Monday, June 15, 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
$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
| # | State | Tax Rate | Type | Take-Home | Monthly | Eff. Rate | Cost Index | Cost-Adj. |
|---|---|---|---|---|---|---|---|---|
| 1 | North Dakota | 2.5% | Grad. | $77,500 | $6,458 | 22.5% | 92 | $84,239 |
| 2 | Arkansas | 3.9% | Grad. | $76,590 | $6,383 | 23.4% | 86 | $89,058 |
| 3 | Oklahoma | 4.5% | Grad. | $76,200 | $6,350 | 23.8% | 87 | $87,586 |
| 4 | Nebraska | 4.55% | Grad. | $76,168 | $6,347 | 23.8% | 91 | $83,701 |
| 5 | West Virginia | 4.82% | Grad. | $75,992 | $6,333 | 24.0% | 83 | $91,557 |
| 6 | Alabama | 5% | Grad. | $75,875 | $6,323 | 24.1% | 88 | $86,222 |
| 7 | Kansas | 5.58% | Grad. | $75,498 | $6,292 | 24.5% | 90 | $83,887 |
| 8 | Montana | 5.65% | Grad. | $75,453 | $6,288 | 24.5% | 97 | $77,786 |
| 9 | Maryland | 5.75% | Grad. | $75,388 | $6,282 | 24.6% | 112 | $67,310 |
| 10 | Virginia | 5.75% | Grad. | $75,388 | $6,282 | 24.6% | 103 | $73,192 |
| 11 | New Mexico | 5.9% | Grad. | $75,290 | $6,274 | 24.7% | 91 | $82,736 |
| 12 | Rhode Island | 5.99% | Grad. | $75,232 | $6,269 | 24.8% | 105 | $71,649 |
| 13 | South Carolina | 6% | Grad. | $75,225 | $6,269 | 24.8% | 92 | $81,766 |
| 14 | Delaware | 6.6% | Grad. | $74,835 | $6,236 | 25.2% | 102 | $73,368 |
| 15 | Connecticut | 6.99% | Grad. | $74,582 | $6,215 | 25.4% | 111 | $67,191 |
| 16 | Maine | 7.15% | Grad. | $74,478 | $6,206 | 25.5% | 98 | $75,997 |
| 17 | Wisconsin | 7.65% | Grad. | $74,153 | $6,179 | 25.8% | 93 | $79,734 |
| 18 | Vermont | 8.75% | Grad. | $73,438 | $6,120 | 26.6% | 105 | $69,940 |
| 19 | Minnesota | 9.85% | Grad. | $72,723 | $6,060 | 27.3% | 99 | $73,457 |
| 20 | Oregon | 9.9% | Grad. | $72,690 | $6,058 | 27.3% | 110 | $66,082 |
| 21 | New Jersey | 10.75% | Grad. | $72,138 | $6,011 | 27.9% | 115 | $62,728 |
| 22 | New York | 10.9% | Grad. | $72,040 | $6,003 | 28.0% | 125 | $57,632 |
| 23 | Hawaii | 11% | Grad. | $71,975 | $5,998 | 28.0% | 192 | $37,487 |
| 24 | California | 13.3% | Grad. | $70,480 | $5,873 | 29.5% | 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.