includes a 1% mental health services tax that applies only above $1 million. New York's 10.9% bracket starts at $25 million. Most workers in those states never get close.
What matters more for an ordinary paycheck is how quickly the middle brackets climb. Oregon is the standout: its 8.75% rate starts at just $11,400 of taxable income for single filers, so most Oregon workers pay 8.75% on much of their pay. Maine's 7.15% top rate kicks in at $64,849, well within reach of middle earners.
Rates where middle earners actually land
For a single filer with $120,000 in wages, here is the bracket that the last dollars of taxable income fall into after each state's deductions:
- Oregon: 8.75%
- California: 9.3%
- Hawaii: 7.6%
- Minnesota: 6.8%
- Vermont: 6.6%
- New Jersey: 6.37%
- New York: 5.9%
California's marginal rate is higher than Oregon's at this income, but Oregon's 8.75% applies to far more of the paycheck because it starts so low. That is why the dollar comparison below doesn't follow the top-rate ranking.
Worked example: $120,000 in high-tax states
Here is a single filer earning $120,000, paid biweekly (26 paychecks), with no pre-tax deductions. Federal withholding ($675.77), Social Security ($286.15) and Medicare ($66.92) per paycheck are the same in every state. Florida is included as a no-income-tax baseline.
| State | State income tax per paycheck | State income tax per year | Net per paycheck |
|---|---|---|---|
| Oregon (estimate) | $371.94 | $9,670 | $3,209.98 |
| Hawaii | $291.92 | $7,590 | $3,294.62 |
| California | $266.55 | $6,930 | $3,319.99 |
| Minnesota | $255.25 | $6,637 | $3,331.29 |
| New York | $232.30 | $6,040 | $3,353.04 |
| Vermont | $209.99 | $5,460 | $3,376.55 |
| New Jersey | $209.84 | $5,456 | $3,376.70 |
| Florida | $0.00 | $0 | $3,586.54 |
These are estimates from our paycheck calculator. A few notes on the numbers:
- The Oregon figure is likely too high, because the calculator doesn't apply Oregon's partial subtraction for federal income tax. Oregon's net also reflects its 0.1% statewide transit tax ($4.62 per paycheck).
- New York's net includes $1.20 per paycheck for state disability insurance (SDI). New York Paid Family Leave isn't included.
- California SDI, Hawaii TDI, Minnesota's paid leave premium and New Jersey's employee insurance contributions aren't included, so actual take-home pay in those states will be somewhat lower.
Compared with Florida, the Oregon worker gives up about $377 per paycheck and the New Jersey worker about $210.
Local taxes can push the total higher
State rates are only part of the picture in some places. New York City and Yonkers residents pay their own income tax on top of New York State's. Every Maryland county and Baltimore City levies a local income tax of roughly 2.25% to 3.3%, which makes Maryland's combined rate one of the highest in the country even though its state top rate is 6.5%. Portland-area residents in Oregon may also owe Metro and Multnomah County taxes on higher incomes.
If you live somewhere with a local income tax, enter the rate in the local tax box of the calculator. Our guide to local income taxes explains which states have them and how they work.
What high rates mean for raises and bonuses
In a graduated state, a raise is taxed at your top state bracket, not your average rate. For the $120,000 earner in California, an extra dollar of salary is taxed at 9.3% by the state on top of federal tax and FICA. In Oregon it would be 8.75% until taxable income passes $125,000, then 9.9%.
Bonuses are a separate case. Federal withholding on bonuses is usually a flat 22%, and some states also set their own flat withholding rate for supplemental pay. Our guide on how bonuses are taxed covers the federal side, and your state revenue department can tell you how it handles bonuses.
Comparing high-tax and low-tax states
A higher state income tax doesn't automatically mean a lower standard of living or a worse deal. Salaries, housing costs, sales taxes and property taxes all vary. Oregon, for example, has no sales tax.
To compare specific places, try the California paycheck calculator, the Oregon paycheck calculator and the New York paycheck calculator, or read our California vs. Texas take-home pay comparison. For the other end of the scale, see the states with the lowest income tax rates.
Frequently Asked Questions
Which state has the highest income tax rate in 2026?
California, with a top rate of 13.3% on taxable income over $1 million for single filers. That rate includes a 1% mental health services tax.
Which state takes the most from a middle-class paycheck?
Among the states we compute, Oregon often does, because its 8.75% rate starts at $11,400 of taxable income. Our Oregon estimate runs high, so check the Oregon Department of Revenue for exact figures.
Do high earners pay the top rate on all their income?
No. The top rate applies only to income above that bracket's threshold. Lower slices are taxed at lower rates.
Is Maryland a high-tax state?
Its state top rate is 6.5%, but nearly every resident also pays a county income tax of roughly 2.25% to 3.3%, so combined rates are among the highest in the country.
Sources
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
- IRS Publication 15, Employer's Tax Guide
- IRS: Tax inflation adjustments for tax year 2026
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.