States With the Lowest Taxes on $1 Million of Income (2026)

The published 50-state ranking

See how state income tax compares on $1 million of taxable income. Your filing status and type of income can change the result.

Higher scores mean a stronger result on the factors this guide measures. They do not guarantee a better fit for your household or investment. Ties stay tied, and missing data is clearly marked.

Taxstra’s published 2026 ranking. One methodology, applied consistently to every state. See the factors and scoring rules.

Pick a state. See how it fits.

Explore grades out of 10, category ranks and the tradeoffs behind them. Each state uses the same published factors and weights.

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1 / 1010 / 10

Gray = unavailable or provisional; no comparable rank. Alaska and Hawaii shown as insets.

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Boundaries: U.S. Census Bureau / US Atlas.

Why Illinois scores this way

Illinois ranks #28 of 50, with $49,500. The category tiles show its strengths and tradeoffs.

A higher category score means a stronger result on that measure. Check the “Good fit for” and “Less suited to” notes against your own priorities.

Full state analysis Grading methodology

2026 state guide

$1 million of income

Illinois

Taxstra’s state comparison

5.3/ 10

Tax-cost grade · lower tax scores higher#28 in the comparison

How to read this score

2026 regular state wage tax before credits on the stated state-taxable-income base. One earner; state AGI assumed equal to the stated taxable base for recapture calculations. Excludes local, payroll, federal and entity taxes. Equal taxable income is not equal gross household income. Missing schedules remain unranked.

Tax on $250K taxable wages

#33 of 50 · Not in overall score

4.8/10

$12,375 in state tax for a married couple filing jointly at this taxable income; credits and local taxes are excluded.

Tax on $500K taxable wages

#28 of 50 · Not in overall score

5.2/10

$24,750 in state tax for a married couple filing jointly at this taxable income; credits and local taxes are excluded.

Tax on $1M taxable wages

#28 of 50 · 100% weight

5.3/10

$49,500 in state tax for a married couple filing jointly at this taxable income; credits and local taxes are excluded.

Tax on $2M taxable wages

#28 of 50 · Not in overall score

5.9/10

$99,000 in state tax for a married couple filing jointly at this taxable income; credits and local taxes are excluded.

Good fit for

Wage earners comparing Illinois job offers against the $49,500 state-tax benchmark on a $1 million taxable base

Less suited to

Households applying a taxable-wage benchmark directly to gross salary, business profit or investment gains

Illinois: full analysis and evidenceRead the state-specific explanation and supporting sources.

Illinois

Back to comparison ↑

Median home $280,700Monthly gross rent $1,322HO-3 premium, 2023 $1,480

Illinois’s $1 million state-taxable wage benchmark is $49,500 before credits. An owner receiving both salary and K-1 income needs the replacement-tax and PTET layers modeled separately from this wage result.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $49,500 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Illinois DOR current income-tax rates (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Illinois retirement-tax details

Cite the state. Include the method.

Use the state, guide title, published methodology and source years when citing a score. State selection changes the card, not the ranking methodology.

Media and interview inquiries · Source data · Taxstra methodology

Full ranking table · 50 of 50 statesCompare every state’s rank, housing costs, property taxes and tax treatment.

50 of 50 states

$1 million of income: economic observations and tax context
Rank	State	State wage tax: $1,000,000 taxable, joint	Home value ACS 2024	Property-tax bill ACS 2024 median	Price index BEA 2024	Individual bonus treatment
1	Alaska	$010.0 / 10 category grade	$376,500	$3,976	102.4	Alaska does not impose a broad individual income tax.
1	Florida	$010.0 / 10 category grade	$396,900	$2,993	103.4	Florida does not impose a broad individual income tax.
1	Nevada	$010.0 / 10 category grade	$455,500	$2,143	100.0	Nevada does not impose a broad individual income tax.
1	New Hampshire	$010.0 / 10 category grade	$458,800	$6,707	104.2	New Hampshire does not impose a broad individual income tax.
1	South Dakota	$010.0 / 10 category grade	$289,600	$2,940	88.6	South Dakota does not impose a broad individual income tax.
1	Tennessee	$010.0 / 10 category grade	$332,600	$1,488	91.9	Tennessee does not impose a broad individual income tax.
1	Texas	$010.0 / 10 category grade	$313,200	$4,108	97.1	Texas does not impose a broad individual income tax.
1	Washington	$010.0 / 10 category grade	$602,200	$4,729	107.0	Washington does not impose a broad individual income tax.
1	Wyoming	$010.0 / 10 category grade	$339,500	$1,947	92.7	Wyoming does not impose a broad individual income tax.
10	North Dakota	$21,7098.0 / 10 category grade	$266,100	$2,550	89.0	North Dakota follows the federal deductions through its current federal income starting point.
11	Arizona	$25,0007.6 / 10 category grade	$426,000	$1,828	100.7	Individuals retain the full federal §168(k) bonus amount for eligible new property in 2026; §168(n) is separately added back.
12	Ohio	$27,1167.4 / 10 category grade	$239,800	$2,937	92.8	For §168(k), generally add back five-sixths and deduct one-fifth of that addback in each of the next five years. Payroll-growth and NOL exceptions can change the result; §168(n) generally follows federal law.
13	Indiana	$29,5007.2 / 10 category grade	$243,500	$1,798	93.3	Add back federal bonus depreciation and maintain Indiana basis for later depreciation or disposition.
14	Louisiana	$30,0007.2 / 10 category grade	$223,200	$1,187	88.2	Louisiana offers an optional state 100% expensing deduction for qualifying property; later federal depreciation on the same basis is added back.
