Here is what to look into.
This is a list of rules, not a tax bill. We do not add up a number here. Every rule links to the calculator that does that math.
This is general information, not tax advice. If you are unsure, check with a tax preparer or your state revenue department.
Every state is shown below, in alphabetical order, because this page carries all 51 jurisdictions in full.
You live in Alabama. You live in Alaska. You live in Arizona. You live in Arkansas. You live in California. You live in Colorado. You live in Connecticut. You live in Delaware. You live in District of Columbia. You live in Florida. You live in Georgia. You live in Hawaii. You live in Idaho. You live in Illinois. You live in Indiana. You live in Iowa. You live in Kansas. You live in Kentucky. You live in Louisiana. You live in Maine. You live in Maryland. You live in Massachusetts. You live in Michigan. You live in Minnesota. You live in Mississippi. You live in Missouri. You live in Montana. You live in Nebraska. You live in Nevada. You live in New Hampshire. You live in New Jersey. You live in New Mexico. You live in New York. You live in North Carolina. You live in North Dakota. You live in Ohio. You live in Oklahoma. You live in Oregon. You live in Pennsylvania. You live in Rhode Island. You live in South Carolina. You live in South Dakota. You live in Tennessee. You live in Texas. You live in Utah. You live in Vermont. You live in Virginia. You live in Washington. You live in West Virginia. You live in Wisconsin. You live in Wyoming. You work in Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming. You moved from Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming. You get tips. You get paid extra for working extra hours. You get a bonus or commission. Someone in your household turns 65 this year. You bought a new car with a loan. You give money to charity. You own the home you live in. You are married. You are not married.
012345678910111213141516171819202122232425262728293031323334353637383940 rules match your answers. Each one has conditions only you can check.
A rule shown here matched one of your answers. Every rule has conditions we cannot check for you, so it appearing does not mean it is yours.
These are the situations we can check. Tax has plenty of others, so an empty list here does not mean nothing applies to you.
Things people usually miss
- Washington has no state income tax, and Paid Family and Medical Leave premiums are still withheld from covered Washington wages.
- Several Alabama municipalities levy a local 'occupational tax' withheld from wages of anyone working in the city (resident or not): Birmingham 1.0%, Bessemer 1.0%, Gadsden 2.0%, plus others (e.g., Macon County). It applies to earned wages only — not dividends, rent or capital gains — and the employer withholds and remits it. source
- Only the City of Wilmington levies a local earned-income (wage) tax: a flat 1.25% on all wages, applied to BOTH Wilmington residents and non-residents who work inside city limits. No other Delaware city or county has a local income tax. source
- All 92 Indiana counties levy a local income tax (LIT), withheld by employers based on the employee's COUNTY OF RESIDENCE (not work county) as of Jan 1. 2026 county rates range roughly from 0.5% to 3.0%+. Six counties raised rates effective Jan 1, 2026. Marion (Indianapolis) ~2.02%, Hamilton ~1.1%, Allen ~1.59%. Official rates are in DOR Departmental Notice #1. source
- Iowa school districts levy a local income surtax assessed as a percentage of state income tax liability (up to 20%), not of income. About 87% of districts impose it; the income-weighted average is roughly 0.3%. Three counties (Appanoose, Pocahontas, Winnebago) also use a surtax for EMS. It is filed with the state IA 1040 return based on the district you reside in on the last day of the tax year. source
- Kentucky cities AND counties may each levy a local 'occupational license fee' (a wage tax on gross earnings) and the two can STACK. 87 of 120 counties levied it; rates run roughly 0.5%-2.5%. Louisville/Jefferson County: 2.2% for residents (1.25% Louisville Metro + 0.2% TARC + 0.75% school board); nonresidents pay 1.45% (exempt from the 0.75% school-board portion). Lexington-Fayette: 2.25%. Withheld by employers where work is performed. source
- All 23 Maryland counties plus Baltimore City levy a local 'piggyback' income tax, deducted via withholding and paid with the state return. The maximum local rate for 2026 is 3.30% (the cap rose from 3.20% for tax years after 2024). Rates range from 2.25% (Worcester, the lowest) up to 3.30%; most large counties - Howard, Montgomery, Prince George's and Baltimore City - are at 3.20%, while only Dorchester and Kent are at the 3.30% cap. Anne Arundel and Frederick counties use income-tiered rates. source
- 24 Michigan cities levy a local income tax under the Uniform City Income Tax Ordinance (Act 284 of 1964). Detroit is highest at 2.4% residents / 1.2% nonresidents; Grand Rapids and Saginaw at 1.5% / 0.75%; Highland Park at 2.0% / 1.0%; the remaining ~20 cities (e.g., Lansing, Flint, Pontiac, Battle Creek, Walker, Hamtramck) at 1.0% / 0.5%. Nonresidents are taxed only on income earned within city limits. source
- Only Kansas City and St. Louis City levy a 1% local earnings tax; Missouri law bars any other municipality from imposing a local income tax. Residents of those cities pay 1% on all earnings; non-residents pay 1% on income earned within city limits. source
- New Jersey has no general local income tax, but Newark levies a 1% payroll tax that is employer-paid (not deducted from employee paychecks). For employees, only state income tax and state payroll deductions apply. source
- New York City levies a resident income tax (2026 withholding brackets ~3.078%–3.876%) on NYC residents only. Yonkers adds a resident surcharge — 2026 resident withholding rate 1.95975% — plus a 0.50% nonresident earnings tax on income earned in Yonkers. No other NY localities levy a wage income tax. source
- Ohio has extensive municipal income taxes: most cities levy 1.8%-2.75% (Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%, Toledo 2.25%, Akron 2.5%, Dayton 2.5%), collected mostly by RITA or the CCA rather than the state. Many school districts also levy a separate school district income tax. Credits typically apply between work-city and home-city taxes. source
- Portland metro area levies multiple local personal income taxes administered by the City of Portland Revenue Division: Metro Supportive Housing Services (SHS) tax of 1% on income above $128,000 single / $205,000 joint (2026, first inflation-adjusted year), and Multnomah County Preschool for All (PFA) tax of 1.5% above $125,000 single / $200,000 joint, plus an extra 1.5% above $250,000 single / $400,000 joint. No statewide local income tax outside the Portland metro. source
- Nearly every PA municipality and school district levies a local Earned Income Tax (EIT) under Act 32, typically 1% combined in suburbs (split municipality/school district). Philadelphia imposes a separate Wage Tax (not EIT): 3.74% residents / 3.43% nonresidents through June 30, 2026, then 3.735% residents / 3.425% nonresidents effective July 1, 2026 (the first step of a five-year cut plan trending toward ~3.70%/3.39%). There is also a per-job Local Services Tax (LST), commonly $52/yr. EIT rates range roughly 0% to ~3.84% statewide; DCED maintains the official rate register. source
- West Virginia has no percentage-based local income tax, but several municipalities impose a flat per-worker 'City Service Fee' on anyone employed within city limits. Charleston charges $3.00/week ($6.00 per bi-weekly pay period); similar weekly fees apply in Huntington, Parkersburg, Morgantown ('Safe Streets' fee), Weirton and other cities. It is a fixed dollar fee, not a tax on income. source
- Alabama has not adopted the new federal break on tips.
- Alabama has not adopted the new federal break on tips.
- Alabama has not adopted the new federal break on overtime.
- Arkansas has not adopted the new federal break on tips.
- Arkansas has not adopted the new federal break on tips.
- Arkansas has not adopted the new federal break on overtime.
- Arkansas has not adopted the new federal break on overtime.
- California has not adopted the new federal break on tips.
- California has not adopted the new federal break on tips.
- California has not adopted the new federal break on overtime.
- California has not adopted the new federal break on overtime.
- Colorado has not adopted the new federal break on overtime.
- Connecticut has not adopted the new federal break on tips.
- Connecticut has not adopted the new federal break on tips.
- Connecticut has not adopted the new federal break on overtime.
- Connecticut has not adopted the new federal break on overtime.
- Delaware has not adopted the new federal break on tips.
- Delaware has not adopted the new federal break on tips.
- Delaware has not adopted the new federal break on overtime.
- Delaware has not adopted the new federal break on overtime.
- District of Columbia has not adopted the new federal break on tips.
- District of Columbia has not adopted the new federal break on tips.
- District of Columbia has not adopted the new federal break on overtime.
- District of Columbia has not adopted the new federal break on overtime.
- Georgia has not adopted the new federal break on tips.
- Georgia has not adopted the new federal break on overtime.
- Hawaii has not adopted the new federal break on tips.
- Hawaii has not adopted the new federal break on tips.
- Hawaii has not adopted the new federal break on overtime.
- Hawaii has not adopted the new federal break on overtime.
- Illinois has not adopted the new federal break on tips.
- Illinois has not adopted the new federal break on tips.
- Illinois has not adopted the new federal break on overtime.
- Illinois has not adopted the new federal break on overtime.
- Indiana has not adopted the new federal break on tips.
- Indiana has not adopted the new federal break on overtime.
- Kansas has not adopted the new federal break on tips.
- Kansas has not adopted the new federal break on tips.
- Kansas has not adopted the new federal break on overtime.
- Kansas has not adopted the new federal break on overtime.
- Kentucky has not adopted the new federal break on tips.
- Kentucky has not adopted the new federal break on tips.
- Kentucky has not adopted the new federal break on overtime.
- Kentucky has not adopted the new federal break on overtime.
- Louisiana has not adopted the new federal break on tips.
- Louisiana has not adopted the new federal break on tips.
- Louisiana has not adopted the new federal break on overtime.
- Louisiana has not adopted the new federal break on overtime.
- Maine has not adopted the new federal break on tips.
- Maine has not adopted the new federal break on tips.
- Maine has not adopted the new federal break on overtime.
- Maine has not adopted the new federal break on overtime.
- Maryland has not adopted the new federal break on tips.
- Maryland has not adopted the new federal break on tips.
- Maryland has not adopted the new federal break on overtime.
- Maryland has not adopted the new federal break on overtime.
- Massachusetts has not adopted the new federal break on tips.
- Massachusetts has not adopted the new federal break on tips.
- Massachusetts has not adopted the new federal break on overtime.
- Massachusetts has not adopted the new federal break on overtime.
- Michigan has not adopted the new federal break on tips.
- Michigan has not adopted the new federal break on overtime.
- Minnesota has not adopted the new federal break on tips.
- Minnesota has not adopted the new federal break on tips.
- Minnesota has not adopted the new federal break on overtime.
- Minnesota has not adopted the new federal break on overtime.
- Mississippi has not adopted the new federal break on tips.
- Mississippi has not adopted the new federal break on tips.
