Understanding State Income Tax Brackets in 2026

What Are Tax Brackets?

State income tax brackets determine how much tax you pay based on your income. There are two main types: progressive and flat tax systems.

Progressive vs Flat

In a progressive system like California or New York, your income is divided into chunks (brackets), each taxed at a different rate. Higher portions are taxed at higher rates.

In a flat tax system like Colorado (4.4%) or Illinois (4.95%), all taxable income is taxed at the same rate regardless of how much you earn.

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Marginal vs Effective Rate

Your marginal rate is the tax on your last dollar. Your effective rate is total tax divided by total income. Most people are surprised to learn their effective rate is much lower than their marginal rate.

Use our calculator to see your exact state income tax.