15	Pennsylvania	$30,7007.1 / 10 category grade	$277,600	$3,214	97.6	Pennsylvania personal income tax uses its own depreciation rules rather than the federal bonus amount.
16	Kentucky	$35,0006.7 / 10 category grade	$226,000	$1,611	90.2	Kentucky does not adopt the current federal bonus provisions; use Kentucky depreciation.
17	Arkansas	$36,9206.5 / 10 category grade	$215,600	$1,113	86.9	Federal bonus depreciation is not adopted; use the Arkansas depreciation computation.
18	Iowa	$38,0006.4 / 10 category grade	$227,300	$2,937	87.8	Iowa follows current federal depreciation, including §168(k) and §168(n), for 2026 to 2027.
19	Mississippi	$39,6006.3 / 10 category grade	$186,500	$1,221	87.0	Mississippi permits a state 100% first-year deduction for qualifying depreciable property; it is not simple federal bonus conformity.
20	North Carolina	$39,9006.2 / 10 category grade	$333,000	$2,044	94.3	Add back 85% of the federal accelerated-depreciation amount, then deduct 20% of that addition in each of the next five years.
21	Michigan	$42,5006.0 / 10 category grade	$254,200	$2,988	96.2	For individuals and flow-through entities, Michigan retains the pre-OBBBA phaseout: 20% federal bonus in 2026 and 0% in 2027; §168(n) is disallowed.
22	Colorado	$44,0005.9 / 10 category grade	$574,600	$2,828	103.1	Colorado follows the federal deductions for §168(k) bonus and §168(n) qualified production property.
23	Utah	$44,5005.8 / 10 category grade	$545,200	$2,648	98.9	Utah starts with current federal adjusted gross income and does not enumerate a §168(k) or §168(n) reversal.
24	Oklahoma	$44,5715.8 / 10 category grade	$222,100	$1,672	87.8	Oklahoma permits a state 100% expensing election for qualifying property; it is not simple federal bonus conformity.
25	Nebraska	$44,8985.8 / 10 category grade	$263,100	$3,739	90.1	Nebraska follows the current federal depreciation deduction for 2026 to 2027.
26	West Virginia	$45,0035.8 / 10 category grade	$170,800	$881	89.5	West Virginia adopted the 2025 federal changes, so §168(k) and §168(n) flow through for 2026 to 2027.
27	Missouri	$46,8205.6 / 10 category grade	$254,400	$2,021	90.8	Missouri follows current federal depreciation and does not require a bonus addback for current property.
28	Illinois	$49,5005.3 / 10 category grade	$280,700	$5,399	100.0	Reverse federal §168(k)/§168(n) amounts and compute the Illinois depreciation modification.
29	Georgia	$49,9005.3 / 10 category grade	$343,300	$2,554	96.3	Use Georgia depreciation without federal §168(k) or §168(n).
30	Alabama	$49,9205.3 / 10 category grade	$233,300	$890	88.8	Follows the federal §168(k) and §168(n) deductions for 2026 to 2027.
31	Massachusetts	$50,0005.3 / 10 category grade	$607,400	$6,080	105.8	§168(k) remains disallowed. §168(n) is disallowed for 2026 and follows federal law beginning in 2027.
32	South Carolina	$51,1345.2 / 10 category grade	$299,500	$1,337	93.7	Use South Carolina depreciation without federal §168(k) or §168(n).
33	Idaho	$52,4775.1 / 10 category grade	$446,400	$1,912	95.5	Add back the federal bonus difference in the first year; deduct later Idaho-versus-federal depreciation differences.
34	New Mexico	$55,0394.8 / 10 category grade	$279,900	$1,776	92.2	Ordinary §168(k) bonus flows into individual income in 2026. The enacted 2027 depreciation reversal changes the corporate base, not the individual base.
35	Montana	$55,5984.8 / 10 category grade	$425,400	$2,939	94.6	Montana begins with the current federal income base and has no current bonus-depreciation addback.
36	Kansas	$55,6254.8 / 10 category grade	$238,700	$2,983	90.1	Current Kansas statutes recognize federal §168(k); a direct current official statement on §168(n) was not located.
37	Rhode Island	$56,7684.6 / 10 category grade	$455,700	$4,886	102.3	Compute depreciation and basis as though federal bonus depreciation had not been enacted.
38	Virginia	$57,2434.6 / 10 category grade	$403,500	$2,872	101.1	Recompute Virginia depreciation as though the federal bonus provisions did not apply.
39	Maryland	$57,3234.6 / 10 category grade	$436,300	$4,144	105.0	Generally decoupled from federal bonus; qualifying manufacturing property may receive different treatment.
40	Delaware	$64,9843.9 / 10 category grade	$371,600	$1,750	99.8	Ordinary eligible 2026 property retains 20% bonus under the pre-OBBBA schedule; the rest follows regular depreciation.
41	Wisconsin	$65,2703.8 / 10 category grade	$294,700	$3,680	94.1	Wisconsin does not adopt federal §168(k) or §168(n); compute Wisconsin depreciation separately.
42	New York	$68,5003.5 / 10 category grade	$449,800	$6,542	107.9	Reverse federal §168(k) and §168(n) deductions and claim New York depreciation.
43	Connecticut	$68,9003.5 / 10 category grade	$396,900	$6,573	103.6	Add back 100% of federal bonus, then deduct 25% of the addition in each of the next four years.
44	Maine	$70,4603.4 / 10 category grade	$341,900	$3,103	97.1	Add back the federal bonus amount and claim depreciation under Maine’s pro-forma computation.
45	New Jersey	$72,6583.2 / 10 category grade	$496,000	$9,358	108.8	New Jersey does not follow the federal bonus deduction; calculate New Jersey depreciation and basis separately.
46	Vermont	$79,1112.5 / 10 category grade	$352,800	$5,026	98.0	Vermont disallows §168(k) and §168(n), then permits recovery under the non-bonus depreciation schedule.
47	California	$88,7341.6 / 10 category grade	$759,500	$5,369	110.7	California does not conform to federal bonus depreciation; compute California depreciation separately.
48	Minnesota	$89,0041.6 / 10 category grade	$344,600	$3,501	98.6	For §168(k), add back 80% and deduct one-fifth of that addition in each of the next five years. Qualified production property under §168(n) is not added back.
49	Hawaii	$90,4321.5 / 10 category grade	$875,900	$2,385	110.0	Hawaii does not allow the federal bonus deduction; compute Hawaii depreciation separately.
50	Oregon	$95,4871.0 / 10 category grade	$497,500	$3,895	103.4	Oregon disallows federal bonus depreciation for 2026 to 2027; implementing recovery instructions are pending.

