These states have the highest, and lowest, tax rates in 2026 - see where you rank

Taxes feel extra heavy during tax season in 2026, which is still going on for another month. People living in Oregon may feel it the most because it has the highest overall tax rate. The report comes from FinanceBuzz, which compared all 50 states using income and tax data. The study uses something called “effective tax rate,” which means how much of your total income goes to taxes. In simple terms: total tax ÷ income = effective tax rate.

Why some states pay more tax

States with higher tax rates usually also have higher incomes. States with lower taxes usually have no income tax and lower incomes.

Highest tax states in 2026

Oregon ranks No.1 with a 24.4% total tax rate. People there earn about $65,249 but pay around $15,925 in taxes. Massachusetts is No.2 with a 23.5% tax rate. High income ($78,811) pushes people into higher tax brackets there. Oregon also has very high state taxes alone at 7.9%. Hawaii is next in state tax rate at 5.1%, much lower than Oregon, as stated by USA Today.

Full list: top 10 highest tax states

• Oregon – 24.4%
• Massachusetts – 23.5%
• Maryland – 22.4%
• New York – 22.1%
• New Jersey – 21.5%
• Minnesota – 21.4%
• Virginia – 21.4%
• Illinois – 21.3%
• Hawaii – 21.2%
• Colorado – 21.16%

Lowest tax states in 2026

Florida has the lowest tax rate at 15.7%. People there earn about $54,375 and pay $8,557 in taxes. Florida has no state income tax, which helps a lot. Nevada is No.2 and also has no income tax. For married couples, Tennessee is the lowest at 15.7%, as noted by USA Today.

Full list: top 10 lowest tax states

• Florida – 15.7%
• Nevada – 15.77%
• Tennessee – 15.8%
• South Dakota – 15.82%
• Wyoming – 15.9%
• Texas – 16%
• North Dakota – 16.1%
• Alaska – 16.9%
• New Hampshire – 17.3%
• Louisiana – 17.9%

Tax changes & politics

Donald Trump campaigned on tax cuts. Because of this, many states started “tax competition” to lower taxes. Tax Foundation says 8 states cut income tax in 2026. Ohio introduced a flat tax system. Now 14 states use flat taxes to simplify things, as per the report by USA Today. Experts say flat taxes make it easier for people to understand what they owe.

How this data was calculated

The report uses U.S. Census income data. It also uses 2025 tax rules to estimate what people will file in 2026. It looks at both state and federal taxes together. High tax is equal to usually high income plus high state tax. Low tax is equal to no income tax states. Your tax burden depends on where you live and how much you earn.

FAQs

Q1. Which US state has the highest tax rate in 2026?

Oregon has the highest overall tax rate in 2026, with people paying about 24.4% of their income in taxes.

Q2. Which US states have the lowest taxes in 2026?

Florida and Nevada have the lowest taxes because they do not charge state income tax.