TakeHomeTax

Lowest Effective Tax Rate States (2026)

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

#1 State
Alaska
$79,125 take-home
States Ranked
50
Median: Ohio
Spread
$8,645
#1 vs #50 difference

Key Takeaways

This ranking covers 50 states, with Alaska at the top ($79,125 take-home on $100K) and California at the bottom ($70,480). The spread between best and worst is $8,645/year.

The ranking is influenced by state income tax rates, tax structure (flat vs graduated), local taxes, and in cost-adjusted rankings, the cost of living index. States with no income tax generally rank highest for raw take-home pay, but cost adjustments can shuffle the order significantly.

Full Rankings

#StateTax RateTypeTake-HomeMonthlyEff. RateCost IndexCost-Adj.
1Alaska0%None$79,125$6,59420.9%127$62,303
2Florida0%None$79,125$6,59420.9%100$79,125
3Nevada0%None$79,125$6,59420.9%101$78,342
4New Hampshire0%None$79,125$6,59420.9%108$73,264
5South Dakota0%None$79,125$6,59420.9%92$86,005
6Tennessee0%None$79,125$6,59420.9%90$87,917
7Texas0%None$79,125$6,59420.9%93$85,081
8Washington0%None$79,125$6,59420.9%110$71,932
9Wyoming0%None$79,125$6,59420.9%94$84,176
10North Dakota1.95%Grad.$77,858$6,48822.1%92$84,628
11Arizona2.5%Flat$76,625$6,38523.4%97$78,995
12Arkansas3.9%Grad.$76,590$6,38323.4%86$89,058
13Louisiana4.25%Grad.$76,363$6,36423.6%91$83,915
14Nebraska4.55%Grad.$76,168$6,34723.8%91$83,701
15Oklahoma4.75%Grad.$76,038$6,33624.0%87$87,399
16Mississippi5%Grad.$75,875$6,32324.1%83$91,416
17West Virginia5.12%Grad.$75,797$6,31624.2%83$91,322
18Montana5.65%Grad.$75,453$6,28824.5%97$77,786
19Kansas5.7%Grad.$75,420$6,28524.6%90$83,800
20Virginia5.75%Grad.$75,388$6,28224.6%103$73,192
21Iowa3.8%Flat$75,325$6,27724.7%89$84,635
22New Mexico5.9%Grad.$75,290$6,27424.7%91$82,736
23Rhode Island5.99%Grad.$75,232$6,26924.8%105$71,649
24North Carolina3.99%Flat$75,135$6,26124.9%95$79,089
25South Carolina6.4%Grad.$74,965$6,24725.0%92$81,484
26Ohio2.75%Flat$74,875$6,24025.1%90$83,194
27Colorado4.4%Flat$74,725$6,22725.3%105$71,167
28Indiana2.95%Flat$74,675$6,22325.3%90$82,972
29Connecticut6.99%Grad.$74,582$6,21525.4%111$67,191
30Pennsylvania3.07%Flat$74,555$6,21325.4%98$76,077
31Missouri4.8%Grad.$74,505$6,20925.5%89$83,713
32Maine7.15%Grad.$74,478$6,20625.5%98$75,997
33Utah4.65%Flat$74,475$6,20625.5%99$75,227
34Alabama5%Grad.$74,375$6,19825.6%88$84,517
35Illinois4.95%Flat$74,175$6,18125.8%93$79,758
36Wisconsin7.65%Grad.$74,153$6,17925.8%93$79,734
37Kentucky3.5%Flat$74,125$6,17725.9%90$82,361
38Massachusetts5%Flat$74,125$6,17725.9%118$62,818
39Georgia5.19%Flat$73,935$6,16126.1%93$79,500
40Maryland5.75%Grad.$73,888$6,15726.1%112$65,971
41Idaho5.3%Flat$73,825$6,15226.2%95$77,711
42Vermont8.75%Grad.$73,438$6,12026.6%105$69,940
43Michigan4.25%Flat$73,375$6,11526.6%91$80,632
44Delaware6.6%Grad.$73,335$6,11126.7%102$71,897
45Minnesota9.85%Grad.$72,723$6,06027.3%99$73,457
46New Jersey10.75%Grad.$72,138$6,01127.9%115$62,728
47Hawaii11%Grad.$71,975$5,99828.0%192$37,487
48Oregon9.9%Grad.$71,190$5,93328.8%110$64,718
49New York10.9%Grad.$70,540$5,87829.5%125$56,432
50California13.3%Grad.$70,480$5,87329.5%142$49,634
Pro Tip
Use the take-home calculator to model your specific salary and filing status. Rankings based on $100K may look different at your actual income level, especially in graduated-tax states.

Related Rankings

States With the Highest Take-Home PayStates With the Lowest Take-Home PayHighest Effective Tax Rate States9 States With No Income TaxStates With Flat Income Tax RatesStates With Graduated Income Tax
The Take-Home Tax Guide
Weekly tips on reducing your tax burden, state tax changes, and salary negotiation strategies. Free.