Income-tax scenarios and local taxesExplore the published income levels, filing statuses and named local examples.

Published income-tax scenarios

These preset tables show separate filing statuses and income types at four stated amounts. Viewing another scenario does not change the guide’s published ranking.

Calculation scope: the figures apply verified schedules to separately supplied state taxable income, with wage and ordinary-business modes. State AGI is explicitly assumed equal to the stated taxable base when a recapture calculation needs it. They are not gross-income or combined state/local estimates. Business mode uses a separately supplied ordinary-business taxable base and applies Ohio’s qualifying business deduction; it does not derive a return from gross profit. Full household and capital-gain computations remain separate.

State schedule sensitivity, 2026 · no local tax included · missing results are not zero
State	$250,000	$500,000	$1,000,000	$2,000,000	Evidence
Alabama	$12,4204.97% of taxable income	$24,9204.98% of taxable income	$49,9204.99% of taxable income	$99,9205.00% of taxable income	State schedule
Alaska	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	State schedule
Arizona	$6,2502.50% of taxable income	$12,5002.50% of taxable income	$25,0002.50% of taxable income	$50,0002.50% of taxable income	State schedule
Arkansas	$9,1703.67% of taxable income	$18,4203.68% of taxable income	$36,9203.69% of taxable income	$73,9203.70% of taxable income	State schedule
California	$15,8856.35% of taxable income	$39,1357.83% of taxable income	$88,7348.87% of taxable income	$216,37010.82% of taxable income	State schedule
Colorado	$11,0004.40% of taxable income	$22,0004.40% of taxable income	$44,0004.40% of taxable income	$88,0004.40% of taxable income	State schedule
Connecticut	$13,2005.28% of taxable income	$30,8006.16% of taxable income	$68,9006.89% of taxable income	$139,7006.98% of taxable income	State schedule
Delaware	$15,4846.19% of taxable income	$31,9846.40% of taxable income	$64,9846.50% of taxable income	$130,9846.55% of taxable income	State schedule
Florida	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	State schedule
Georgia	$12,4754.99% of taxable income	$24,9504.99% of taxable income	$49,9004.99% of taxable income	$99,8004.99% of taxable income	State schedule
Hawaii	$16,7826.71% of taxable income	$37,4327.49% of taxable income	$90,4329.04% of taxable income	$200,43210.02% of taxable income	State schedule
Idaho	$12,7275.09% of taxable income	$25,9775.20% of taxable income	$52,4775.25% of taxable income	$105,4775.27% of taxable income	State schedule
Illinois	$12,3754.95% of taxable income	$24,7504.95% of taxable income	$49,5004.95% of taxable income	$99,0004.95% of taxable income	State schedule
Indiana	$7,3752.95% of taxable income	$14,7502.95% of taxable income	$29,5002.95% of taxable income	$59,0002.95% of taxable income	State schedule
Iowa	$9,5003.80% of taxable income	$19,0003.80% of taxable income	$38,0003.80% of taxable income	$76,0003.80% of taxable income	State schedule
Kansas	$13,7755.51% of taxable income	$27,7255.55% of taxable income	$55,6255.56% of taxable income	$111,4255.57% of taxable income	State schedule
Kentucky	$8,7503.50% of taxable income	$17,5003.50% of taxable income	$35,0003.50% of taxable income	$70,0003.50% of taxable income	State schedule
Louisiana	$7,5003.00% of taxable income	$15,0003.00% of taxable income	$30,0003.00% of taxable income	$60,0003.00% of taxable income	State schedule
Maine	$16,8356.73% of taxable income	$34,7106.94% of taxable income	$70,4607.05% of taxable income	$151,9607.60% of taxable income	State schedule
Maryland	$12,3234.93% of taxable income	$26,5735.31% of taxable income	$57,3235.73% of taxable income	$121,8236.09% of taxable income	State schedule
Massachusetts	$12,5005.00% of taxable income	$25,0005.00% of taxable income	$50,0005.00% of taxable income	$135,6906.78% of taxable income	State schedule
Michigan	$10,6254.25% of taxable income	$21,2504.25% of taxable income	$42,5004.25% of taxable income	$85,0004.25% of taxable income	State schedule
Minnesota	$16,8876.75% of taxable income	$39,7547.95% of taxable income	$89,0048.90% of taxable income	$187,5049.38% of taxable income	State schedule
Mississippi	$9,6003.84% of taxable income	$19,6003.92% of taxable income	$39,6003.96% of taxable income	$79,6003.98% of taxable income	State schedule
Missouri	$11,5704.63% of taxable income	$23,3204.66% of taxable income	$46,8204.68% of taxable income	$93,8204.69% of taxable income	State schedule
Montana	$13,2235.29% of taxable income	$27,3485.47% of taxable income	$55,5985.56% of taxable income	$112,0985.60% of taxable income	State schedule
Nebraska	$10,7734.31% of taxable income	$22,1484.43% of taxable income	$44,8984.49% of taxable income	$90,3984.52% of taxable income	State schedule
Nevada	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	State schedule
New Hampshire	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	State schedule
New Jersey	$11,8834.75% of taxable income	$27,8085.56% of taxable income	$72,6587.27% of taxable income	$180,1589.01% of taxable income	State schedule
New Mexico	$11,4394.58% of taxable income	$25,5395.11% of taxable income	$55,0395.50% of taxable income	$114,0395.70% of taxable income	State schedule
New York	$14,7505.90% of taxable income	$34,2506.85% of taxable income	$68,5006.85% of taxable income	$137,0006.85% of taxable income	State schedule
North Carolina	$9,9753.99% of taxable income	$19,9503.99% of taxable income	$39,9003.99% of taxable income	$79,8003.99% of taxable income	State schedule
North Dakota	$3,2601.30% of taxable income	$9,2091.84% of taxable income	$21,7092.17% of taxable income	$46,7092.34% of taxable income	State schedule
Ohio	$6,4912.60% of taxable income	$13,3662.67% of taxable income	$27,1162.71% of taxable income	$54,6162.73% of taxable income	State schedule
Oklahoma	$10,8214.33% of taxable income	$22,0714.41% of taxable income	$44,5714.46% of taxable income	$89,5714.48% of taxable income	State schedule
Oregon	$21,2378.49% of taxable income	$45,9879.20% of taxable income	$95,4879.55% of taxable income	$194,4879.72% of taxable income	State schedule
Pennsylvania	$7,6753.07% of taxable income	$15,3503.07% of taxable income	$30,7003.07% of taxable income	$61,4003.07% of taxable income	State schedule
Rhode Island	$11,8434.74% of taxable income	$26,8185.36% of taxable income	$56,7685.68% of taxable income	$116,6685.83% of taxable income	State schedule
South Carolina	$12,0594.82% of taxable income	$25,0845.02% of taxable income	$51,1345.11% of taxable income	$103,2345.16% of taxable income	State schedule
South Dakota	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	State schedule
Tennessee	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	State schedule
Texas	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	State schedule
Utah	$11,1254.45% of taxable income	$22,2504.45% of taxable income	$44,5004.45% of taxable income	$89,0004.45% of taxable income	State schedule
Vermont	$14,2005.68% of taxable income	$35,3617.07% of taxable income	$79,1117.91% of taxable income	$166,6118.33% of taxable income	State schedule
Virginia	$14,1185.65% of taxable income	$28,4935.70% of taxable income	$57,2435.72% of taxable income	$114,7435.74% of taxable income	State schedule
Washington	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	State schedule
West Virginia	$10,6534.26% of taxable income	$22,1034.42% of taxable income	$45,0034.50% of taxable income	$90,8034.54% of taxable income	State schedule
Wisconsin	$12,4454.98% of taxable income	$27,0205.40% of taxable income	$65,2706.53% of taxable income	$141,7707.09% of taxable income	State schedule
Wyoming	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	$00.00% of taxable income	State schedule

New York City adds a local income tax

This 2026 example separates New York State tax from New York City resident tax. It assumes a full-year city resident with ordinary wage income, before credits.

Published assumptions: married filing jointly; $1 million NY State taxable income, $1 million NY adjusted gross income and $1 million NYC taxable income. Taxable income is after applicable deductions and adjustments; AGI is separately specified for state benefit recapture. These amounts do not mean gross household pay.

NY State tax, including recapture: $68,500.00
Additional NYC resident tax: $38,536.00

Uses the official 2026 estimated-tax schedules. Excludes credits, alternative minimum tax, MCTMT, Yonkers tax, federal tax and payroll tax. This is a named NYC resident example, not a statewide local-tax average. Educational, not individualized tax advice.

Sources and verification dates

New York 2026 IT-2105-I estimate schedules and benefit-recapture worksheetsVerified 2026-09-12. Applies to the 2026 illustration.

What changes the comparisonThe tax, legal and financial tradeoffs behind the ranking.

A million dollars of wages, business profit and capital gains can produce different state taxes. The verified ranking uses $1 million of state taxable wage income; business and gain outcomes require their own tax-base and entity rules.

Exactly $1 million does not cross every million-dollar threshold

Massachusetts’s 2026 surtax threshold is $1,107,750. Maine’s new threshold is $1 million single and $1.5 million joint, with surcharge only on the excess. New Jersey’s higher individual bracket begins above $1 million.

Washington illustrates why income type matters

Washington has no 2026 wage income tax. It does impose a separate excise on taxable Washington long-term capital gains, while its newly enacted broad individual income tax starts in 2028. A wage zero cannot be copied into a gain scenario.

A business sale needs its own model

Identify stock versus asset sale, ordinary recapture versus capital gain, source state, resident state, entity-level tax and credit interaction. The wage schedule should not produce a numeric business-sale answer when those facts are absent.

Put the numbers in contextA worked example with explicit assumptions.

If a business sells for $1 million but has $400,000 of tax basis, proceeds and gain differ by $400,000 before selling costs and other adjustments. The taxable components require allocation; the headline sale price cannot simply be multiplied by a state rate.

Illustration only. These assumptions describe the example, not an expected client result.

Every state, explainedBrowse all 50 state chapters, with detailed analysis and linked evidence.

AlabamaRead state analysis

Alabama

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Median home $233,300Monthly gross rent $1,077HO-3 premium, 2023 $1,906

Alabama reaches its 5% ordinary rate at low taxable-income thresholds. Its federal-income-tax deduction makes a comparison using federal taxable income especially misleading: use the Alabama taxable base after state adjustments.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $49,920 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Alabama DOR individual tax rates (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Alabama retirement-tax details

AlaskaRead state analysis

Alaska

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Median home $376,500Monthly gross rent $1,444HO-3 premium, 2023 $1,216

Alaska ties the other verified zero-wage-tax states in the 2026 state-only comparison. The tie should remain visible; a property or sales-tax assumption cannot be inserted into an income-tax ranking without changing the metric.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $0 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Alaska government tax facts (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Alaska retirement-tax details

ArizonaRead state analysis

Arizona

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Median home $426,000Monthly gross rent $1,672HO-3 premium, 2023 $1,194

Arizona’s ordinary state-taxable-income schedule produces the same 2.5% marginal rate at $250,000 and $2 million. This does not make payroll, sales taxes or the gross-to-taxable calculation disappear.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $25,000 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Arizona retirement-tax details

ArkansasRead state analysis

Arkansas

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Median home $215,600Monthly gross rent $982HO-3 premium, 2023 $1,870