- Mississippi has not adopted the new federal break on overtime.
- Mississippi has not adopted the new federal break on overtime.
- Missouri has not adopted the new federal break on tips.
- Missouri has not adopted the new federal break on tips.
- Missouri has not adopted the new federal break on overtime.
- Missouri has not adopted the new federal break on overtime.
- Nebraska has not adopted the new federal break on tips.
- Nebraska has not adopted the new federal break on tips.
- Nebraska has not adopted the new federal break on overtime.
- Nebraska has not adopted the new federal break on overtime.
- New Jersey has not adopted the new federal break on tips.
- New Jersey has not adopted the new federal break on tips.
- New Jersey has not adopted the new federal break on overtime.
- New Jersey has not adopted the new federal break on overtime.
- New Mexico has not adopted the new federal break on tips.
- New Mexico has not adopted the new federal break on tips.
- New Mexico has not adopted the new federal break on overtime.
- New Mexico has not adopted the new federal break on overtime.
- New York has not adopted the new federal break on tips.
- New York has not adopted the new federal break on overtime.
- New York has not adopted the new federal break on overtime.
- North Carolina has not adopted the new federal break on tips.
- North Carolina has not adopted the new federal break on tips.
- North Carolina has not adopted the new federal break on overtime.
- North Carolina has not adopted the new federal break on overtime.
- Ohio has not adopted the new federal break on tips.
- Ohio has not adopted the new federal break on tips.
- Ohio has not adopted the new federal break on overtime.
- Ohio has not adopted the new federal break on overtime.
- Oklahoma has not adopted the new federal break on tips.
- Oklahoma has not adopted the new federal break on tips.
- Oklahoma has not adopted the new federal break on overtime.
- Oklahoma has not adopted the new federal break on overtime.
- Pennsylvania has not adopted the new federal break on tips.
- Pennsylvania has not adopted the new federal break on tips.
- Pennsylvania has not adopted the new federal break on overtime.
- Pennsylvania has not adopted the new federal break on overtime.
- Rhode Island has not adopted the new federal break on tips.
- Rhode Island has not adopted the new federal break on tips.
- Rhode Island has not adopted the new federal break on overtime.
- Rhode Island has not adopted the new federal break on overtime.
- South Carolina has not adopted the new federal break on tips.
- South Carolina has not adopted the new federal break on tips.
- South Carolina has not adopted the new federal break on overtime.
- South Carolina has not adopted the new federal break on overtime.
- Utah has not adopted the new federal break on tips.
- Utah has not adopted the new federal break on tips.
- Utah has not adopted the new federal break on overtime.
- Utah has not adopted the new federal break on overtime.
- Vermont has not adopted the new federal break on tips.
- Vermont has not adopted the new federal break on tips.
- Vermont has not adopted the new federal break on overtime.
- Vermont has not adopted the new federal break on overtime.
- Virginia has not adopted the new federal break on tips.
- Virginia has not adopted the new federal break on tips.
- Virginia has not adopted the new federal break on overtime.
- Virginia has not adopted the new federal break on overtime.
- West Virginia has not adopted the new federal break on tips.
- West Virginia has not adopted the new federal break on tips.
- West Virginia has not adopted the new federal break on overtime.
- West Virginia has not adopted the new federal break on overtime.
- Wisconsin has not adopted the new federal break on tips.
- Wisconsin has not adopted the new federal break on tips.
- Wisconsin has not adopted the new federal break on overtime.
- Wisconsin has not adopted the new federal break on overtime.
- If you are married, two of these breaks only exist on a joint return.
- Social Security and Medicare still come out of tips and overtime.
- The tips deduction only covers occupations on a published Treasury list.
- From 2026 there is a deduction for cash gifts to charity for people who take the standard deduction.
- If you add up your deductions, mortgage insurance is deductible again from 2026.
- Alabama's answer is different for 2025 and 2026.
- Colorado's answer is different for 2025 and 2026.
- Georgia's answer is different for 2025 and 2026.
- Indiana's answer is different for 2025 and 2026.
- Michigan's answer is different for 2025 and 2026.
- New York's answer is different for 2025 and 2026.
- Colorado's 2026 change is under a legal challenge.
This list is drawn only from what you answered, and it stops at five. A rule that is not listed here is not a rule we have ruled out.
Two states are in play
Two states are in play here. We hold no data on how two states divide the tax on the same wages, so we cannot tell you which one taxes this money, and nothing below settles it. Read everything below as your home state's own rules, not as your answer.
Working from home for an out-of-state employer can change which state taxes your pay. We hold no data on that at all, for any state, so we cannot tell you what your two states do. Check both states' revenue departments.
- Alabama: what we hold on Alabama and our source for Alabama.
- Alaska: what we hold on Alaska and our source for Alaska.
- Arizona: what we hold on Arizona and our source for Arizona.
- Arkansas: what we hold on Arkansas and our source for Arkansas.
- California: what we hold on California and our source for California.
- Colorado: what we hold on Colorado and our source for Colorado.
- Connecticut: what we hold on Connecticut and our source for Connecticut.
- Delaware: what we hold on Delaware and our source for Delaware.
- District of Columbia: what we hold on District of Columbia and our source for District of Columbia.
- Florida: what we hold on Florida and our source for Florida.
- Georgia: what we hold on Georgia and our source for Georgia.
- Hawaii: what we hold on Hawaii and our source for Hawaii.
- Idaho: what we hold on Idaho and our source for Idaho.
- Illinois: what we hold on Illinois and our source for Illinois.
- Indiana: what we hold on Indiana and our source for Indiana.
- Iowa: what we hold on Iowa and our source for Iowa.
- Kansas: what we hold on Kansas and our source for Kansas.
- Kentucky: what we hold on Kentucky and our source for Kentucky.
- Louisiana: what we hold on Louisiana and our source for Louisiana.
- Maine: what we hold on Maine and our source for Maine.
- Maryland: what we hold on Maryland and our source for Maryland.
- Massachusetts: what we hold on Massachusetts and our source for Massachusetts.
- Michigan: what we hold on Michigan and our source for Michigan.
- Minnesota: what we hold on Minnesota and our source for Minnesota.
- Mississippi: what we hold on Mississippi and our source for Mississippi.
- Missouri: what we hold on Missouri and our source for Missouri.
- Montana: what we hold on Montana and our source for Montana.
- Nebraska: what we hold on Nebraska and our source for Nebraska.
- Nevada: what we hold on Nevada and our source for Nevada.
- New Hampshire: what we hold on New Hampshire and our source for New Hampshire.
- New Jersey: what we hold on New Jersey and our source for New Jersey.
- New Mexico: what we hold on New Mexico and our source for New Mexico.
- New York: what we hold on New York and our source for New York.
- North Carolina: what we hold on North Carolina and our source for North Carolina.
- North Dakota: what we hold on North Dakota and our source for North Dakota.
- Ohio: what we hold on Ohio and our source for Ohio.
- Oklahoma: what we hold on Oklahoma and our source for Oklahoma.
- Oregon: what we hold on Oregon and our source for Oregon.
- Pennsylvania: what we hold on Pennsylvania and our source for Pennsylvania.
- Rhode Island: what we hold on Rhode Island and our source for Rhode Island.
- South Carolina: what we hold on South Carolina and our source for South Carolina.
- South Dakota: what we hold on South Dakota and our source for South Dakota.
- Tennessee: what we hold on Tennessee and our source for Tennessee.
- Texas: what we hold on Texas and our source for Texas.
- Utah: what we hold on Utah and our source for Utah.
- Vermont: what we hold on Vermont and our source for Vermont.
- Virginia: what we hold on Virginia and our source for Virginia.
- Washington: what we hold on Washington and our source for Washington.
- West Virginia: what we hold on West Virginia and our source for West Virginia.
- Wisconsin: what we hold on Wisconsin and our source for Wisconsin.
- Wyoming: what we hold on Wyoming and our source for Wyoming.
We cannot tell you which state you file in, and nothing on this page decides that.
You moved states this year
You moved states this year. Everything below assumes a full year in one state. A part-year move is a different question and we do not cover it. Check both states' revenue departments for how to split the year.
- Alabama: what we hold on Alabama and our source for Alabama.
- Alaska: what we hold on Alaska and our source for Alaska.
- Arizona: what we hold on Arizona and our source for Arizona.
- Arkansas: what we hold on Arkansas and our source for Arkansas.
- California: what we hold on California and our source for California.
- Colorado: what we hold on Colorado and our source for Colorado.
- Connecticut: what we hold on Connecticut and our source for Connecticut.
- Delaware: what we hold on Delaware and our source for Delaware.
- District of Columbia: what we hold on District of Columbia and our source for District of Columbia.
- Florida: what we hold on Florida and our source for Florida.
- Georgia: what we hold on Georgia and our source for Georgia.
- Hawaii: what we hold on Hawaii and our source for Hawaii.
- Idaho: what we hold on Idaho and our source for Idaho.
- Illinois: what we hold on Illinois and our source for Illinois.
- Indiana: what we hold on Indiana and our source for Indiana.
- Iowa: what we hold on Iowa and our source for Iowa.
- Kansas: what we hold on Kansas and our source for Kansas.
- Kentucky: what we hold on Kentucky and our source for Kentucky.
- Louisiana: what we hold on Louisiana and our source for Louisiana.
- Maine: what we hold on Maine and our source for Maine.
- Maryland: what we hold on Maryland and our source for Maryland.
- Massachusetts: what we hold on Massachusetts and our source for Massachusetts.
- Michigan: what we hold on Michigan and our source for Michigan.
- Minnesota: what we hold on Minnesota and our source for Minnesota.
- Mississippi: what we hold on Mississippi and our source for Mississippi.
- Missouri: what we hold on Missouri and our source for Missouri.
- Montana: what we hold on Montana and our source for Montana.
- Nebraska: what we hold on Nebraska and our source for Nebraska.
- Nevada: what we hold on Nevada and our source for Nevada.
- New Hampshire: what we hold on New Hampshire and our source for New Hampshire.
- New Jersey: what we hold on New Jersey and our source for New Jersey.
- New Mexico: what we hold on New Mexico and our source for New Mexico.
- New York: what we hold on New York and our source for New York.
- North Carolina: what we hold on North Carolina and our source for North Carolina.
- North Dakota: what we hold on North Dakota and our source for North Dakota.
- Ohio: what we hold on Ohio and our source for Ohio.
- Oklahoma: what we hold on Oklahoma and our source for Oklahoma.
- Oregon: what we hold on Oregon and our source for Oregon.
- Pennsylvania: what we hold on Pennsylvania and our source for Pennsylvania.
