TakeHomeTax

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
$77,500 take-home
States Ranked
24
Median: South Carolina
Spread
$7,020
#1 vs #24 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 24 states use graduated brackets.

Among graduated-tax states, North Dakota provides the highest take-home pay on $100K at $77,500, while California takes the most at $70,480. The top marginal rates in these states range from 2.5% to 13.3%.

Full Rankings

#StateTax RateTypeTake-HomeMonthlyEff. RateCost IndexCost-Adj.
1North Dakota2.5%Grad.$77,500$6,45822.5%92$84,239
2Arkansas3.9%Grad.$76,590$6,38323.4%86$89,058
3Oklahoma4.5%Grad.$76,200$6,35023.8%87$87,586
4Nebraska4.55%Grad.$76,168$6,34723.8%91$83,701
5West Virginia4.82%Grad.$75,992$6,33324.0%83$91,557
6Alabama5%Grad.$75,875$6,32324.1%88$86,222
7Kansas5.58%Grad.$75,498$6,29224.5%90$83,887
8Montana5.65%Grad.$75,453$6,28824.5%97$77,786
9Maryland5.75%Grad.$75,388$6,28224.6%112$67,310
10Virginia5.75%Grad.$75,388$6,28224.6%103$73,192
11New Mexico5.9%Grad.$75,290$6,27424.7%91$82,736
12Rhode Island5.99%Grad.$75,232$6,26924.8%105$71,649
13South Carolina6%Grad.$75,225$6,26924.8%92$81,766
14Delaware6.6%Grad.$74,835$6,23625.2%102$73,368
15Connecticut6.99%Grad.$74,582$6,21525.4%111$67,191
16Maine7.15%Grad.$74,478$6,20625.5%98$75,997
17Wisconsin7.65%Grad.$74,153$6,17925.8%93$79,734
18Vermont8.75%Grad.$73,438$6,12026.6%105$69,940
19Minnesota9.85%Grad.$72,723$6,06027.3%99$73,457
20Oregon9.9%Grad.$72,690$6,05827.3%110$66,082
21New Jersey10.75%Grad.$72,138$6,01127.9%115$62,728
22New York10.9%Grad.$72,040$6,00328.0%125$57,632
23Hawaii11%Grad.$71,975$5,99828.0%192$37,487
24California13.3%Grad.$70,480$5,87329.5%142$49,634
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.

Related Rankings

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