Arkansas uses separate lower- and upper-income tables with a bracket adjustment between them. Only taxable income of at least $97,601 is computed here, which covers the four high-income guide benchmarks without inventing the adjustment.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $36,920 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Arkansas DFA 2026 special-session SB1 fiscal impact (2026; 2026-09-12)
Arkansas SB1, Act 2 of the 2026 special session (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Arkansas retirement-tax details

CaliforniaRead state analysis

California

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Median home $759,500Monthly gross rent $2,104HO-3 premium, 2023 $1,655

California’s FTB issued its 2026 indexing memorandum on September 3. The regular wage calculation uses those updated brackets and adds the 1% behavioral health services tax only above $1 million of taxable income.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $88,734 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the California retirement-tax details

ColoradoRead state analysis

Colorado

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Median home $574,600Monthly gross rent $1,822HO-3 premium, 2023 $2,492

The Colorado number is explicitly a regular-tax estimate based on the published 2026 worksheet. It excludes alternative minimum tax and recapture, so it is not a completed Colorado return liability.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $44,000 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Colorado retirement-tax details

ConnecticutRead state analysis

Connecticut

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Median home $396,900Monthly gross rent $1,550HO-3 premium, 2023 $2,036

Connecticut’s estimate includes the initial brackets, 2% benefit phaseout and tax recapture from CT-1040ES. An explicit Connecticut AGI is required; at high incomes, leaving out those additions would materially understate state tax.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $68,900 before credits. For this benchmark only, state AGI is explicitly assumed equal to state taxable income. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Connecticut retirement-tax details

DelawareRead state analysis

Delaware

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Median home $371,600Monthly gross rent $1,530HO-3 premium, 2023 $1,196

Delaware’s regular individual schedule reaches 6.6% above $60,000 of taxable income. The state-only number excludes Wilmington earned-income tax and does not measure gross receipts tax incurred by a business.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $64,984 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Delaware retirement-tax details

FloridaRead state analysis

Florida

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Median home $396,900Monthly gross rent $1,812HO-3 premium, 2023 $2,779

Florida’s zero 2026 wage-tax result is a real tie with other no-wage-tax states. It is not an estimate of insurance, property taxes or the cost of maintaining a corporation.

Florida DOR individual income-tax FAQ (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Florida retirement-tax details

GeorgiaRead state analysis

Georgia

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Median home $343,300Monthly gross rent $1,506HO-3 premium, 2023 $1,828

The 4.99% wage schedule is verified in Georgia’s 2026 tax update. HB1023 supplies the matching entity-rate rule, but an unrelated W-2 employee cannot reduce wage tax through a fictional PTET election.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $49,900 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Georgia DOR important tax updates, 2026 (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Georgia retirement-tax details

HawaiiRead state analysis

Hawaii

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Median home $875,900Monthly gross rent $1,942HO-3 premium, 2023 $1,549

Hawaii’s ordinary brackets distinguish single and joint returns, and the 2025 bracket expansion also applies in 2026. A million-dollar wage result does not represent Hawaii’s separate treatment of capital gains.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $90,432 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Hawaii Department of Taxation tax-year rate tables (2026; 2026-09-12)
Hawaii tax tables for years after December 31, 2024 (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Hawaii retirement-tax details

IdahoRead state analysis

Idaho

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Median home $446,400Monthly gross rent $1,384HO-3 premium, 2023 $1,135

Idaho’s verified annual page still supplies 2025 indexed zero-rate thresholds. This guide leaves the 2026 calculation unavailable rather than combining a current 5.3% headline rate with an unverified threshold.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $52,477 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Idaho Code 63-3024: 5.3% rate and statutory CPI indexing (2026; 2026-09-12)
BLS CPI-U U.S. city average: 2025 annual average 321.943 (2025; 2026-09-12)
BLS historical CPI-U: 1998 annual average 163.0 (1998; 2026-09-12)
Idaho Commission published annual tables: latest posted year 2025 (2025; 2026-09-12)
BLS archived CPI files: October 2025 data unavailable during funding lapse (2025; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Idaho retirement-tax details

IllinoisRead state analysis

Illinois

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Median home $280,700Monthly gross rent $1,322HO-3 premium, 2023 $1,480

Illinois DOR current income-tax rates (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Illinois retirement-tax details

IndianaRead state analysis

Indiana

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Median home $243,500Monthly gross rent $1,104HO-3 premium, 2023 $1,259

The Indiana number intentionally excludes county income tax. Choose an actual county and the applicable rate date before comparing take-home pay with a state that lacks a local income tax.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $29,500 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Indiana DOR rates, fees and penalties (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Indiana retirement-tax details

IowaRead state analysis

Iowa

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Median home $227,300Monthly gross rent $981HO-3 premium, 2023 $1,342

Iowa’s 2026 ordinary individual rate is 3.8%. The wage comparison excludes low-income alternative-tax rules and school-district surtax, and it does not pass a hypothetical business election credit through to salary.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $38,000 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Iowa retirement-tax details

KansasRead state analysis

Kansas

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Median home $238,700Monthly gross rent $1,079HO-3 premium, 2023 $1,733

Kansas retains different first-bracket widths for single and joint filers. At high taxable income both reach 5.58%, but a single top-rate multiplication misses the lower first bracket.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $55,625 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Kansas DOR enacted individual tax schedule (2026; 2026-09-12)
Kansas Notice 25-06: no 2026 rate reduction (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Kansas retirement-tax details

KentuckyRead state analysis

Kentucky

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Median home $226,000Monthly gross rent $998HO-3 premium, 2023 $1,525

Kentucky’s wage-only benchmark uses the new 3.5% state rate. Local occupational taxes are not included, so the correct city/county matters when moving an operating business or payroll.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $35,000 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Kentucky retirement-tax details

LouisianaRead state analysis

Louisiana

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Median home $223,200Monthly gross rent $1,064HO-3 premium, 2023 $3,027

Louisiana’s flat 3% schedule replaces the former graduated personal schedule. The benchmark starts after Louisiana deductions; multiplying 3% by gross household wages would use the wrong input.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $30,000 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Louisiana retirement-tax details

MaineRead state analysis

Maine

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Median home $341,900Monthly gross rent $1,210HO-3 premium, 2023 $1,150

Maine’s 2026 surcharge starts above $1 million for single filers and $1.5 million for joint filers. Exactly $1 million therefore triggers no surcharge in either supported status; the $2 million examples do.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $70,460 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Maine retirement-tax details

MarylandRead state analysis

Maryland

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Median home $436,300Monthly gross rent $1,721HO-3 premium, 2023 $1,578

Maryland’s state schedule now reaches 6.5% above $1 million single or $1.2 million joint. The calculator excludes county/Baltimore City tax, which makes its state-only number unsuitable as a complete Maryland bill.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $57,323 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Maryland Tax-General section 10-105 (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Maryland retirement-tax details

MassachusettsRead state analysis

Massachusetts

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Median home $607,400Monthly gross rent $1,848HO-3 premium, 2023 $2,134

The Massachusetts 4% surcharge begins above $1,107,750 in 2026, not exactly $1 million. At a taxable-income base of $1 million, the regular wage benchmark remains $50,000 before credits.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $50,000 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Massachusetts DOR current tax rates (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Massachusetts retirement-tax details

MichiganRead state analysis

Michigan

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Median home $254,200Monthly gross rent $1,168HO-3 premium, 2023 $1,110

Michigan’s state-only calculation excludes city income taxes. A Detroit residence or workplace needs a named local computation, not an invented average Michigan local-tax percentage.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $42,500 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Michigan retirement-tax details

MinnesotaRead state analysis

Minnesota

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Median home $344,600Monthly gross rent $1,291HO-3 premium, 2023 $1,988

Minnesota’s 2026 brackets reach 9.85% at $203,150 single and $337,930 joint. A capital-gain scenario requires separate net-investment-income tax and alternative-minimum analysis.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $89,004 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Minnesota DOR 2026 rates and brackets (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Minnesota retirement-tax details

