Progressive Tax States
Last Updated: January 2026
Twenty-six states (plus the District of Columbia) use a progressive (graduated) income tax system with multiple tax brackets. Tax rates increase as income rises through each bracket.
Progressive Tax States Summary
| State | Top Rate | Brackets | Notes |
|---|---|---|---|
| Alabama | 5.00% | 3 | Plus local occupational taxes in some areas |
| Arkansas | 3.9% | 3 | Top rate reduced from 4.4% (2025) |
| California | 14.63% | 10 | Highest state income tax; withholding rate includes Mental Health Services Tax |
| Connecticut | 6.99% | 7 | Plus 3% surcharge on certain income |
| Delaware | 6.95% | 9 | HB 13 added $125k & $250k brackets (eff. 2026); no local income taxes |
| District of Columbia | 10.75% | 7 | Applies to D.C. residents only |
| Hawaii | 11.00% | 12 | Most brackets of any state |
| Kansas | 5.70% | 3 | |
| Maine | 7.15% | 3 | |
| Maryland | 6.50% | 8 | Plus mandatory local taxes (2.25%-3.30%) |
| Minnesota | 9.85% | 4 | |
| Missouri | 4.7% | 5 | 2026 withholding rate (MO Form 4282) |
| Montana | 5.65% | 2 | Top rate reduced from 5.9% (2025) |
| Nebraska | 4.55% | 3 | Top rate reduced from 5.01% (2025) |
| New Jersey | 10.75% | 7 | |
| New Mexico | 5.90% | 5 | |
| New York | 10.90% | 9 | Plus NYC tax for city residents |
| North Dakota | 2.50% | 2 | Lowest top rate among progressive states |
| Oklahoma | 4.50% | 3 | Reduced from 6 brackets in 2025 |
| Oregon | 9.90% | 4 | No sales tax |
| Rhode Island | 5.99% | 3 | |
| South Carolina | 6.40% | 6 | Top rate applies over $17,330 |
| Vermont | 8.75% | 4 | |
| Virginia | 5.75% | 4 | |
| West Virginia | 4.82% | 5 | Reduced by S.B. 2033 effective Jan 2025 |
| Wisconsin | 7.65% | 4 |
Highest Tax Rate States
These progressive tax states have the highest top marginal rates:
| Rank | State | Top Rate | Top Bracket Starts At (Single) |
|---|---|---|---|
| 1 | California | 14.63% | $1,000,000 |
| 2 | Hawaii | 11.00% | $200,000 |
| 3 | New York | 10.90% | $25,000,000 |
| 4 | New Jersey | 10.75% | $1,000,000 |
| 5 | District of Columbia | 10.75% | $1,000,000 |
| 6 | Oregon | 9.90% | $125,000 |
| 7 | Minnesota | 9.85% | $193,240 |
| 8 | Vermont | 8.75% | $229,550 |
| 9 | Wisconsin | 7.65% | $315,310 |
| 10 | Maine | 7.15% | $58,050 |
Lowest Tax Rate Progressive States
| Rank | State | Top Rate | Notes |
|---|---|---|---|
| 1 | North Dakota | 2.50% | Only 2 brackets |
| 2 | Arkansas | 3.9% | Reduced from 4.4% |
| 3 | Oklahoma | 4.50% | Simplified to 3 brackets |
| 4 | Nebraska | 4.55% | Continuing reductions |
| 5 | Missouri | 4.7% |
States with Most Brackets
| State | Brackets | Rate Range |
|---|---|---|
| Hawaii | 12 | 1.40% - 11.00% |
| California | 10 | 1.1% - 14.63% |
| New York | 9 | 4.00% - 10.90% |
| Maryland | 8 | 2.00% - 6.50% |
| Connecticut | 7 | 3.00% - 6.99% |
| Delaware | 9 | 2.20% - 6.95% |
| New Jersey | 7 | 1.40% - 10.75% |
State Details
California (10 brackets, top withholding rate 14.63%)
California has the highest state income tax withholding rates in the nation. The top bracket applies to income over $1 million. The withholding rates below are from the EDD withholding schedules and include the Mental Health Services Tax.
| Bracket | Single Filer | Withholding Rate |
|---|---|---|
| 1 | $0 - $10,756 | 1.1% |
| 2 | $10,757 - $25,499 | 2.2% |
| 3 | $25,500 - $40,245 | 4.4% |
| 4 | $40,246 - $55,866 | 6.6% |
| 5 | $55,867 - $70,606 | 8.8% |
| 6 | $70,607 - $360,659 | 10.23% |
| 7 | $360,660 - $432,787 | 11.33% |
| 8 | $432,788 - $721,314 | 12.43% |
| 9 | $721,315 - $1,000,000 | 13.53% |
| 10 | $1,000,001 and over | 14.63% |
Note: These withholding rates are higher than the income tax return rates (1%–13.3%) because the withholding calculation applies a per-exemption tax credit after computing the tax.
State W-4: Required (Form DE 4)
For complete details, see California State Income Tax Withholding.
New York (9 brackets, top rate 10.90%)
New York has progressive rates plus additional New York City taxes for residents of the five boroughs.
State W-4: Required (Form IT-2104)
Maryland (8 brackets, top rate 6.50%)
Maryland added two new top brackets for 2026 (6.25% and 6.50%). All employees also pay mandatory county/city local income tax.
| Bracket | Rate | Threshold |
|---|---|---|
| 1 | 2.00% | Up to $1,000 |
| 2 | 3.00% | $1,000 - $2,000 |
| 3 | 4.00% | $2,000 - $3,000 |
| 4 | 4.75% | $3,000 - $100,000 |
| 5 | 5.00% | $100,000 - $125,000 |
| 6 | 5.25% | $125,000 - $150,000 |
| 7 | 5.50% | $150,000 - $250,000 |
| 8 | 6.25% | $250,000 - $500,000 |
| 9 | 6.50% | Over $500,000 |
State W-4: Required (Form MW507)
Hawaii (12 brackets, top rate 11.00%)
Hawaii has the most tax brackets of any state, with 12 progressive rates.
State W-4: Required (Form HW-4)
2026 Rate Changes in Progressive States
| State | 2025 Top Rate | 2026 Top Rate | Change |
|---|---|---|---|
| Arkansas | 4.4% | 3.9% | -0.5% |
| Maryland | 5.75% | 6.50% | +0.75% (new top bracket) |
| Missouri | 4.8% | 4.7% | -0.1% |
| Montana | 5.9% | 5.65% | -0.25% |
| Nebraska | 5.01% | 4.55% | -0.46% |
| Oklahoma | 4.75% | 4.50% | -0.25% |
| West Virginia | 5.12% | 4.82% | -0.30% (S.B. 2033) |
Related Topics
- State Income Tax Withholding Guide Overview
- 2026 Changes Summary
- Flat Tax States
- No Income Tax States
- States Requiring State-Specific W-4
- Local Tax Summary