Wednesday, September 9, 2026·2026 Edition
States With Graduated Income Tax (2026)
States that tax higher income at higher rates. See how brackets affect your take-home pay at every salary level.
#1 State
North Dakota
$78,434 take-home
States Ranked
25
Median: South Carolina
Spread
$7,502
#1 vs #25 difference
Key Takeaways
Graduated (progressive) income tax states charge higher rates on higher income. This means lower earners pay less as a percentage, but high earners can face steep marginal rates. Currently 25 states use graduated brackets.
Among graduated-tax states, North Dakota provides the highest take-home pay on $100K at $78,434, while Oregon takes the most at $70,932. The top marginal rates in these states range from 2.5% to 13.3%.
Full Rankings
| # | State | Tax Rate | Type | Take-Home | Monthly | Eff. Rate | Cost Index | Cost-Adj. |
|---|---|---|---|---|---|---|---|---|
| 1 | North Dakota | 2.5% | Grad. | $78,434 | $6,536 | 21.6% | 92 | $85,255 |
| 2 | Rhode Island | 5.99% | Grad. | $75,692 | $6,308 | 24.3% | 105 | $72,087 |
| 3 | New Mexico | 5.9% | Grad. | $75,556 | $6,296 | 24.4% | 91 | $83,028 |
| 4 | Arkansas | 3.9% | Grad. | $75,400 | $6,283 | 24.6% | 86 | $87,674 |
| 5 | Missouri | 4.7% | Grad. | $75,389 | $6,282 | 24.6% | 89 | $84,706 |
| 6 | West Virginia | 4.82% | Grad. | $75,240 | $6,270 | 24.8% | 83 | $90,650 |
| 7 | Nebraska | 4.55% | Grad. | $75,237 | $6,270 | 24.8% | 91 | $82,678 |
| 8 | Oklahoma | 4.5% | Grad. | $75,081 | $6,257 | 24.9% | 87 | $86,300 |
| 9 | Alabama | 5% | Grad. | $75,026 | $6,252 | 25.0% | 88 | $85,257 |
| 10 | New Jersey | 10.75% | Grad. | $74,945 | $6,245 | 25.1% | 115 | $65,170 |
| 11 | Vermont | 8.75% | Grad. | $74,907 | $6,242 | 25.1% | 105 | $71,340 |
| 12 | Montana | 5.65% | Grad. | $74,836 | $6,236 | 25.2% | 97 | $77,150 |
| 13 | South Carolina | 6% | Grad. | $74,733 | $6,228 | 25.3% | 92 | $81,231 |
| 14 | Wisconsin | 7.65% | Grad. | $74,641 | $6,220 | 25.4% | 93 | $80,259 |
| 15 | Connecticut | 6.99% | Grad. | $74,375 | $6,198 | 25.6% | 111 | $67,005 |
| 16 | Kansas | 5.58% | Grad. | $74,345 | $6,195 | 25.7% | 90 | $82,605 |
| 17 | New York | 10.9% | Grad. | $74,265 | $6,189 | 25.7% | 125 | $59,412 |
| 18 | Virginia | 5.75% | Grad. | $74,121 | $6,177 | 25.9% | 103 | $71,962 |
| 19 | Delaware | 6.6% | Grad. | $73,918 | $6,160 | 26.1% | 102 | $72,468 |
| 20 | Minnesota | 9.85% | Grad. | $73,814 | $6,151 | 26.2% | 99 | $74,559 |
| 21 | California | 13.3% | Grad. | $73,798 | $6,150 | 26.2% | 142 | $51,970 |
| 22 | Maine | 7.15% | Grad. | $73,635 | $6,136 | 26.4% | 98 | $75,137 |
| 23 | Hawaii | 11% | Grad. | $73,242 | $6,103 | 26.8% | 192 | $38,147 |
| 24 | Maryland | 6.5% | Grad. | $71,687 | $5,974 | 28.3% | 112 | $64,006 |
| 25 | Oregon | 9.9% | Grad. | $70,932 | $5,911 | 29.1% | 110 | $64,484 |
Pro Tip
In graduated states, your marginal rate matters most for raises and bonuses. A $10K raise in a state with a 9%+ top bracket costs you $900+ in additional state tax — compared to $0 in a no-tax state.