MississippiRead state analysis

Mississippi

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Median home $186,500Monthly gross rent $990HO-3 premium, 2023 $2,029

The Mississippi wage benchmark assumes one earner. A joint return with two earned incomes can allocate the $10,000 zero-rate amount differently; this module does not invent a second exemption for a nonworking spouse.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $39,600 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Mississippi retirement-tax details

MissouriRead state analysis

Missouri

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Median home $254,400Monthly gross rent $1,067HO-3 premium, 2023 $1,589

Missouri’s 2026 MO-1040ES chart supplies the indexed brackets, reaching 4.7% above $9,436. Joint returns allocate income between spouses; this comparison uses one earned income and excludes local earnings taxes.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $46,820 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Missouri retirement-tax details

MontanaRead state analysis

Montana

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Median home $425,400Monthly gross rent $1,177HO-3 premium, 2023 $1,768

Montana’s 2026 wage brackets use $47,500 single and $95,000 joint as the breakpoint. Its separate lower long-term capital-gain rates mean a business sale cannot use the wage table unchanged.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $55,598 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Montana DOR HB 337 income-tax changes (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Montana retirement-tax details

NebraskaRead state analysis

Nebraska

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Median home $263,100Monthly gross rent $1,102HO-3 premium, 2023 $2,142

Nebraska’s verified 2026 estimated-tax worksheet supplies the indexed brackets used here. Both upper brackets use 4.55%, but the lower tiers still reduce the effective rate below a simple 4.55% multiplication.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $44,898 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Nebraska retirement-tax details

NevadaRead state analysis

Nevada

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Median home $455,500Monthly gross rent $1,709HO-3 premium, 2023 $1,013

Nevada ties the other zero-state-wage-tax jurisdictions. Its business payroll and gross-revenue taxes belong in an operating-company model and are excluded from the personal-income ranking.

Nevada Department of Taxation tax notes (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Nevada retirement-tax details

New HampshireRead state analysis

New Hampshire

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Median home $458,800Monthly gross rent $1,558HO-3 premium, 2023 $1,300

New Hampshire repealed its interest-and-dividends tax for periods after 2024, but that personal-tax change did not repeal the business taxes. A million dollars of wages and a million dollars of business income are separate scenarios.

Read the New Hampshire retirement-tax details

New JerseyRead state analysis

New Jersey

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Median home $496,000Monthly gross rent $1,800HO-3 premium, 2023 $1,551

New Jersey’s resident individual rate reaches 10.75% above $1 million, while income at exactly $1 million is still in the 8.97% bracket. The tax is progressive, so neither rate applies to every dollar.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $72,658 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the New Jersey retirement-tax details

New MexicoRead state analysis

New Mexico

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Median home $279,900Monthly gross rent $1,117HO-3 premium, 2023 $1,490

New Mexico’s 2025-and-later schedule remains current in the Taxation and Revenue Department’s January 2026 analysis. Joint filers reach the 5.9% bracket above $315,000; its wage schedule is separate from the PTE base and gross-receipts tax.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $55,039 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

New Mexico TRD 2025 tax expenditure report: 2025-and-later income schedule (2026; 2026-09-12)
New Mexico TRD January 2026 SB60 analysis: current-law comparison table (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the New Mexico retirement-tax details

New YorkRead state analysis

New York

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Median home $449,800Monthly gross rent $1,634HO-3 premium, 2023 $1,801

New York’s 2026 estimate worksheets provide both reduced brackets and benefit recapture. The calculation requires an explicit NYAGI assumption; New York City has a separate named resident-tax component, and Yonkers remains excluded.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $68,500 before credits. For this benchmark only, state AGI is explicitly assumed equal to state taxable income. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the New York retirement-tax details

North CarolinaRead state analysis

North Carolina

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Median home $333,000Monthly gross rent $1,338HO-3 premium, 2023 $1,852

North Carolina withholding tables include a percentage that differs from its 3.99% return rate. The comparison uses the income-tax rate, not the withholding cushion, on North Carolina taxable income.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $39,900 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the North Carolina retirement-tax details

North DakotaRead state analysis

North Dakota

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Median home $266,100Monthly gross rent $980HO-3 premium, 2023 $1,414

North Dakota’s 2026 ND-1ES contains annual brackets distinct from wage withholding. The joint zero-rate band extends through $82,800 of state taxable income, followed by 1.95% and 2.5% brackets.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $21,709 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the North Dakota retirement-tax details

OhioRead state analysis

Ohio

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Median home $239,800Monthly gross rent $1,090HO-3 premium, 2023 $1,116

Ohio does not apply 2.75% to every taxable wage dollar. The 2026 statute sets tax at zero through $26,050 and then $332 plus 2.75% of the excess; the benchmark implements that formula.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $27,116 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Ohio retirement-tax details

OklahomaRead state analysis

Oklahoma

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Median home $222,100Monthly gross rent $1,044HO-3 premium, 2023 $2,486

Oklahoma’s new zero-rate and reduced-rate bands differ for single and joint returns. Future rate triggers are not assumed; the module applies only the enacted 2026 schedule.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $44,571 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Oklahoma retirement-tax details

OregonRead state analysis

Oregon

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Median home $497,500Monthly gross rent $1,597HO-3 premium, 2023 $1,003

Oregon’s 2026 state wage schedule excludes Metro, Multnomah County and Portland taxes. A Portland-area comparison needs those named jurisdictions and their own bases rather than a statewide local-tax average.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $95,487 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Oregon retirement-tax details

PennsylvaniaRead state analysis

Pennsylvania

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Median home $277,600Monthly gross rent $1,252HO-3 premium, 2023 $1,217

Pennsylvania’s 3.07% compensation-class calculation excludes local earned-income taxes. Losses in an unrelated income class should not be assumed to offset wages or a gain in the benchmark.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $30,700 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Pennsylvania retirement-tax details

Rhode IslandRead state analysis

Rhode Island

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Median home $455,700Monthly gross rent $1,418HO-3 premium, 2023 $2,396

Rhode Island’s 2026 regular brackets are the same for the supported filing statuses, but deductions and exemptions are not. At high modified AGI, their phaseout must already be reflected in the supplied taxable base.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $56,768 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Rhode Island Division of Taxation 2026 inflation adjustments (2026; 2026-09-12)
Rhode Island DOR July 2026 enacted-law summary: surtax starts in 2027 (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Rhode Island retirement-tax details

South CarolinaRead state analysis

South Carolina

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Median home $299,500Monthly gross rent $1,272HO-3 premium, 2023 $1,753

South Carolina now starts the individual calculation with federal AGI and a new state deduction. The 1.99%/$30,000 breakpoint and 5.21% upper rate cannot be applied to old federal-taxable-income assumptions without rebuilding the base.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $51,134 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the South Carolina retirement-tax details

South DakotaRead state analysis

South Dakota

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Median home $289,600Monthly gross rent $999HO-3 premium, 2023 $1,614

South Dakota is a zero-state-wage-tax tie in 2026. Sales and use tax on a household’s spending or a business’s services belongs in another comparison with an explicit spending base.

South Dakota DOR sales and use tax guide (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the South Dakota retirement-tax details

TennesseeRead state analysis

Tennessee

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Median home $332,600Monthly gross rent $1,284HO-3 premium, 2023 $1,649

Tennessee has no personal wage tax; the Hall tax on certain investment income was repealed from 2021. A business-profit scenario remains different because operating-entity taxes can apply.

Tennessee DOR Hall income tax repeal (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Tennessee retirement-tax details

TexasRead state analysis

Texas

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Median home $313,200Monthly gross rent $1,475HO-3 premium, 2023 $2,864

Texas’s individual net-income-tax prohibition supports a zero wage-tax benchmark. That personal result should remain separate from franchise tax on an operating entity or property tax on an owner’s home.