- Rhode Island: what we hold on Rhode Island and our source for Rhode Island.
- South Carolina: what we hold on South Carolina and our source for South Carolina.
- South Dakota: what we hold on South Dakota and our source for South Dakota.
- Tennessee: what we hold on Tennessee and our source for Tennessee.
- Texas: what we hold on Texas and our source for Texas.
- Utah: what we hold on Utah and our source for Utah.
- Vermont: what we hold on Vermont and our source for Vermont.
- Virginia: what we hold on Virginia and our source for Virginia.
- Washington: what we hold on Washington and our source for Washington.
- West Virginia: what we hold on West Virginia and our source for West Virginia.
- Wisconsin: what we hold on Wisconsin and our source for Wisconsin.
- Wyoming: what we hold on Wyoming and our source for Wyoming.
Your paycheck right now
Alabama
State income tax in Alabama
Alabama uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Some places in Alabama levy their own income tax
Several Alabama municipalities levy a local 'occupational tax' withheld from wages of anyone working in the city (resident or not): Birmingham 1.0%, Bessemer 1.0%, Gadsden 2.0%, plus others (e.g., Macon County). It applies to earned wages only — not dividends, rent or capital gains — and the employer withholds and remits it.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Alabama
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Alabama withholds a flat 5% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Alabama
Workers in cities like Gadsden (2.0%), Birmingham (1.0%) and Bessemer (1.0%) have a municipal occupational tax withheld from every paycheck on top of the 2%–5% state income tax — a local deduction non-Alabamians rarely expect.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Alaska
State income tax in Alaska
Alaska has no state income tax on wages.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Alaska
- State Unemployment Insurance (SUI) — employee share: 0.50%, $54,200 taxable wage base (2026); max employee contribution ~$271/yr. Not in our take-home estimate. source
Whether any of these reach your own pay depends on the work being covered Alaska employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
No city or county income tax anywhere in Alaska
No state individual income tax and no local/municipal income taxes. (Localities may levy local SALES taxes, but not income taxes.)
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Alaska
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Alaska has no state income tax, so nothing is withheld for state income tax on a bonus.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Alaska
Alaska pays residents an annual Permanent Fund Dividend instead of taxing them — the 2025 PFD was $1,000 per eligible resident; note the PFD is taxable for FEDERAL income tax (reported on 1099-MISC) even though there is no state income tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Arizona
State income tax in Arizona
Arizona has one flat rate of 2.5% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Arizona
No Arizona city or county may levy an income or wage tax — the state prohibits municipal/county income taxes. Phoenix, Tucson, Mesa, Scottsdale, and all other municipalities operate under the state-only flat 2.5% income tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Arizona
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Arizona has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Arizona
Arizona's $15.15 state minimum wage is CPI-indexed each January 1 by the Industrial Commission (the $0.45 bump for 2026 came from Aug 2024-Aug 2025 inflation), and home-rule cities like Flagstaff ($18.35) can set substantially higher local minimums.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Arkansas
State income tax in Arkansas
Arkansas uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Arkansas
No Arkansas city or county levies a local income/payroll tax; only state income tax is withheld.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Arkansas
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Arkansas withholds a flat 3.9% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Arkansas
Arkansas has the second-highest combined average sales tax in this group at 9.48%, pairing a 6.5% state rate with heavy local add-ons — a notable hit to take-home spending power despite the low income tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
California
State income tax in California
California uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in California
- CA SDI: 1.3% of pay. State Disability Insurance (includes Paid Family Leave); no wage cap since SB 951 (Jan 1, 2024) source
Whether any of these reach your own pay depends on the work being covered California employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
No city or county income tax anywhere in California
No California city or county levies a personal income tax — state law gives the Franchise Tax Board exclusive authority over personal income tax. San Francisco's Gross Receipts Tax is a business tax, not a wage tax, and does not affect W-2 take-home pay.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in California
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
10.23% on bonuses and stock options, and 6.6% on other supplemental pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About California
California's top income tax rate is 13.3% (the highest state rate in the U.S.), and combined with the uncapped 1.3% SDI it reaches an effective ~14.6% top marginal rate on wage income.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Colorado
State income tax in Colorado
Colorado has one flat rate of 4.4% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Colorado
- CO FAMLI: 0.44% of pay, up to $184,500 of wages. Paid Family & Medical Leave Insurance (employee half of the 0.88% total) source
Whether any of these reach your own pay depends on the work being covered Colorado employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
No city or county income tax anywhere in Colorado
Colorado does not allow municipalities or counties to levy a personal income tax. The state has a single flat individual income tax rate; no local/city income tax anywhere in the state. (Note: some CO cities like Denver, Aurora, Greenwood Village, Glendale, Sheridan levy a flat per-month 'Occupational Privilege Tax'/head tax of a few dollars on employees who earn above a threshold — this is a fixed-dollar head tax, not a percentage income tax.)
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Colorado
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Colorado has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Colorado
Colorado's FAMLI paid-leave premium dropped to 0.88% of wages for 2026 (from 0.90% in 2025), split evenly so employees pay 0.44%; employers with 9 or fewer workers owe no employer share, meaning a small-business employee still pays only 0.44%.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Connecticut
State income tax in Connecticut
Connecticut uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Connecticut
- CT Paid Leave: 0.5% of pay, up to $184,500 of wages. CT Paid Leave (fully employee-funded; rate held at 0.5% for 2026) source
Whether any of these reach your own pay depends on the work being covered Connecticut employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
No city or county income tax anywhere in Connecticut
No municipal or local income taxes; only the state income tax (2%–6.99%) applies. Connecticut towns rely almost entirely on property tax for local revenue since there are no local income or sales taxes.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Connecticut
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Connecticut has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Connecticut
Connecticut has no local sales taxes — the 6.35% rate is identical statewide — so a paycheck-to-spending comparison needs no city/county sales-tax lookup, unlike most states.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Delaware
State income tax in Delaware
Delaware uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Delaware
- Delaware Paid Leave (PFML) — employee share: Up to 0.4% of wages (employee may be required to pay up to 50% of the 0.8% total premium), $184,500 (Social Security wage cap); max employee cost ~$738/yr. Not in our take-home estimate. source
Whether any of these reach your own pay depends on the work being covered Delaware employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Some places in Delaware levy their own income tax
Only the City of Wilmington levies a local earned-income (wage) tax: a flat 1.25% on all wages, applied to BOTH Wilmington residents and non-residents who work inside city limits. No other Delaware city or county has a local income tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Delaware
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Delaware has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Delaware
Delaware's Paid Leave (PFML) program took full effect Jan 1, 2026 — the first year workers can file claims — with a new employee payroll deduction of up to 0.4% of wages (half of the 0.8% premium) appearing on paychecks.
Applies to tax year 2026.
We last checked this on 26 June 2026.
District of Columbia
State income tax in District of Columbia
District of Columbia uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in District of Columbia
DC is itself the taxing jurisdiction; there is no separate city/county income tax layered on top. The DC individual income tax is graduated, 4.00% to 10.75% for 2026. (Note: DC cannot tax nonresident commuters' wages under federal law.)
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in District of Columbia
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
District of Columbia has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About District of Columbia
DC's general sales tax is scheduled to rise from 6.00% to 7.00% on October 1, 2026, and DC levies the highest top marginal individual income tax rate in the region at 10.75%.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Florida
State income tax in Florida
Florida has no state income tax on wages.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Florida
Florida has no state individual income tax and no local/city income tax. Counties may add a discretionary sales surtax (0.5%–2%) but not an income tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Florida
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Florida has no state income tax, so nothing is withheld for state income tax on a bonus.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Florida
Florida is the only one of these states whose minimum wage rises mid-year on Sep 30 (not Jan 1): it hits $14.00 through Sep 29, 2026 and steps to $15.00 on Sep 30, 2026 under voter-approved Amendment 2.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Georgia
State income tax in Georgia
Georgia has one flat rate of 4.99% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Georgia
Georgia does not permit municipalities or counties to levy an income tax on wages; only the state flat individual income tax applies. Local jurisdictions raise revenue via sales and property taxes instead.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Georgia
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Georgia has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Georgia
Georgia levies no statewide payroll insurance tax and no local income tax, so a worker's only income-tax withholding is the single state flat rate — but the state's notoriously low $5.15 statutory minimum is overridden by federal $7.25 for nearly all employees.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Hawaii
State income tax in Hawaii
Hawaii uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Hawaii
- HI TDI: 0.5% of pay, capped at $7.50 a week. Temporary Disability Insurance (employer may withhold up to 0.5% of weekly wages, max $7.50/week) source
Whether any of these reach your own pay depends on the work being covered Hawaii employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
No city or county income tax anywhere in Hawaii
No local, county, or city income taxes. Only the state levies income tax, with a graduated rate topping out at 11.00% - the highest top marginal individual income tax rate of any U.S. state. Hawaii's 'sales tax' is technically the General Excise Tax (GET) on business gross receipts, not a true retail sales tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Hawaii
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Hawaii has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Hawaii
Hawaii's TDI is the only mandatory employee-side payroll deduction in the state and is tiny in absolute terms: capped at 0.5% of weekly wages with a maximum deduction of just $7.50 per week (on a $1,500.21 weekly wage base) for 2026 - there is no state PFML/SDI beyond TDI.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Idaho
State income tax in Idaho
Idaho uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Idaho
Idaho has no local or municipal income taxes; only the state flat income tax of 5.3% applies.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Idaho
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Idaho withholds a flat 5.3% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Idaho
Idaho is one of the few states that taxes groceries at the full 6% sales tax, but offsets it with a refundable grocery (food) tax credit of $155 per person/dependent claimed on the income tax return, even by non-filers.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Illinois
State income tax in Illinois
Illinois has one flat rate of 4.95% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Illinois
No municipality or county in Illinois levies a local income or wage tax — Chicago and Cook County impose no city wage tax on employees. All wage income is taxed only at the flat state rate of 4.95%.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Illinois
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Illinois has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Illinois
Illinois has no employee-side payroll deductions for disability, paid family leave, or unemployment — SUI is fully employer-paid (0.675%-6.875% on the first $13,271 of wages in 2026), so an Illinois paycheck shows only the flat 4.95% state income tax beyond federal items.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Indiana
State income tax in Indiana
Indiana has one flat rate of 2.95% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Some places in Indiana levy their own income tax
All 92 Indiana counties levy a local income tax (LIT), withheld by employers based on the employee's COUNTY OF RESIDENCE (not work county) as of Jan 1. 2026 county rates range roughly from 0.5% to 3.0%+. Six counties raised rates effective Jan 1, 2026. Marion (Indianapolis) ~2.02%, Hamilton ~1.1%, Allen ~1.59%. Official rates are in DOR Departmental Notice #1.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Indiana
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Indiana has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Indiana
Every one of Indiana's 92 counties imposes its own local income tax stacked on top of the state rate, and it is withheld based on where you LIVE on Jan 1, not where you work — so two coworkers at the same employer can have different total withholding.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Iowa
State income tax in Iowa
Iowa has one flat rate of 3.8% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Some places in Iowa levy their own income tax
Iowa school districts levy a local income surtax assessed as a percentage of state income tax liability (up to 20%), not of income. About 87% of districts impose it; the income-weighted average is roughly 0.3%. Three counties (Appanoose, Pocahontas, Winnebago) also use a surtax for EMS. It is filed with the state IA 1040 return based on the district you reside in on the last day of the tax year.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Iowa
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Iowa withholds a flat 3.8% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Iowa
Unemployment insurance is funded entirely by employers in Iowa; employees have nothing withheld from their paychecks for state UI, and 2026 employer rates draw from Table D, the lowest allowed by law.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Kansas
State income tax in Kansas
Kansas uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Kansas
No Kansas city or county levies a local income tax on wages. Some counties, cities and townships do levy a local 'intangibles tax' on income from intangible property (bank interest, dividends, CD earnings) — filed on Form 200 with the county clerk by April 15 if $5+ is due — but it does NOT apply to wages/salary, so it never appears in payroll withholding.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Kansas
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Kansas withholds a flat 5% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Kansas
Kansas localities can tax interest and dividend income via a local 'intangibles tax' (Form 200, filed with the county clerk), but it explicitly excludes wages, so a paycheck shows no local withholding.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Kentucky
State income tax in Kentucky
Kentucky has one flat rate of 3.5% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Some places in Kentucky levy their own income tax
Kentucky cities AND counties may each levy a local 'occupational license fee' (a wage tax on gross earnings) and the two can STACK. 87 of 120 counties levied it; rates run roughly 0.5%-2.5%. Louisville/Jefferson County: 2.2% for residents (1.25% Louisville Metro + 0.2% TARC + 0.75% school board); nonresidents pay 1.45% (exempt from the 0.75% school-board portion). Lexington-Fayette: 2.25%. Withheld by employers where work is performed.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Kentucky
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Kentucky has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Kentucky
Unlike most states, Kentucky has no statewide payroll insurance tax but its local occupational license fees can stack city + county on the same wages — e.g. a Louisville resident pays a combined 2.2% local wage tax on top of the 3.5% state rate.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Louisiana
State income tax in Louisiana
Louisiana has one flat rate of 3% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Louisiana
Louisiana parishes and municipalities do not levy a local income tax on wages; only the state flat individual income tax applies. Local revenue comes from sales and property taxes (Louisiana has the nation's highest average local sales tax).
