TakeHomeTax

Lowest Effective Tax Rate States (2026)

States with the lowest total tax burden as a percentage of income.

#StateTax RateTypeTake-HomeMonthlyEff. RateCost IndexCost-Adj.
1Alaska0%None$78,890$6,57421.1%127$62,118
2Florida0%None$78,890$6,57421.1%100$78,890
3Nevada0%None$78,890$6,57421.1%101$78,109
4New Hampshire0%None$78,890$6,57421.1%108$73,046
5South Dakota0%None$78,890$6,57421.1%92$85,750
6Tennessee0%None$78,890$6,57421.1%90$87,656
7Texas0%None$78,890$6,57421.1%93$84,828
8Washington0%None$78,890$6,57421.1%110$71,718
9Wyoming0%None$78,890$6,57421.1%94$83,926
10North Dakota1.95%Grad.$77,428$6,45222.6%92$84,160
11Arizona2.5%Flat$77,015$6,41823.0%97$79,397
12Louisiana4.25%Grad.$75,703$6,30924.3%91$83,190
13Arkansas4.4%Grad.$75,590$6,29924.4%86$87,895
14Colorado4.4%Flat$75,590$6,29924.4%105$71,990
15North Carolina4.5%Flat$75,515$6,29324.5%95$79,489
16Utah4.65%Flat$75,403$6,28424.6%99$76,164
17Oklahoma4.75%Grad.$75,328$6,27724.7%87$86,583
18Illinois4.95%Flat$75,178$6,26524.8%93$80,836
19Massachusetts5%Flat$75,140$6,26224.9%118$63,678
20Mississippi5%Grad.$75,140$6,26224.9%83$90,530
21Indiana3.05%Flat$75,103$6,25924.9%90$83,447
22Pennsylvania3.07%Flat$75,088$6,25724.9%98$76,620
23West Virginia5.12%Grad.$75,050$6,25424.9%83$90,422
24Georgia5.49%Flat$74,773$6,23125.2%93$80,401
25Ohio3.5%Grad.$74,765$6,23025.2%90$83,072
26Iowa5.7%Grad.$74,615$6,21825.4%89$83,837
27Kansas5.7%Grad.$74,615$6,21825.4%90$82,906
28Virginia5.75%Grad.$74,578$6,21525.4%103$72,405
29Idaho5.8%Flat$74,540$6,21225.5%95$78,463
30Nebraska5.84%Grad.$74,510$6,20925.5%91$81,879
31Montana5.9%Grad.$74,465$6,20525.5%97$76,768
32New Mexico5.9%Grad.$74,465$6,20525.5%91$81,830
33Rhode Island5.99%Grad.$74,398$6,20025.6%105$70,855
34Kentucky4%Flat$74,390$6,19925.6%90$82,656
35Michigan4.25%Flat$74,203$6,18425.8%91$81,541
36South Carolina6.4%Grad.$74,090$6,17425.9%92$80,533
37Missouri4.8%Grad.$73,790$6,14926.2%89$82,910
38Connecticut6.99%Grad.$73,648$6,13726.4%111$66,349
39Alabama5%Grad.$73,640$6,13726.4%88$83,682
40Maine7.15%Grad.$73,528$6,12726.5%98$75,028
41Wisconsin7.65%Grad.$73,153$6,09626.8%93$78,659
42Maryland5.75%Grad.$73,078$6,09026.9%112$65,248
43Delaware6.6%Grad.$72,440$6,03727.6%102$71,020
44Vermont8.75%Grad.$72,328$6,02727.7%105$68,883
45Minnesota9.85%Grad.$71,503$5,95928.5%99$72,225
46New Jersey10.75%Grad.$70,828$5,90229.2%115$61,589
47Hawaii11%Grad.$70,640$5,88729.4%192$36,792
48Oregon9.9%Grad.$69,965$5,83030.0%110$63,605
49New York10.9%Grad.$69,215$5,76830.8%125$55,372
50California13.3%Grad.$68,915$5,74331.1%142$48,532

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