Read the Texas retirement-tax details

UtahRead state analysis

Utah

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Median home $545,200Monthly gross rent $1,593HO-3 premium, 2023 $1,107

Utah’s regular-tax result is before its taxpayer tax credit. A 4.45% multiplication is therefore a schedule comparison, not a claim that every household’s effective rate is 4.45%.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $44,500 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Utah retirement-tax details

VermontRead state analysis

Vermont

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Median home $352,800Monthly gross rent $1,319HO-3 premium, 2023 $1,215

Vermont’s Joint Fiscal Office publishes the 2026 annual regular brackets used here. The separate minimum of 3% of federal AGI above $150,000 remains outside this regular-tax comparison, so the result is not a completed return liability.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $79,111 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Vermont Joint Fiscal Office 2026 Fiscal Facts: personal income-tax brackets (2026; 2026-09-12)
Vermont 32 VSA 5822: federal-AGI minimum tax (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Vermont retirement-tax details

VirginiaRead state analysis

Virginia

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Median home $403,500Monthly gross rent $1,646HO-3 premium, 2023 $1,537

Virginia’s upper regular rate is 5.75% above $17,000 of taxable income. The guide assumes one earner, so it does not claim a spouse tax adjustment that requires qualifying income earned by both spouses.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $57,243 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Virginia retirement-tax details

WashingtonRead state analysis

Washington

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Median home $602,200Monthly gross rent $1,824HO-3 premium, 2023 $1,232

Washington has no 2026 wage income tax; its newly enacted individual income tax begins in 2028. Existing capital-gains excise tax remains separate, with 7% on the first $1 million of taxable Washington gains and 9.9% above.

Washington DOR individual income-tax FAQs (2026; 2026-09-12)
Washington Governor: SB6346 income tax signed March 30, 2026; starts January 2028 (2026; 2026-09-12)
Washington DOR tiered capital-gains tax (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Washington retirement-tax details

West VirginiaRead state analysis

West Virginia

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Median home $170,800Monthly gross rent $883HO-3 premium, 2023 $1,179

West Virginia cut rates again for 2026, bringing the upper rate to 4.58%. The module uses the retroactive 2026 schedule and not the superseded 4.82% top rate.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $45,003 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the West Virginia retirement-tax details

WisconsinRead state analysis

Wisconsin

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Median home $294,700Monthly gross rent $1,142HO-3 premium, 2023 $923

Wisconsin’s 2026 estimate instructions provide the indexed regular brackets used here. Capital-gain exclusions and alternative-minimum tax are separate, so a business-sale outcome cannot be read directly from this wage table.

At exactly $1 million of state taxable wage income, the one-earner married-filing-jointly regular state-tax benchmark is $65,270 before credits. This is not $1 million of gross household income, and local, entity and federal taxes are excluded.

Read the Wisconsin retirement-tax details

WyomingRead state analysis

Wyoming

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Median home $339,500Monthly gross rent $998HO-3 premium, 2023 $1,853

Wyoming is tied at zero in the 2026 personal wage-tax comparison. A Wyoming entity registration does not establish that its owner changed domicile or that income earned elsewhere loses its original state source.

State of Wyoming tax overview (2026; 2026-09-12)
Census ACS housing, rent and property-tax data
NAIC 2023 homeowner premium table

Read the Wyoming retirement-tax details

Taxstra methodologyScoring factors, weights, research profiles and limitations.

How Taxstra grades each state out of 10

This guide ranks one financial result, such as a tax bill or deduction. Lifestyle does not change that number. Other category tiles provide extra context and are labeled when they do not affect the overall score.

What does a score out of 10 mean?

For financial categories, 10 is the strongest result in the comparison and 1 is the weakest. Lower costs generally score better; higher pay scores better. A 7.9 is a comparison tool, not a promise about your finances.

Why can scores and ranks look different?

Cards show one decimal place, while rankings use two. Two states can both display 7.9 and still have slightly different ranks. States with the same ranking value share a rank.

Which WalletHub ranking do we use?

We use WalletHub’s Quality of Life category, not its overall ranking. For example, Illinois is fifth for Quality of Life and eighteenth overall in the cited study. Those are two different measures.

What if information is missing?

We leave it missing instead of guessing. If a required factor is unavailable, we label the score provisional and do not give it an overall rank.

Technical formulas and source definitions

Financial categories: actual measurement spread: The most favorable observed value receives 10 and the least favorable receives 1. Intermediate grades are scaled linearly between them: 1 + 9 × the favorable share of the observed range. Lower costs score higher; higher pay scores higher. If every observation is identical, each receives 5.5. These relative grades do not have a universal pass/fail cutoff. Extreme observations can widen the range and compress other grades. We do not narrow a genuine gap just to produce a tighter leaderboard; a change to a source population must have a documented measurement reason. The STR grade is a regional spending-cost screen. Hotel employment is excluded from its score because hotel jobs do not measure residential STR demand; actual occupancy and booking revenue require local property research.
Malpractice and rental taxes: defined samples: The physician index weights CMS county malpractice-cost observations by their malpractice RVUs within each state. It uses the underlying 2026 update, based on 2023 premiums and RVUs, before Medicare payment adjustments. State-specific specialty mix, missing insurer types and CMS imputation limit its use as a quote comparison. Apartment-tax comparisons hold building and fixture values constant and average the study’s named urban and rural municipalities equally. Including both reduces dependence on one city; it still does not represent all localities. They are neither statewide tax rates nor single-family STR bills.
Quality of life: the source category, not the overall WalletHub rank: We use the quality-of-life category of WalletHub’s 2026 state study, published August 10, 2026. Taxstra converts its rank to a grade using 1 + 9 × (50 − rank) / 49. The publisher’s category includes amenities, mobility, leisure, weather and environmental conditions. WalletHub’s overall ranking also includes affordability, economy, education and health, and safety. We use its narrower quality-of-life category as an amenities and daily-life input; our financial factors already measure costs separately. For example, Illinois is #5 in that category and #18 overall in WalletHub. Taxstra’s own guide ranking is a third, separately calculated result. Differences in these rank-based grades are not measured differences in happiness.
Overall grade and rank: Multiply each unrounded component grade by its published weight, add the results, then display one decimal place. Round the composite to two decimals for ranking and retain genuine ties at that precision. Cards display one decimal for readability; two cards displaying 7.9 can therefore have different positions. The table tooltip and downloadable dataset include the ranking value. For example, financial 6.0 and quality of life 9.0 produce 6.6 at 80% financial / 20% quality-of-life weights. Direct tax and deduction comparisons rank their displayed dollar outcomes and show a separate normalized category grade.
Incomplete evidence: Unavailable category data receives no grade. When a weighted component is missing, the remaining components are reweighted and the card labels the result provisional, shows evidence coverage and excludes it from the overall rank. The presence of a numeric provisional grade is not evidence that the missing category was measured.
What a grade does not claim: These are screening grades, not completed all-factor tax or legal rankings. The named tax benchmarks and CMS malpractice-cost index are included only where the displayed weights say so. Full-return taxes, individual insurance quotes and legal-policy judgments remain separate. A high amenities grade does not mean that everyone prefers the state. Family ties, local neighborhoods, climate preferences and a particular job can outweigh statewide observations.

For investment guides, livability describes market context; it does not forecast rent growth or returns and does not assume that the investor lives in the property’s state. In guides about tax bills, the tax calculations stay separate from lifestyle grades.

Research examples and calculation assumptions

Taxstra's research profiles

A useful comparison holds the household and property constant. These are the exact starting profiles for the tax research; a scenario is not a completed tax estimate unless its result is explicitly shown.