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Louisiana
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Louisiana has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Louisiana
Louisiana's 2025 tax reform replaced its graduated income tax with a flat 3% rate and raised the standard deduction to $12,500 single / $25,000 joint; the state sales tax was raised to 5.00% (from 4.45%) through 2029 and is scheduled to drop to 4.75% on Jan 1, 2030.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Maine
State income tax in Maine
Maine uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Maine
- ME PFML: 0.5% of pay, up to $184,500 of wages. Paid Family & Medical Leave (employee max 0.5%; live on paychecks since Jan 1, 2025) source
Whether any of these reach your own pay depends on the work being covered Maine employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
No city or county income tax anywhere in Maine
No municipal, county, or city income taxes in Maine. Only the state levies an income tax (graduated 5.8%-7.15% for 2026). No Maine locality is authorized to impose a local income or local sales tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Maine
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Maine withholds a flat 5% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Maine
Maine is a single-rate sales tax state at 5.5% with zero local add-ons (no city or county can levy sales tax), giving it one of the lowest combined sales tax burdens in the country - the trade-off is comparatively high property taxes.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Maryland
State income tax in Maryland
Maryland uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Some places in Maryland levy their own income tax
All 23 Maryland counties plus Baltimore City levy a local 'piggyback' income tax, deducted via withholding and paid with the state return. The maximum local rate for 2026 is 3.30% (the cap rose from 3.20% for tax years after 2024). Rates range from 2.25% (Worcester, the lowest) up to 3.30%; most large counties - Howard, Montgomery, Prince George's and Baltimore City - are at 3.20%, while only Dorchester and Kent are at the 3.30% cap. Anne Arundel and Frederick counties use income-tiered rates.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Maryland
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Maryland has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Maryland
Maryland's FAMLI paid family and medical leave program has no employee payroll deduction in 2026; contributions were delayed to begin January 1, 2027, with benefits starting in 2028.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Massachusetts
State income tax in Massachusetts
Massachusetts uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Massachusetts
- MA PFML: 0.46% of pay, up to $184,500 of wages. Paid Family & Medical Leave employee share (0.28% medical + 0.18% family) source
Whether any of these reach your own pay depends on the work being covered Massachusetts employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
No city or county income tax anywhere in Massachusetts
Massachusetts has no local or municipal income tax; only the state 5% flat tax (plus the 4% surtax on income over the inflation-adjusted threshold) applies.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Massachusetts
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Massachusetts has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Massachusetts
Employers with fewer than 25 covered workers owe no employer PFML share but may still withhold up to the full employee portion (0.46%) from paychecks; the employee share of the medical-leave portion can be up to 100% (0.28%).
Applies to tax year 2026.
We last checked this on 26 June 2026.
Michigan
State income tax in Michigan
Michigan has one flat rate of 4.25% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Some places in Michigan levy their own income tax
24 Michigan cities levy a local income tax under the Uniform City Income Tax Ordinance (Act 284 of 1964). Detroit is highest at 2.4% residents / 1.2% nonresidents; Grand Rapids and Saginaw at 1.5% / 0.75%; Highland Park at 2.0% / 1.0%; the remaining ~20 cities (e.g., Lansing, Flint, Pontiac, Battle Creek, Walker, Hamtramck) at 1.0% / 0.5%. Nonresidents are taxed only on income earned within city limits.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Michigan
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Michigan has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Michigan
On top of the 4.25% state tax, 24 Michigan cities add a local income tax — a Detroit resident pays 2.4% city tax for a combined 6.65% Michigan income tax before federal, while nonresidents working in those cities are taxed at half the resident rate on city-earned wages only.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Minnesota
State income tax in Minnesota
Minnesota uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Minnesota
- Paid Leave (PFML) — employee share: 0.44% (employer may deduct up to half of the 0.88% total premium), Capped at the 2026 Social Security wage base, $184,500. Not in our take-home estimate. source
Whether any of these reach your own pay depends on the work being covered Minnesota employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
No city or county income tax anywhere in Minnesota
Minnesota has no local/city/county income taxes; only the state income tax applies. Local governments fund services via property tax, local sales taxes, and state Local Government Aid.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Minnesota
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Minnesota withholds a flat 6.25% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Minnesota
Minnesota's top marginal income tax rate of 9.85% is among the highest in the nation and kicks in above $193,240 (single) / $321,450 (married filing jointly) for tax year 2026; brackets were inflation-adjusted 2.369% from 2025.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Mississippi
State income tax in Mississippi
Mississippi uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Mississippi
Mississippi has no local, city, or county income tax. Only the state flat individual income tax applies to wages.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Mississippi
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Mississippi has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Mississippi
Under the 2025 'Build Up Mississippi Act,' the income tax is scheduled to fall to 3% by 2030 and is set to phase out entirely (potentially by ~2040) through revenue-growth triggers, which would make Mississippi a no-income-tax state.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Missouri
State income tax in Missouri
Missouri uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Some places in Missouri levy their own income tax
Only Kansas City and St. Louis City levy a 1% local earnings tax; Missouri law bars any other municipality from imposing a local income tax. Residents of those cities pay 1% on all earnings; non-residents pay 1% on income earned within city limits.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Missouri
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Missouri withholds a flat 4.7% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Missouri
Missouri's top state income tax rate dropped to 4.7% for 2026 (one of the lowest among states that tax wages), and the state has no employee-side payroll contributions (no SDI/PFML), so outside KC/STL the only state withholding is the income tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Montana
State income tax in Montana
Montana uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Montana
No municipal or county income taxes. Montana has only a statewide graduated individual income tax (4.70% to 5.65% for 2026, dropping to 5.40% top rate in 2027).
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Montana
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Montana withholds a flat 5% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Montana
Montana taxes net long-term capital gains at lower, separate rates (3.0% and 4.1% for 2026) than ordinary wage income (4.70%/5.65%), so investment income is treated more favorably than paycheck income.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Nebraska
State income tax in Nebraska
Nebraska uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Nebraska
Nebraska does not authorize any city or county local income/payroll tax; only state income tax is withheld.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Nebraska
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Nebraska withholds a flat 3.5% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Nebraska
At $15.00/hr in 2026, Nebraska has by far the highest minimum wage of the six neighboring/Southern states in this group (the others sit at $7.25–$11.00), driven by voter-approved Initiative 433.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Nevada
State income tax in Nevada
Nevada has no state income tax on wages.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Nevada
Nevada has no state individual income tax and no local/city/county income taxes. No municipality levies an earnings or wage tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Nevada
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Nevada has no state income tax, so nothing is withheld for state income tax on a bonus.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Nevada
Nevada funds itself with no individual income tax but a relatively high 6.85% state sales tax (combined avg 8.24%), one of the higher base sales-tax rates among the no-income-tax states.
Applies to tax year 2026.
We last checked this on 26 June 2026.
New Hampshire
State income tax in New Hampshire
New Hampshire has no state income tax on wages.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in New Hampshire
No state wage income tax and no local/municipal income taxes. The Interest & Dividends tax (never on wages) was fully repealed effective Jan 1, 2025.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in New Hampshire
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
New Hampshire has no state income tax, so nothing is withheld for state income tax on a bonus.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About New Hampshire
New Hampshire offsets having no sales or wage income tax with one of the highest property-tax burdens in the U.S. (1.50% effective rate, among the top nationally), so the no-paycheck-tax advantage is partly recouped through home ownership costs.
Applies to tax year 2026.
We last checked this on 26 June 2026.
