TakeHomeTax

Best States for a $40K Salary (2026)

All 50 states ranked by take-home pay on a $40K salary. See which state lets you keep the most after federal, state, and FICA taxes.

#StateTax RateTypeTake-HomeMonthlyEff. RateCost IndexCost-Adj.
1Alaska0%None$34,263$2,85514.3%127$26,978
2Florida0%None$34,263$2,85514.3%100$34,263
3Nevada0%None$34,263$2,85514.3%101$33,923
4New Hampshire0%None$34,263$2,85514.3%108$31,725
5South Dakota0%None$34,263$2,85514.3%92$37,242
6Tennessee0%None$34,263$2,85514.3%90$38,069
7Texas0%None$34,263$2,85514.3%93$36,841
8Washington0%None$34,263$2,85514.3%110$31,148
9Wyoming0%None$34,263$2,85514.3%94$36,449
10North Dakota1.95%Grad.$33,678$2,80615.8%92$36,606
11Arizona2.5%Flat$33,513$2,79316.2%97$34,549
12Louisiana4.25%Grad.$32,988$2,74917.5%91$36,250
13Arkansas4.4%Grad.$32,943$2,74517.6%86$38,305
14Colorado4.4%Flat$32,943$2,74517.6%105$31,374
15North Carolina4.5%Flat$32,913$2,74317.7%95$34,645
16Utah4.65%Flat$32,868$2,73917.8%99$33,199
17Oklahoma4.75%Grad.$32,838$2,73617.9%87$37,744
18Illinois4.95%Flat$32,778$2,73118.1%93$35,245
19Massachusetts5%Flat$32,763$2,73018.1%118$27,765
20Mississippi5%Grad.$32,763$2,73018.1%83$39,473
21Indiana3.05%Flat$32,748$2,72918.1%90$36,386
22Pennsylvania3.07%Flat$32,742$2,72818.1%98$33,410
23West Virginia5.12%Grad.$32,727$2,72718.2%83$39,430
24Georgia5.49%Flat$32,616$2,71818.5%93$35,070
25Ohio3.5%Grad.$32,613$2,71818.5%90$36,236
26Iowa5.7%Grad.$32,553$2,71318.6%89$36,576
27Kansas5.7%Grad.$32,553$2,71318.6%90$36,169
28Virginia5.75%Grad.$32,538$2,71118.7%103$31,590
29Idaho5.8%Flat$32,523$2,71018.7%95$34,234
30Nebraska5.84%Grad.$32,511$2,70918.7%91$35,726
31Montana5.9%Grad.$32,493$2,70818.8%97$33,497
32New Mexico5.9%Grad.$32,493$2,70818.8%91$35,706
33Rhode Island5.99%Grad.$32,466$2,70518.8%105$30,920
34Kentucky4%Flat$32,463$2,70518.8%90$36,069
35Michigan4.25%Flat$32,388$2,69919.0%91$35,591
36South Carolina6.4%Grad.$32,343$2,69519.1%92$35,155
37Missouri4.8%Grad.$32,223$2,68519.4%89$36,205
38Connecticut6.99%Grad.$32,166$2,68019.6%111$28,978
39Alabama5%Grad.$32,163$2,68019.6%88$36,548
40Maine7.15%Grad.$32,118$2,67619.7%98$32,773
41Wisconsin7.65%Grad.$31,968$2,66420.1%93$34,374
42Maryland5.75%Grad.$31,938$2,66120.2%112$28,516
43Delaware6.6%Grad.$31,683$2,64020.8%102$31,061
44Vermont8.75%Grad.$31,638$2,63620.9%105$30,131
45Minnesota9.85%Grad.$31,308$2,60921.7%99$31,624
46New Jersey10.75%Grad.$31,038$2,58622.4%115$26,989
47Hawaii11%Grad.$30,963$2,58022.6%192$16,126
48Oregon9.9%Grad.$30,693$2,55823.3%110$27,902
49New York10.9%Grad.$30,393$2,53324.0%125$24,314
50California13.3%Grad.$30,273$2,52324.3%142$21,319

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Highest Take-HomeNo Income TaxCheapest StatesRemote Workers$100K Salary
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