Physician employment: $500,000 in wages, one earner, no dependents, no elective retirement contributions. Married filing jointly and single results are separate. The score’s separate tax sensitivity uses $500,000 of state taxable wage income with state AGI equal to that base; it is not a gross-to-taxable return calculation. Compensation observations use the BLS occupation specified beside the result and exclude self-employment.
Contracting and business ownership: $500,000 of profit before owner compensation. An S-corp example tests a $250,000 owner wage; that is a sensitivity assumption, not a reasonable-compensation opinion. The separate employee-payroll example is five employees at $100,000 each. Employee wages already included in operating expenses are never deducted twice.
Retirement: Both spouses are 67, married filing jointly, receiving $120,000 from traditional retirement accounts, $60,000 in private pensions, $60,000 in Social Security, $30,000 in ordinary investment income and $30,000 in long-term capital gains. Each spouse receives half. Total cash income is $300,000; taxable income depends on the income category and applicable rules. Full-year residents. Qualified traditional distributions; employer-funded defined-benefit pension; 401(k) entirely employee elective deferrals with no employer contributions; IRA entirely self-funded with no exempt pension rollover; Pennsylvania-eligible retirement distributions after retirement. Exclusions are applied to qualifying plan income first where several income categories are eligible. No federal or state tax bill is estimated.
Property acquisition: A debt-free $1 million purchase, with $200,000 allocated to land. The long-term rental example assumes $90,000 of rent and $30,000 of expenses before property tax, insurance and depreciation. The STR example assumes $150,000 of bookings and $75,000 of expenses on the same basis. These are research starting profiles, not market forecasts. The standardized scored apartment example is different: $600,000 land and building plus $30,000 fixtures, with the same values across named municipalities. The STR worked example uses a separately labeled fixed property scenario. It does not change the statewide ranking or represent forecast bookings.
Depreciation: A sensitivity considers an additional $100,000 deduction that the taxpayer can currently use. An addback can defer a state benefit even when federal expensing is available. A current deduction, a future recovery and a permanent tax reduction are different results.
State and local scope: Property location and owner residence are separate inputs. There is no assumed “average” local income tax. A combined state/local result needs a named locality and its resident or nonresident rules. Figures explicitly labeled state-only exclude local tax.

How to reproduce a comparison

Choose the named measure and its source year.
Apply the formula displayed beside the map to the source observation for each state.
Round money to whole dollars, ratios to two decimal places and grades to one decimal place. Rank in the direction stated by the measure: the tax-penalty guide places the largest burden first, while its tax-cost grade still rewards a lower bill. Changing display order does not change a state’s rank.
Give equal ranking values the same competition rank (composites use two decimals; cards show one). After a tie, skip the occupied positions.
Leave suppressed or unavailable observations unranked. Retain the state in the table and describe the gap.

A price-adjusted wage, a homeowner tax bill and a lodging-employment concentration answer different questions. The balanced view explicitly combines the guide’s named financial factors with livability at the displayed weights. Other categories provide context. A favorable legal policy is not treated as a measured dollar saving. Material modeling assumptions require review before a full financial ranking is released.

The financial profiles are a $500,000 W-2 household, a business with $500,000 profit before owner compensation, a five-person $500,000 payroll, and a married age-67 household with $300,000 of mixed retirement and investment income. Investor examples assume the purchase location is separate from the owner’s residence.

These scenarios define the research questions. Unless a completed calculation is explicitly shown, a profile is not an estimated return. Tax sensitivities use separately supplied state-taxable wage or ordinary-business bases, exclude local tax and do not replace full-return calculations. We do not calculate with unverified secondary-source schedules.

Published survey estimates have sampling error. We preserve available Census margins of error and BLS relative errors in the source data. Small apparent differences should not be treated as certainty. A comprehensive state decision still requires the actual locality, household, property, employer and coverage terms.

Sources and measurement datesOriginal datasets, primary authority, verification dates and downloadable research.

Download the published 50-state dataset (CSV) · Dataset definitions and coverage

Economic observations were retrieved September 12, 2026. Measurement years differ because the agencies publish on different schedules. Existing retirement rules retain their August 4, 2026 review date; existing PTET and depreciation research retain August 30, 2026. Unresolved entries remain identified.

Alabama DOR individual tax ratesSource year / applicable rules: 2026 · Verified 2026-09-12
Alaska government tax factsSource year / applicable rules: 2026 · Verified 2026-09-12
Arizona DOR individual withholding and tax rateSource year / applicable rules: 2026 · Verified 2026-09-12
Arkansas DFA 2026 special-session SB1 fiscal impactSource year / applicable rules: 2026 · Verified 2026-09-12
Arkansas SB1, Act 2 of the 2026 special sessionSource year / applicable rules: 2026 · Verified 2026-09-12
California FTB September 3, 2026 indexing memorandum, Attachment 2 (CalTax-hosted copy)Source year / applicable rules: 2026 · Verified 2026-09-12
California FTB 2025 Publication 1067: individual-return 1% tax on excess over $1 millionSource year / applicable rules: 2026 · Verified 2026-09-12
Colorado 2026 DR 0104EP estimate worksheetSource year / applicable rules: 2026 · Verified 2026-09-12
Connecticut 2026 CT-1040ES: initial tax, 2% phaseout and recapture tablesSource year / applicable rules: 2026 · Verified 2026-09-12
Delaware DOR employer guide, income computation tableSource year / applicable rules: 2026 · Verified 2026-09-12
Florida DOR individual income-tax FAQSource year / applicable rules: 2026 · Verified 2026-09-12
Georgia DOR important tax updates, 2026Source year / applicable rules: 2026 · Verified 2026-09-12
Hawaii Department of Taxation tax-year rate tablesSource year / applicable rules: 2026 · Verified 2026-09-12
Hawaii tax tables for years after December 31, 2024Source year / applicable rules: 2026 · Verified 2026-09-12
Idaho Code 63-3024: 5.3% rate and statutory CPI indexingSource year / applicable rules: 2026 · Verified 2026-09-12
BLS CPI-U U.S. city average: 2025 annual average 321.943Source year / applicable rules: 2025 · Verified 2026-09-12
BLS historical CPI-U: 1998 annual average 163.0Source year / applicable rules: 1998 · Verified 2026-09-12
Idaho Commission published annual tables: latest posted year 2025Source year / applicable rules: 2025 · Verified 2026-09-12
BLS archived CPI files: October 2025 data unavailable during funding lapseSource year / applicable rules: 2025 · Verified 2026-09-12
Illinois DOR current income-tax ratesSource year / applicable rules: 2026 · Verified 2026-09-12
Indiana DOR rates, fees and penaltiesSource year / applicable rules: 2026 · Verified 2026-09-12
Iowa DOR 2026 income-tax rate announcementSource year / applicable rules: 2026 · Verified 2026-09-12
Kansas DOR enacted individual tax scheduleSource year / applicable rules: 2026 · Verified 2026-09-12
Kansas Notice 25-06: no 2026 rate reductionSource year / applicable rules: 2026 · Verified 2026-09-12
Kentucky DOR software developer tax-year updatesSource year / applicable rules: 2026 · Verified 2026-09-12
Louisiana DOR individual income-tax reform ratesSource year / applicable rules: 2026 · Verified 2026-09-12
Maine Revenue Services revised 2026 individual rate schedulesSource year / applicable rules: 2026 · Verified 2026-09-12
Maryland Tax-General section 10-105Source year / applicable rules: 2026 · Verified 2026-09-12
Massachusetts DOR current tax ratesSource year / applicable rules: 2026 · Verified 2026-09-12
Michigan Treasury 2026 individual rate determinationSource year / applicable rules: 2026 · Verified 2026-09-12
Minnesota DOR 2026 rates and bracketsSource year / applicable rules: 2026 · Verified 2026-09-12
Mississippi DOR general information, 2026 income taxSource year / applicable rules: 2026 · Verified 2026-09-12
Missouri DOR 2026 MO-1040ES tax rate chartSource year / applicable rules: 2026 · Verified 2026-09-12
Montana DOR HB 337 income-tax changesSource year / applicable rules: 2026 · Verified 2026-09-12
Nebraska DOR 2026 Form 1040N-ES worksheetSource year / applicable rules: 2026 · Verified 2026-09-12
Nevada Department of Taxation tax notesSource year / applicable rules: 2026 · Verified 2026-09-12
New Hampshire DRA interest and dividends tax repealSource year / applicable rules: 2026 · Verified 2026-09-12
New Jersey Treasury resident tax rate schedules, 2020 and afterSource year / applicable rules: 2026 · Verified 2026-09-12
New Mexico TRD 2025 tax expenditure report: 2025-and-later income scheduleSource year / applicable rules: 2026 · Verified 2026-09-12
New Mexico TRD January 2026 SB60 analysis: current-law comparison tableSource year / applicable rules: 2026 · Verified 2026-09-12
New York 2026 IT-2105-I estimate schedules and benefit-recapture worksheetsSource year / applicable rules: 2026 · Verified 2026-09-12
North Carolina DOR individual rate schedulesSource year / applicable rules: 2026 · Verified 2026-09-12
North Dakota 2026 ND-1ES annual tax rate schedulesSource year / applicable rules: 2026 · Verified 2026-09-12
Ohio Revised Code chapter 5747, 2026 individual taxSource year / applicable rules: 2026 · Verified 2026-09-12
Oklahoma Tax Commission 2025 legislative update, effective 2026Source year / applicable rules: 2026 · Verified 2026-09-12
Oregon Legislative Revenue Office 2026 personal tax scheduleSource year / applicable rules: 2026 · Verified 2026-09-12
Pennsylvania DOR 2026 REV-413 individual estimated taxSource year / applicable rules: 2026 · Verified 2026-09-12
Rhode Island Division of Taxation 2026 inflation adjustmentsSource year / applicable rules: 2026 · Verified 2026-09-12
Rhode Island DOR July 2026 enacted-law summary: surtax starts in 2027Source year / applicable rules: 2026 · Verified 2026-09-12
South Carolina DOR H.4216 2026 income-tax reformSource year / applicable rules: 2026 · Verified 2026-09-12
South Dakota DOR sales and use tax guideSource year / applicable rules: 2026 · Verified 2026-09-12
Tennessee DOR Hall income tax repealSource year / applicable rules: 2026 · Verified 2026-09-12
Texas Constitution article VIII section 24-aSource year / applicable rules: 2026 · Verified 2026-09-12
Utah Tax Commission 2026 legislative summarySource year / applicable rules: 2026 · Verified 2026-09-12
Vermont Joint Fiscal Office 2026 Fiscal Facts: personal income-tax bracketsSource year / applicable rules: 2026 · Verified 2026-09-12
Vermont 32 VSA 5822: federal-AGI minimum taxSource year / applicable rules: 2026 · Verified 2026-09-12
Virginia Tax individual income-tax computationSource year / applicable rules: 2026 · Verified 2026-09-12
Washington DOR individual income-tax FAQsSource year / applicable rules: 2026 · Verified 2026-09-12
Washington Governor: SB6346 income tax signed March 30, 2026; starts January 2028Source year / applicable rules: 2026 · Verified 2026-09-12
West Virginia Tax Division 2026 personal income-tax reductionSource year / applicable rules: 2026 · Verified 2026-09-12
Wisconsin DOR 2026 Form 1-ES instructionsSource year / applicable rules: 2026 · Verified 2026-09-12
State of Wyoming tax overviewSource year / applicable rules: 2026 · Verified 2026-09-12
Washington DOR tiered capital-gains taxSource year / applicable rules: 2026 · Verified 2026-09-12