New Jersey
State income tax in New Jersey
New Jersey uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in New Jersey
- NJ TDI: 0.19% of pay, up to $171,100 of wages. Temporary Disability Insurance worker share (2026 worker wage base $171,100) source
- NJ FLI: 0.23% of pay, up to $171,100 of wages. Family Leave Insurance (employee-funded) source
- Unemployment Insurance (UI) - employee share: 0.3825%, $44,800. Not in our take-home estimate. source
- Workforce Development/Supplemental Workforce Funds (WF/SWF) - employee share: 0.0425%, $44,800. Not in our take-home estimate. source
Whether any of these reach your own pay depends on the work being covered New Jersey employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Some places in New Jersey levy their own income tax
New Jersey has no general local income tax, but Newark levies a 1% payroll tax that is employer-paid (not deducted from employee paychecks). For employees, only state income tax and state payroll deductions apply.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in New Jersey
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
New Jersey has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About New Jersey
For 2026 NJ employees pay into four separate state payroll funds with two different wage caps: UI (0.3825%) and WF/SWF (0.0425%) on the first $44,800, plus TDI (0.19%) and FLI (0.23%) up to $171,100.
Applies to tax year 2026.
We last checked this on 26 June 2026.
New Mexico
State income tax in New Mexico
New Mexico uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in New Mexico
No local/municipal income taxes. New Mexico has only a statewide graduated individual income tax (1.50% to 5.90% for 2026). Note: New Mexico's 'sales tax' is technically a Gross Receipts Tax (GRT) imposed on the seller, with local add-ons.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in New Mexico
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
New Mexico withholds a flat 5.9% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About New Mexico
A worker's applicable minimum wage in New Mexico depends on where the work is physically performed, not where the employer is based — so an employee in Santa Fe earns at least $15.40/hr while the statewide floor is $12.00/hr.
Applies to tax year 2026.
We last checked this on 26 June 2026.
New York
State income tax in New York
New York uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in New York
- NY PFL: 0.432% of pay, capped at $411.91 a year. Paid Family Leave (employee-funded; contributions stop at $411.91/yr) source
- NY DBL: 0.5% of pay, capped at $0.60 a week. Disability Benefits Law employee share (statutory $0.60/week cap; employer-collected where applied) source
Whether any of these reach your own pay depends on the work being covered New York employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Some places in New York levy their own income tax
New York City levies a resident income tax (2026 withholding brackets ~3.078%–3.876%) on NYC residents only. Yonkers adds a resident surcharge — 2026 resident withholding rate 1.95975% — plus a 0.50% nonresident earnings tax on income earned in Yonkers. No other NY localities levy a wage income tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in New York
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
New York withholds a flat 11.7% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About New York
Where you LIVE inside New York changes withholding sharply: NYC residents owe an extra city income tax (~3.08%–3.88%) and Yonkers residents owe a ~1.96% surcharge — neither applies if you live elsewhere in the state, even if you commute in.
Applies to tax year 2026.
We last checked this on 26 June 2026.
North Carolina
State income tax in North Carolina
North Carolina has one flat rate of 3.99% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in North Carolina
No city, county, or municipality in North Carolina levies a local income tax. Wage income is taxed only at the flat state rate (3.99% for tax year 2026).
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in North Carolina
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
North Carolina withholds a flat 4.09% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About North Carolina
NC's paycheck is unusually simple: a single flat state rate, zero local income tax statewide, and no employee SDI/PFML/SUI deductions — the only NC-specific items beyond federal are the flat 3.99% withholding.
Applies to tax year 2026.
We last checked this on 26 June 2026.
North Dakota
State income tax in North Dakota
North Dakota uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in North Dakota
North Dakota levies only a statewide individual income tax (graduated, 0% / 1.95% / 2.50% for 2026). No county, city, or municipal income taxes exist; the state preempts local income taxation.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in North Dakota
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
North Dakota withholds a flat 1.5% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About North Dakota
North Dakota funds over half (about 52%) of its state-and-local tax revenue from 'other taxes' (largely oil and gas severance taxes) rather than income or sales taxes, and it has no estate or inheritance tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Ohio
State income tax in Ohio
Ohio uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Some places in Ohio levy their own income tax
Ohio has extensive municipal income taxes: most cities levy 1.8%-2.75% (Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%, Toledo 2.25%, Akron 2.5%, Dayton 2.5%), collected mostly by RITA or the CCA rather than the state. Many school districts also levy a separate school district income tax. Credits typically apply between work-city and home-city taxes.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Ohio
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Ohio withholds a flat 2.75% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Ohio
Because of widespread municipal income taxes (collected by RITA/CCA), an Ohio worker's combined state-plus-local income tax can reach roughly 5%-5.25% in major cities even though the state rate is only 2.75%.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Oklahoma
State income tax in Oklahoma
Oklahoma uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Oklahoma
No Oklahoma city or county levies a local income/payroll tax; only state income tax is withheld.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Oklahoma
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Oklahoma withholds a flat 4.5% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Oklahoma
Oklahoma eliminated the 4.5% STATE sales tax on groceries effective Aug 29, 2024, but local city/county sales taxes (up to ~7%) still apply to food — so groceries are not fully tax-free.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Oregon
State income tax in Oregon
Oregon uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Oregon
- OR Paid Leave: 0.6% of pay, up to $184,500 of wages. Paid Leave Oregon employee share (60% of the 1% total) source
Whether any of these reach your own pay depends on the work being covered Oregon employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Some places in Oregon levy their own income tax
Portland metro area levies multiple local personal income taxes administered by the City of Portland Revenue Division: Metro Supportive Housing Services (SHS) tax of 1% on income above $128,000 single / $205,000 joint (2026, first inflation-adjusted year), and Multnomah County Preschool for All (PFA) tax of 1.5% above $125,000 single / $200,000 joint, plus an extra 1.5% above $250,000 single / $400,000 joint. No statewide local income tax outside the Portland metro.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Oregon
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Oregon withholds a flat 8% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Oregon
Oregon's minimum wage uses three regional tiers and changes every July 1 (not January 1): $16.80 Portland Metro, $15.55 Standard, $14.55 Non-Urban as of July 1, 2026 — uncommon both in its mid-year timing and its geography-based rates.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Pennsylvania
State income tax in Pennsylvania
Pennsylvania has one flat rate of 3.07% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Pennsylvania
- Unemployment Compensation (employee withholding): 0.07%, No wage cap — applies to all gross wages (70 cents per $1,000). Not in our take-home estimate. source
Whether any of these reach your own pay depends on the work being covered Pennsylvania employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Some places in Pennsylvania levy their own income tax
Nearly every PA municipality and school district levies a local Earned Income Tax (EIT) under Act 32, typically 1% combined in suburbs (split municipality/school district). Philadelphia imposes a separate Wage Tax (not EIT): 3.74% residents / 3.43% nonresidents through June 30, 2026, then 3.735% residents / 3.425% nonresidents effective July 1, 2026 (the first step of a five-year cut plan trending toward ~3.70%/3.39%). There is also a per-job Local Services Tax (LST), commonly $52/yr. EIT rates range roughly 0% to ~3.84% statewide; DCED maintains the official rate register.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Pennsylvania
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Pennsylvania has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Pennsylvania
PA's 3.07% state rate is flat with no standard deduction or personal exemption, so it applies from the first dollar of taxable compensation — and a Philadelphia resident also pays the 3.74% city Wage Tax, for a combined ~6.81% wage tax before federal.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Rhode Island
State income tax in Rhode Island
Rhode Island uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Rhode Island
- RI TDI/TCI: 1.1% of pay, up to $100,000 of wages. Temporary Disability + Caregiver Insurance (single employee-funded rate; 2026 base $100,000) source
Whether any of these reach your own pay depends on the work being covered Rhode Island employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
No city or county income tax anywhere in Rhode Island
No local, county, or city income taxes. Only the state levies income tax (graduated 3.75%-5.99% for 2025/2026). No municipality imposes a local income or local sales tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Rhode Island
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Rhode Island withholds a flat 5.99% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Rhode Island
Rhode Island levies a flat 7% statewide sales tax with no local add-ons - tied for the second-highest statewide base sales tax rate in the U.S. (only California's 7.25% base is higher), so the combined rate is 7% everywhere in the state.
Applies to tax year 2026.
We last checked this on 26 June 2026.
South Carolina
State income tax in South Carolina
South Carolina uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in South Carolina
No South Carolina city or county levies a local income/payroll tax; only state income tax is withheld.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in South Carolina
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
South Carolina has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About South Carolina
H.4216 decouples South Carolina from the federal standard/itemized deductions, starting from federal AGI and substituting a new 'SC Income Adjusted Deduction' (SCIAD) — changing how taxable income (and withholding) is computed for 2026 paychecks.
Applies to tax year 2026.
We last checked this on 26 June 2026.
South Dakota
State income tax in South Dakota
South Dakota has no state income tax on wages.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in South Dakota
No state individual income tax and no local/municipal income taxes.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in South Dakota
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
South Dakota has no state income tax, so nothing is withheld for state income tax on a bonus.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About South Dakota
South Dakota's minimum wage is automatically inflation-adjusted each January 1 under a 2014 voter-approved constitutional amendment, reaching $11.85/hr in 2026 — well above the federal $7.25 floor used by neighboring no-tax states.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Tennessee
State income tax in Tennessee
Tennessee has no state income tax on wages.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Tennessee
No state wage income tax and no local/city income taxes. The Hall income tax (on interest and dividends only, never on wages) was fully repealed effective Jan 1, 2021.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Tennessee
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Tennessee has no state income tax, so nothing is withheld for state income tax on a bonus.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Tennessee
Tennessee has the second-highest average combined sales tax in the nation at 9.61% (7.00% state + ~2.61% local), the trade-off for having no wage income tax.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Texas
State income tax in Texas
Texas has no state income tax on wages.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Texas
Texas has no state individual income tax and no local/city income tax. State law also bars cities and counties from imposing one. Revenue leans on sales and property taxes instead.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Texas
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Texas has no state income tax, so nothing is withheld for state income tax on a bonus.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Texas
Texas offsets its no-income-tax model with one of the nation's heaviest property-tax burdens (~1.47% effective rate) — a cost that hits homeowners and renters rather than appearing on the paycheck.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Utah
State income tax in Utah
Utah has one flat rate of 4.45% on income.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Utah
No Utah city or county levies a local income tax. Wage income is taxed only at the flat state rate (4.45% effective for tax year 2026).
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Utah
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Utah has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Utah
Despite a flat 4.45% income tax, Utah's $7.25 minimum wage sits well below its high $95K+ median household income — the gap reflects a low-property-tax (0.48%), high-earnings economy where the state minimum has not moved since 2009.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Vermont
State income tax in Vermont
Vermont uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Vermont
No municipal or county income taxes. Vermont has only a statewide graduated individual income tax (3.35% to 8.75% for 2026).
