The 10 Highest Income Tax States in 2026
California has the highest top rate (13.3%), but Oregon's effective rate at $250,000 income (9.2%) actually exceeds California's (8.2%). The top rate is misleading without bracket context. Here is what you actually pay at different income levels.
Top 10 Highest Income Tax States (2026)
| # | State | Top Rate | Applies Above | Effective @ $75K | Effective @ $100K | Effective @ $250K | Notes |
|---|---|---|---|---|---|---|---|
| 1 | California | 13.3% | $1,000,000+ | 4% | 5.8% | 8.2% | Graduated brackets topping out at 13.3% on income above $1,000,000. Flagged for local income tax in our dataset; the local income tax guide has the jurisdictions and rates. |
| 2 | Hawaii | 11% | $200,000+ | 6.6% | 7.2% | 9.1% | Graduated brackets topping out at 11% on income above $200,000. |
| 3 | New York | 10.9% | $25,000,000+ | 5.5% | 6.1% | 7.2% | Graduated brackets topping out at 10.9% on income above $25,000,000. Flagged for local income tax in our dataset; the local income tax guide has the jurisdictions and rates. |
| 4 | Washington DC | 10.75% | $1,000,000+ | 6.2% | 7% | 8.5% | Graduated brackets topping out at 10.75% on income above $1,000,000. |
| 5 | New Jersey | 10.75% | $1,000,000+ | 4.5% | 5.5% | 7.4% | Graduated brackets topping out at 10.75% on income above $1,000,000. |
| 6 | Oregon | 9.9% | $125,000+ | 7.6% | 8.4% | 9.2% | Graduated brackets topping out at 9.9% on income above $125,000. |
| 7 | Minnesota | 9.85% | $193,240+ | 6.2% | 6.8% | 8.4% | Graduated brackets topping out at 9.85% on income above $193,240. |
| 8 | Massachusetts | 9% | $1,000,000+ | 4.5% | 4.7% | 5% | Flat 5% on ordinary income, rising to 9% on income above $1,000,000. |
| 9 | Vermont | 8.75% | $229,500+ | 5.2% | 5.9% | 7.8% | Graduated brackets topping out at 8.75% on income above $229,500. |
| 10 | Wisconsin | 7.65% | $280,950+ | 5% | 5.4% | 6.8% | Graduated brackets topping out at 7.65% on income above $280,950. |
Membership and ordering of this list are computed from our 51-row state dataset by top marginal rate, with ties broken by the effective rate at $250,000. Nothing here is hand-picked, so this list and the lowest-rate list cannot contradict each other. Effective rates are for single filers taking the standard deduction. Source: state DORs, Tax Foundation. Last updated June 2026.
Top rate is not what you pay
California's 13.3% only applies to income above $1 million. A Californian earning $100,000 pays approximately 5.8% effective. The top rate is a marginal rate on the last dollar, not on all income.
NYC is a special case
New York State tax tops at 10.9% (above $25M). But New York City adds up to 3.876% city tax. A $325,000 earner in NYC faces a combined state and city rate exceeding 10.7%. A very high earner faces up to 14.776%.
Oregon is more expensive than California at $250K
Oregon's 9.9% bracket kicks in at $125,000. California's highest brackets start above $360,000. At $250,000, Oregon's effective rate (9.2%) is higher than California's (8.2%). The bracket threshold matters as much as the rate.
Local income taxes amplify the burden
Some high-income-tax states also have significant local taxes. NYC adds 3.876%. Philadelphia adds 3.75% wage tax. Many Maryland counties add 2.25-3.2%. Factor in local taxes for a complete picture.
What About Local Income Taxes?
New York City charges up to 3.876% city income tax, making NYC the highest combined state-plus-city income tax jurisdiction in the US. Philadelphia charges 3.75% wage tax. Combined with Pennsylvania's 3.07%, Philadelphia residents face 6.82% before federal tax.
Many Maryland counties levy 2.25-3.2% county income tax on top of the state rate (5.75%, rising to 6.5% on income over $1M from 2026). Detroit's 2.4% city tax adds to Michigan's 4.05% flat rate.
Full local income tax guide for all US cities and counties →