The Census property-tax figure is a median dollar bill on owner-occupied homes, not a tax rate on rentals. BLS physician wages exclude self-employment. NAIC premiums describe owner-occupied HO-3 policies. CMS healthcare spending includes several payers and all ages. BLS accommodation employment includes hotels and other lodging; it is not STR revenue.

State-specific primary-authority links appear with each state. A source listed for one tax category does not verify a different category.

Common questions

Are the lowest-tax states tied?

States with the same displayed whole-dollar state wage tax receive the same competition rank. Alphabetical order within a tie is display order, not an extra tax advantage.

Is the result tax on $1 million of gross income?

No. It is tax on a $1 million state taxable wage base after state adjustments and deductions. Gross-income modeling remains separate.

Does $1 million of salary receive the same treatment as $1 million of gains?

Not necessarily. The income type can change the calculation. The guide treats wages, business income and investment gains as separate scenarios and leaves unreconciled results unavailable.

Should lifestyle affect a ranking called lowest taxes?

The tax ranking should remain factual. Lifestyle belongs alongside it when deciding where to live. Use the separate livability measure to evaluate a move without relabeling amenities as lower taxes.

Is a zero wage-income-tax rate the same as zero household tax?

No. A wage-tax figure does not describe property taxes, sales taxes, business obligations or every kind of investment income. Compare each applicable category separately.

What does Taxstra need to model $1 million of income?

Specify filing status, the split between wages, business and investments, residence and work locations, deductions and relevant entity facts. The same headline income can describe materially different households.

Why can the WalletHub rank differ from the rank on this card?

The card identifies WalletHub’s Quality of Life category rank. The linked study also has a separate Overall Rank column that incorporates affordability, economy, education and health, and safety. Illinois is #5 in Quality of Life but #18 overall in the 2026 WalletHub study. Taxstra’s headline rank combines the named financial factors with that quality-of-life category using our published weights; it is not WalletHub’s overall ranking.

Can readers customize the published ranking?

No. Each guide uses one fixed methodology and the same assumptions for every state. State search, map selection, shared links and embedded cards all use that published ranking. Separate financial examples explain the assumptions without changing the leaderboard.

How does Taxstra include livability in the ranking?

Composite guides combine their named financial factors with WalletHub’s Quality of Life category at fixed, guide-specific weights: 80% financial and 20% quality of life for physician and retirement composites; 90% financial and 10% quality of life for business and property composites. Direct tax, PTET and depreciation comparisons do not include quality of life in their ranking. Everyone sees the same ranking; choosing a state changes the displayed card, not the methodology. The score is a comparison tool, not an estimate of happiness or a completed tax return.

What does the livability measure include?

We use WalletHub’s 2026 quality-of-life category, which considers amenities, mobility, environmental conditions and leisure. Its methodology is linked in the sources. This category does not fully capture family ties, personal climate preferences, a particular school district or an individual neighborhood.

Does a score of 8.0 mean a state is 80% better?

No. The 1–10 grades describe relative results within the comparison. A score of 8.0 is neither a percentage tax saving nor a probability that you will enjoy living there. Review the underlying measures, fixed weights and limitations before making a shortlist.

Why can two states share a rank?

Taxstra ranks composite scores rounded to two decimals while cards display one decimal. Equal ranking values share the same competition rank. Direct dollar comparisons rank whole-dollar outcomes. Missing observations remain unranked when the selected calculation needs them; they are not replaced with zero.

Continue your research

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The published 50-state ranking

Pick a state. See how it fits.

Why Illinois scores this way

Illinois

Tax on $250K taxable wages

Tax on $500K taxable wages

Tax on $1M taxable wages

Tax on $2M taxable wages

Good fit for

Less suited to

Cite the state. Include the method.

Published income-tax scenarios

New York City adds a local income tax

Exactly $1 million does not cross every million-dollar threshold

Washington illustrates why income type matters

A business sale needs its own model

How Taxstra grades each state out of 10

What does a score out of 10 mean?

Why can scores and ranks look different?

Which WalletHub ranking do we use?

What if information is missing?

Taxstra's research profiles

How to reproduce a comparison

Common questions

Continue your research

States With the Biggest Tax Penalty for High Earners

Where Bonus Depreciation Is Most Valuable

State-by-State PTET and SALT Workaround Guide

Make the comparison yours.