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Vermont
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Vermont works out the tax on your bonus as 30% of the federal tax already taken off it, not 30% of the bonus itself. So if $220 of federal tax comes off a $1,000 bonus, Vermont's share is worked out from that $220.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Vermont
Vermont carries one of the heaviest property-tax burdens in the U.S. (about 1.51% effective rate per Tax Foundation), driven largely by its statewide education property tax that funds public schools.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Virginia
State income tax in Virginia
Virginia uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Virginia
No Virginia city or county levies a local income/wage tax on employees. Localities raise revenue through real-estate, personal-property (incl. on cars), and a mandatory 1% local sales-tax add-on collected by the state.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Virginia
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Virginia withholds a flat 5.75% on bonuses.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Virginia
Virginia's minimum wage is now indexed to inflation: the Jan 1, 2026 bump to $12.77 came from an automatic CPI cost-of-living formula rather than a new legislative vote.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Washington
State income tax in Washington
Washington has no state income tax on wages.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs paid out of pay in Washington
- WA PFML: 0.807% of pay, up to $184,500 of wages. Paid Family & Medical Leave worker share (71.43% of the 1.13% total premium) source
- WA Cares Fund (long-term care) — fully employee-paid: 0.58% of gross wages, No wage cap (applies to all wages). Not in our take-home estimate. source
Whether any of these reach your own pay depends on the work being covered Washington employment.
Applies to tax year 2026.
We last checked this on 26 June 2026.
No city or county income tax anywhere in Washington
Washington has no state individual income tax on wages and no local/city wage income tax. (It does levy a 7% capital-gains excise tax on high investment gains, which is not a paycheck withholding.)
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Washington
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Washington has no state income tax, so nothing is withheld for state income tax on a bonus.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Washington
Washington's WA Cares 0.58% deduction has NO Social Security wage cap, unlike PFML — so high earners keep paying it on every dollar, making it proportionally costlier on large paychecks than the capped PFML premium.
Applies to tax year 2026.
We last checked this on 26 June 2026.
West Virginia
State income tax in West Virginia
West Virginia uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Some places in West Virginia levy their own income tax
West Virginia has no percentage-based local income tax, but several municipalities impose a flat per-worker 'City Service Fee' on anyone employed within city limits. Charleston charges $3.00/week ($6.00 per bi-weekly pay period); similar weekly fees apply in Huntington, Parkersburg, Morgantown ('Safe Streets' fee), Weirton and other cities. It is a fixed dollar fee, not a tax on income.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in West Virginia
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
West Virginia has no separate bonus rate. It withholds the same way as your regular pay.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About West Virginia
West Virginia cut its individual income tax rates again for 2026 (top rate dropped from 4.82% to 4.58%, bottom to 2.11%) as part of a multi-year phased reduction tied to revenue triggers.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Wisconsin
State income tax in Wisconsin
Wisconsin uses brackets, so the rate rises as income rises.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Wisconsin
No city or county income taxes anywhere in Wisconsin; residents pay only the state income tax. (Milwaukee levies a 2% city sales tax and 70 counties a 0.5% county sales tax, but no local income tax exists.)
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Wisconsin
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Wisconsin uses four bands, set by your annual gross wages: 3.54%, 4.65%, 5.30% and 7.65%.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Wisconsin
Wisconsin's minimum wage of $7.25 has been frozen since July 2009 — the same rate for 16+ years and tied to the federal floor — making it one of the lowest-paying minimum-wage states in 2026.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Wyoming
State income tax in Wyoming
Wyoming has no state income tax on wages.
These assume you pay tax in one state only.
Applies to tax year 2026.
We last checked this on 16 June 2026.
No city or county income tax anywhere in Wyoming
No state individual income tax and no local/municipal income taxes.
Applies to tax year 2026.
We last checked this on 26 June 2026.
How a bonus is withheld in Wyoming
Federal: a flat 22% on bonuses up to $1,000,000 for the year, and 37% on anything above that.
Wyoming has no state income tax, so nothing is withheld for state income tax on a bonus.
Withholding is what comes off on the day. It is not the tax you end up owing.
Applies to tax year 2026.
We last checked this on 16 June 2026.
About Wyoming
Wyoming's own statutory minimum wage is just $5.15/hr (one of the lowest state floors in the country), so workers are protected only by the federal $7.25/hr under the FLSA.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Social Security and Medicare
Social Security: 6.2% of your pay up to $184,500 for the year.
Medicare: 1.45% of every dollar you earn, with no upper limit. On top of that, an extra 0.9% on anything you earn above $200,000 on your own, or $250,000 if you are married and file together.
The new deductions on tips and overtime do not remove any of this.
Applies to tax year 2026.
We last checked this on 16 June 2026.
When you file
A deduction lowers the amount of your income that gets taxed. It is not money handed back to you, and it is not the same as a credit. Roughly, what a deduction is worth to you is the deduction amount multiplied by the rate your top dollars are taxed at.
Not sure which to pick? The return you file in early 2026 is your 2025 return.
Alabama
The new federal break on tips in Alabama
For tax year 2025: No
For tax year 2026: No
The detail on this one
Alabama does not conform to the full federal overtime deduction, but HB 527 (signed April 16, 2026) allows a smaller capped state deduction of up to $1,000 of qualified overtime compensation for tax years 2026–2028. Tips got no state relief — the federal tips deduction reduces your federal tax only. (Alabama's own earlier full overtime exemption ended June 30, 2025.)
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Alabama
For tax year 2025: No
For tax year 2026: Partly
The detail on this one
Alabama does not conform to the full federal overtime deduction, but HB 527 (signed April 16, 2026) allows a smaller capped state deduction of up to $1,000 of qualified overtime compensation for tax years 2026–2028. Tips got no state relief — the federal tips deduction reduces your federal tax only. (Alabama's own earlier full overtime exemption ended June 30, 2025.)
Applies to tax year 2026.
We last checked this on 7 July 2026.
Alaska
The new federal break on tips in Alaska
For tax year 2025: No state income tax
Alaska has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Alaska has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Alaska
For tax year 2025: No state income tax
Alaska has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Alaska has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Arizona
The new federal break on tips in Arizona
For tax year 2025: Yes
Arizona follows the new federal break on tips. Where the federal deduction applies, it also reduces the income Arizona taxes, not just federal income.
For tax year 2026: Yes
Arizona follows the new federal break on tips. Where the federal deduction applies, it also reduces the income Arizona taxes, not just federal income.
The detail on this one
Arizona adopted full OBBBA conformity in HB 4168, signed June 13, 2026 as part of the FY2026 budget deal. It creates a mandatory individual income-tax subtraction for qualified overtime and tips under A.R.S. §43-1022, retroactive to tax year 2025 and applying to 2026 and forward. (Earlier standalone conformity bills were vetoed in early 2026; the budget resolved it.)
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Arizona
For tax year 2025: Yes
Arizona follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income Arizona taxes, not just federal income.
For tax year 2026: Yes
Arizona follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income Arizona taxes, not just federal income.
The detail on this one
Arizona adopted full OBBBA conformity in HB 4168, signed June 13, 2026 as part of the FY2026 budget deal. It creates a mandatory individual income-tax subtraction for qualified overtime and tips under A.R.S. §43-1022, retroactive to tax year 2025 and applying to 2026 and forward. (Earlier standalone conformity bills were vetoed in early 2026; the budget resolved it.)
Applies to tax year 2026.
We last checked this on 7 July 2026.
Arkansas
The new federal break on tips in Arkansas
For tax year 2025: No
As of mid-2026, Arkansas has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Arkansas still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Arkansas has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Arkansas still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Arkansas has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Arkansas
For tax year 2025: No
As of mid-2026, Arkansas has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Arkansas still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Arkansas has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Arkansas still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Arkansas has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
California
The new federal break on tips in California
For tax year 2025: No
As of mid-2026, California has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and California still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, California has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and California still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
California has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in California
For tax year 2025: No
As of mid-2026, California has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and California still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, California has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and California still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
California has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Colorado
The new federal break on tips in Colorado
For tax year 2025: Yes
For tax year 2026: Yes
The detail on this one
Colorado allows the tips deduction both years. The overtime deduction flows through for 2025 but is added back from 2026 (HB25-1296), which is under a pending legal challenge.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Colorado
For tax year 2025: Yes
For tax year 2026: No
The detail on this one
Colorado allows the tips deduction both years. The overtime deduction flows through for 2025 but is added back from 2026 (HB25-1296), which is under a pending legal challenge.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Connecticut
The new federal break on tips in Connecticut
For tax year 2025: No
As of mid-2026, Connecticut has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Connecticut still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Connecticut has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Connecticut still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Connecticut has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Connecticut
For tax year 2025: No
As of mid-2026, Connecticut has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Connecticut still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Connecticut has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Connecticut still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Connecticut has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Delaware
The new federal break on tips in Delaware
For tax year 2025: No
As of mid-2026, Delaware has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Delaware still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Delaware has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Delaware still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Delaware has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Delaware
For tax year 2025: No
As of mid-2026, Delaware has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Delaware still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Delaware has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Delaware still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Delaware has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
District of Columbia
The new federal break on tips in District of Columbia
For tax year 2025: No
As of mid-2026, District of Columbia has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and District of Columbia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, District of Columbia has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and District of Columbia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
District of Columbia has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in District of Columbia
For tax year 2025: No
As of mid-2026, District of Columbia has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and District of Columbia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, District of Columbia has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and District of Columbia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
District of Columbia has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Florida
The new federal break on tips in Florida
For tax year 2025: No state income tax
Florida has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Florida has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Florida
For tax year 2025: No state income tax
Florida has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Florida has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Georgia
The new federal break on tips in Georgia
For tax year 2025: No
For tax year 2026: Partly
The detail on this one
Georgia decouples from the full federal deductions. For tax years 2026 through 2028 it offers a smaller capped state exclusion instead (HB 463, signed May 11, 2026: up to $1,750 of qualified overtime and $1,750 of cash tips), not the full federal amount.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Georgia
For tax year 2025: No
For tax year 2026: Partly
The detail on this one
Georgia decouples from the full federal deductions. For tax years 2026 through 2028 it offers a smaller capped state exclusion instead (HB 463, signed May 11, 2026: up to $1,750 of qualified overtime and $1,750 of cash tips), not the full federal amount.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Hawaii
The new federal break on tips in Hawaii
For tax year 2025: No
As of mid-2026, Hawaii has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Hawaii still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Hawaii has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Hawaii still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Hawaii has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Hawaii
For tax year 2025: No
As of mid-2026, Hawaii has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Hawaii still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Hawaii has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Hawaii still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Hawaii has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Idaho
The new federal break on tips in Idaho
For tax year 2025: Yes
Idaho follows the new federal break on tips. Where the federal deduction applies, it also reduces the income Idaho taxes, not just federal income.
For tax year 2026: Yes
Idaho follows the new federal break on tips. Where the federal deduction applies, it also reduces the income Idaho taxes, not just federal income.
The detail on this one
Idaho starts from federal taxable income and conformed via HB559 (2026), retroactive to 2025 — the deductions flow through.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Idaho
For tax year 2025: Yes
Idaho follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income Idaho taxes, not just federal income.
For tax year 2026: Yes
Idaho follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income Idaho taxes, not just federal income.
The detail on this one
Idaho starts from federal taxable income and conformed via HB559 (2026), retroactive to 2025 — the deductions flow through.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Illinois
The new federal break on tips in Illinois
For tax year 2025: No
As of mid-2026, Illinois has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Illinois still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Illinois has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Illinois still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Illinois has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Illinois
For tax year 2025: No
As of mid-2026, Illinois has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Illinois still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Illinois has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Illinois still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Illinois has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Indiana
The new federal break on tips in Indiana
For tax year 2025: No
For tax year 2026: Yes for tax year 2026 only
The detail on this one
Indiana decouples for 2025. SEA 243 couples for 2026 ONLY and currently sunsets after 2026 — 2027–2028 are not yet conformed.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Indiana
For tax year 2025: No
For tax year 2026: Yes for tax year 2026 only
The detail on this one
Indiana decouples for 2025. SEA 243 couples for 2026 ONLY and currently sunsets after 2026 — 2027–2028 are not yet conformed.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Iowa
The new federal break on tips in Iowa
For tax year 2025: Yes
Iowa follows the new federal break on tips. Where the federal deduction applies, it also reduces the income Iowa taxes, not just federal income.
For tax year 2026: Yes
Iowa follows the new federal break on tips. Where the federal deduction applies, it also reduces the income Iowa taxes, not just federal income.
The detail on this one
Iowa conforms (federal-taxable-income base); the deductions flow through to the state return.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Iowa
For tax year 2025: Yes
Iowa follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income Iowa taxes, not just federal income.
For tax year 2026: Yes
Iowa follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income Iowa taxes, not just federal income.
The detail on this one
Iowa conforms (federal-taxable-income base); the deductions flow through to the state return.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Kansas
The new federal break on tips in Kansas
For tax year 2025: No
As of mid-2026, Kansas has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Kansas still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Kansas has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Kansas still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Kansas has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Kansas
For tax year 2025: No
As of mid-2026, Kansas has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Kansas still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Kansas has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Kansas still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Kansas has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Kentucky
The new federal break on tips in Kentucky
For tax year 2025: No
As of mid-2026, Kentucky has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Kentucky still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Kentucky has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Kentucky still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Kentucky has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Kentucky
For tax year 2025: No
As of mid-2026, Kentucky has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Kentucky still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Kentucky has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Kentucky still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Kentucky has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Louisiana
The new federal break on tips in Louisiana
For tax year 2025: No
As of mid-2026, Louisiana has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Louisiana still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Louisiana has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Louisiana still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Louisiana has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Louisiana
For tax year 2025: No
As of mid-2026, Louisiana has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Louisiana still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Louisiana has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Louisiana still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Louisiana has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Maine
The new federal break on tips in Maine
For tax year 2025: No
As of mid-2026, Maine has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Maine still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Maine has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Maine still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Maine has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Maine
For tax year 2025: No
As of mid-2026, Maine has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Maine still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Maine has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Maine still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Maine has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Maryland
The new federal break on tips in Maryland
For tax year 2025: No
As of mid-2026, Maryland has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Maryland still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Maryland has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Maryland still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Maryland has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Maryland
For tax year 2025: No
As of mid-2026, Maryland has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Maryland still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Maryland has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Maryland still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Maryland has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Massachusetts
The new federal break on tips in Massachusetts
For tax year 2025: No
As of mid-2026, Massachusetts has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Massachusetts still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Massachusetts has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Massachusetts still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Massachusetts has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Massachusetts
For tax year 2025: No
As of mid-2026, Massachusetts has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Massachusetts still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Massachusetts has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Massachusetts still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Massachusetts has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Michigan
The new federal break on tips in Michigan
For tax year 2025: No
For tax year 2026: Yes
The detail on this one
Michigan starts from federal AGI, so there is no automatic flow-through. A state subtraction applies for 2026–2028 but NOT for 2025.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Michigan
For tax year 2025: No
For tax year 2026: Yes
The detail on this one
Michigan starts from federal AGI, so there is no automatic flow-through. A state subtraction applies for 2026–2028 but NOT for 2025.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Minnesota
The new federal break on tips in Minnesota
For tax year 2025: No
As of mid-2026, Minnesota has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Minnesota still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Minnesota has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Minnesota still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Minnesota has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Minnesota
For tax year 2025: No
As of mid-2026, Minnesota has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Minnesota still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Minnesota has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Minnesota still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Minnesota has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Mississippi
The new federal break on tips in Mississippi
For tax year 2025: No
As of mid-2026, Mississippi has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Mississippi still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Mississippi has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Mississippi still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Mississippi has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Mississippi
For tax year 2025: No
As of mid-2026, Mississippi has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Mississippi still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Mississippi has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Mississippi still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Mississippi has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Missouri
The new federal break on tips in Missouri
For tax year 2025: No
As of mid-2026, Missouri has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Missouri still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Missouri has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Missouri still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Missouri has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Missouri
For tax year 2025: No
As of mid-2026, Missouri has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Missouri still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Missouri has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Missouri still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Missouri has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Montana
The new federal break on tips in Montana
For tax year 2025: Yes
Montana follows the new federal break on tips. Where the federal deduction applies, it also reduces the income Montana taxes, not just federal income.
For tax year 2026: Yes
Montana follows the new federal break on tips. Where the federal deduction applies, it also reduces the income Montana taxes, not just federal income.
The detail on this one
Montana conforms; its 2025 forms allow the tips and overtime deductions.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Montana
For tax year 2025: Yes
Montana follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income Montana taxes, not just federal income.
For tax year 2026: Yes
Montana follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income Montana taxes, not just federal income.
The detail on this one
Montana conforms; its 2025 forms allow the tips and overtime deductions.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Nebraska
The new federal break on tips in Nebraska
For tax year 2025: No
As of mid-2026, Nebraska has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Nebraska still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Nebraska has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Nebraska still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Nebraska has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Nebraska
For tax year 2025: No
As of mid-2026, Nebraska has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Nebraska still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Nebraska has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Nebraska still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Nebraska has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Nevada
The new federal break on tips in Nevada
For tax year 2025: No state income tax
Nevada has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Nevada has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Nevada
For tax year 2025: No state income tax
Nevada has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Nevada has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
New Hampshire
The new federal break on tips in New Hampshire
For tax year 2025: No state income tax
New Hampshire has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
New Hampshire has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in New Hampshire
For tax year 2025: No state income tax
New Hampshire has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
New Hampshire has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
New Jersey
The new federal break on tips in New Jersey
For tax year 2025: No
As of mid-2026, New Jersey has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and New Jersey still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, New Jersey has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and New Jersey still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
New Jersey has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in New Jersey
For tax year 2025: No
As of mid-2026, New Jersey has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and New Jersey still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, New Jersey has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and New Jersey still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
New Jersey has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
New Mexico
The new federal break on tips in New Mexico
For tax year 2025: No
As of mid-2026, New Mexico has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and New Mexico still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, New Mexico has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and New Mexico still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
New Mexico has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in New Mexico
For tax year 2025: No
As of mid-2026, New Mexico has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and New Mexico still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, New Mexico has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and New Mexico still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
New Mexico has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
New York
The new federal break on tips in New York
For tax year 2025: No
For tax year 2026: Yes
The detail on this one
New York adopted its own 'no tax on tips' break in the FY2027 budget (signed May 28, 2026): up to $25,000 of tipped income is excluded from New York State income tax for tax years beginning in and after 2026, mirroring the federal rule. Overtime was NOT included — the federal overtime deduction reduces your federal tax only, and 2025 tips got no state relief.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in New York
For tax year 2025: No
For tax year 2026: No
The detail on this one
New York adopted its own 'no tax on tips' break in the FY2027 budget (signed May 28, 2026): up to $25,000 of tipped income is excluded from New York State income tax for tax years beginning in and after 2026, mirroring the federal rule. Overtime was NOT included — the federal overtime deduction reduces your federal tax only, and 2025 tips got no state relief.
Applies to tax year 2026.
We last checked this on 7 July 2026.
North Carolina
The new federal break on tips in North Carolina
For tax year 2025: No
As of mid-2026, North Carolina has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and North Carolina still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, North Carolina has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and North Carolina still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
North Carolina has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in North Carolina
For tax year 2025: No
As of mid-2026, North Carolina has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and North Carolina still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, North Carolina has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and North Carolina still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
North Carolina has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
North Dakota
The new federal break on tips in North Dakota
For tax year 2025: Yes
North Dakota follows the new federal break on tips. Where the federal deduction applies, it also reduces the income North Dakota taxes, not just federal income.
For tax year 2026: Yes
North Dakota follows the new federal break on tips. Where the federal deduction applies, it also reduces the income North Dakota taxes, not just federal income.
The detail on this one
North Dakota is a rolling-conformity state that starts from federal taxable income, so it automatically incorporates the federal overtime and tips deductions for tax years 2025–2028. No decoupling legislation has been enacted.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in North Dakota
For tax year 2025: Yes
North Dakota follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income North Dakota taxes, not just federal income.
For tax year 2026: Yes
North Dakota follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income North Dakota taxes, not just federal income.
The detail on this one
North Dakota is a rolling-conformity state that starts from federal taxable income, so it automatically incorporates the federal overtime and tips deductions for tax years 2025–2028. No decoupling legislation has been enacted.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Ohio
The new federal break on tips in Ohio
For tax year 2025: No
As of mid-2026, Ohio has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Ohio still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Ohio has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Ohio still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Ohio has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Ohio
For tax year 2025: No
As of mid-2026, Ohio has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Ohio still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Ohio has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Ohio still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Ohio has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Oklahoma
The new federal break on tips in Oklahoma
For tax year 2025: No
As of mid-2026, Oklahoma has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Oklahoma still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Oklahoma has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Oklahoma still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Oklahoma has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Oklahoma
For tax year 2025: No
As of mid-2026, Oklahoma has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Oklahoma still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Oklahoma has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Oklahoma still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Oklahoma has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Oregon
The new federal break on tips in Oregon
For tax year 2025: Yes
Oregon follows the new federal break on tips. Where the federal deduction applies, it also reduces the income Oregon taxes, not just federal income.
For tax year 2026: Yes
Oregon follows the new federal break on tips. Where the federal deduction applies, it also reduces the income Oregon taxes, not just federal income.
The detail on this one
Oregon conforms (rolling conformity); the deductions flow through to the state return.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Oregon
For tax year 2025: Yes
Oregon follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income Oregon taxes, not just federal income.
For tax year 2026: Yes
Oregon follows the new federal break on overtime. Where the federal deduction applies, it also reduces the income Oregon taxes, not just federal income.
The detail on this one
Oregon conforms (rolling conformity); the deductions flow through to the state return.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Pennsylvania
The new federal break on tips in Pennsylvania
For tax year 2025: No
As of mid-2026, Pennsylvania has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Pennsylvania still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Pennsylvania has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Pennsylvania still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Pennsylvania has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Pennsylvania
For tax year 2025: No
As of mid-2026, Pennsylvania has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Pennsylvania still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Pennsylvania has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Pennsylvania still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Pennsylvania has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Rhode Island
The new federal break on tips in Rhode Island
For tax year 2025: No
As of mid-2026, Rhode Island has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Rhode Island still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Rhode Island has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Rhode Island still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Rhode Island has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Rhode Island
For tax year 2025: No
As of mid-2026, Rhode Island has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Rhode Island still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Rhode Island has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Rhode Island still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Rhode Island has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
South Carolina
The new federal break on tips in South Carolina
For tax year 2025: No
As of mid-2026, South Carolina has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and South Carolina still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, South Carolina has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and South Carolina still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
South Carolina's IRC conformity date (December 31, 2024) pre-dates the federal OBBBA, and the 2026 conformity bill (H3368) was not enacted, so the tips (§224) and overtime (§225) deductions must be added back on the South Carolina return — they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in South Carolina
For tax year 2025: No
As of mid-2026, South Carolina has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and South Carolina still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, South Carolina has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and South Carolina still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
South Carolina's IRC conformity date (December 31, 2024) pre-dates the federal OBBBA, and the 2026 conformity bill (H3368) was not enacted, so the tips (§224) and overtime (§225) deductions must be added back on the South Carolina return — they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
South Dakota
The new federal break on tips in South Dakota
For tax year 2025: No state income tax
South Dakota has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
South Dakota has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in South Dakota
For tax year 2025: No state income tax
South Dakota has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
South Dakota has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Tennessee
The new federal break on tips in Tennessee
For tax year 2025: No state income tax
Tennessee has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Tennessee has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Tennessee
For tax year 2025: No state income tax
Tennessee has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Tennessee has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Texas
The new federal break on tips in Texas
For tax year 2025: No state income tax
Texas has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Texas has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Texas
For tax year 2025: No state income tax
Texas has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Texas has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Utah
The new federal break on tips in Utah
For tax year 2025: No
As of mid-2026, Utah has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Utah still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Utah has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Utah still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Utah does not allow these federal deductions to reduce your Utah state tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Utah
For tax year 2025: No
As of mid-2026, Utah has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Utah still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Utah has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Utah still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Utah does not allow these federal deductions to reduce your Utah state tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Vermont
The new federal break on tips in Vermont
For tax year 2025: No
As of mid-2026, Vermont has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Vermont still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Vermont has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Vermont still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Vermont has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Vermont
For tax year 2025: No
As of mid-2026, Vermont has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Vermont still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Vermont has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Vermont still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Vermont has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Virginia
The new federal break on tips in Virginia
For tax year 2025: No
As of mid-2026, Virginia has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Virginia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Virginia has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Virginia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Virginia has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Virginia
For tax year 2025: No
As of mid-2026, Virginia has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Virginia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Virginia has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Virginia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Virginia has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Washington
The new federal break on tips in Washington
For tax year 2025: No state income tax
Washington has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Washington has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Washington
For tax year 2025: No state income tax
Washington has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Washington has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
West Virginia
The new federal break on tips in West Virginia
For tax year 2025: No
As of mid-2026, West Virginia has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and West Virginia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, West Virginia has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and West Virginia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
West Virginia has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in West Virginia
For tax year 2025: No
As of mid-2026, West Virginia has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and West Virginia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, West Virginia has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and West Virginia still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
West Virginia has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Wisconsin
The new federal break on tips in Wisconsin
For tax year 2025: No
As of mid-2026, Wisconsin has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Wisconsin still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Wisconsin has not adopted the new federal break on tips. On what we checked, the deduction lowers your federal tax only and Wisconsin still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Wisconsin has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Wisconsin
For tax year 2025: No
As of mid-2026, Wisconsin has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Wisconsin still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
For tax year 2026: No
As of mid-2026, Wisconsin has not adopted the new federal break on overtime. On what we checked, the deduction lowers your federal tax only and Wisconsin still counts that pay as taxable income on the state return. States change this, so check the source below before you file.
The detail on this one
Wisconsin has not adopted the federal tips/overtime deductions for state income tax as of mid-2026, so they reduce your federal tax only.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Wyoming
The new federal break on tips in Wyoming
For tax year 2025: No state income tax
Wyoming has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Wyoming has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The new federal break on overtime in Wyoming
For tax year 2025: No state income tax
Wyoming has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
For tax year 2026: No state income tax
Wyoming has no state income tax on wages, so there is no state return for this deduction to appear on. It only affects federal income tax.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The federal deduction for tips
The 2025 law created a federal deduction for tips for tax years 2025 through 2028. You can claim it even if you do not add up your deductions one by one.
- Most you can deduct: $25,000. This is one limit per tax return. It is not doubled if you are married and file together.
- You get the full amount if you make up to: $150,000 on your own, or $300,000 if you are married and file together.
- Above that it shrinks: you lose $100 of the break for every $1,000 you make over the line.
- It is gone completely at: $400,000 on your own, or $550,000 married filing together.
- You need a Social Security number on the return.
Not every job that gets tips counts. The government publishes a list of jobs that do, and yours has to be on it. See the published list.
If you work for yourself, this break cannot be bigger than the profit your business made. Some kinds of business cannot claim it at all, including health, law, accounting, consulting and financial services.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The band you picked crosses the point where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: This limit is already shrinking across the band you picked, and it is gone above $400,000. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The band you picked crosses the point where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: This limit is already shrinking across the band you picked, and it is gone above $400,000. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($300,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($300,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($300,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($300,000). Income is only one of this rule's conditions.
Where you are: The band you picked spans both the point where this limit starts to shrink ($300,000) and the point where it is gone ($550,000). The calculator will tell you either way. Income is only one of this rule's conditions.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The federal deduction for overtime
Only the extra part counts, not the whole overtime payment. If you normally get $20 an hour and overtime pays $30, only the extra $10 an hour counts here.
Overtime you are owed only because of a contract, a union agreement or a state law does not count. It has to be overtime the federal wage law requires.
- Most you can deduct: $12,500 on your own, $25,000 married filing together.
- You get the full amount if you make up to: $150,000 on your own, or $300,000 married filing together.
- Above that it shrinks by $100 for every $1,000 you make over the line.
- It is gone completely at $275,000 on your own, or $550,000 married filing together.
- You need a Social Security number on the return.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The band you picked spans both the point where this limit starts to shrink ($150,000) and the point where it is gone ($275,000). The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: This limit is fully phased out above $275,000, which is below the band you picked, so it may not reach you. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The band you picked spans both the point where this limit starts to shrink ($150,000) and the point where it is gone ($275,000). The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: This limit is fully phased out above $275,000, which is below the band you picked, so it may not reach you. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($300,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($300,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($300,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($300,000). Income is only one of this rule's conditions.
Where you are: The band you picked spans both the point where this limit starts to shrink ($300,000) and the point where it is gone ($550,000). The calculator will tell you either way. Income is only one of this rule's conditions.
Applies to tax year 2026.
We last checked this on 7 July 2026.
If you are married
If you are married, you only get these two breaks, and the $6,000 senior deduction, when you and your husband or wife put your income on one joint tax return together. If you each file your own separate return, neither of you gets them. This is not us telling you how to file, it is just how these two breaks work. Car loan interest is the exception: it still works on a separate return.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The federal deduction for people 65 and older
$6,000 for each person who is 65 or older, for tax years 2025 through 2028. It shrinks by 6% of everything you make over $75,000 on your own, or $150,000 married filing together.
Gone at $175,000 on your own, or $250,000 married filing together.
This comes off after your income total is worked out, so it does not change that total, and it does not change how much of your Social Security gets taxed. It does not rise with inflation.
Where you are: The income band you picked sits below where this limit starts to shrink ($75,000). Income is only one of this rule's conditions.
Where you are: The band you picked crosses the point where this limit starts to shrink ($75,000). Income is only one of this rule's conditions.
Where you are: This limit is already shrinking across the whole band you picked. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: This limit is already shrinking across the band you picked, and it is gone above $175,000. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: This limit is fully phased out above $175,000, which is below the band you picked, so it may not reach you. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($75,000). Income is only one of this rule's conditions.
Where you are: The band you picked crosses the point where this limit starts to shrink ($75,000). Income is only one of this rule's conditions.
Where you are: This limit is already shrinking across the whole band you picked. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: This limit is already shrinking across the band you picked, and it is gone above $175,000. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: This limit is fully phased out above $175,000, which is below the band you picked, so it may not reach you. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($150,000). Income is only one of this rule's conditions.
Where you are: The band you picked spans both the point where this limit starts to shrink ($150,000) and the point where it is gone ($250,000). The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: This limit is fully phased out above $250,000, which is below the band you picked, so it may not reach you. The calculator will tell you either way. Income is only one of this rule's conditions.
Applies to tax year 2026.
We last checked this on 7 July 2026.
The extra standard deduction at 65
Separate from the $6,000 above, and not the same thing. For 2026 it adds $2,050 if you file on your own, as head of household, separately, or as a qualifying surviving spouse, and $1,650 for each qualifying spouse on a joint return. Do not count it twice with the $6,000.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Giving straight from an IRA
This one starts at 70 and a half, not 65, and it only works from certain accounts.
You have to have reached 70 and a half. It works from a traditional IRA, and from a SEP or SIMPLE IRA that is no longer being paid into. It does not work from a 401(k), a 403(b) or a 457.
The money has to go straight from the account to the charity, and the whole gift has to be one you could have deducted in full. Donor-advised funds and private foundations do not count.
Limit for 2026: $111,000 per person. It is left out of your income, so it does lower your income total.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Interest on a new car loan
New vehicle, first owner. Final assembly in the United States. Loan taken after 31 December 2024, secured by a first lien on the vehicle, not a lease, not from a relative. Personal use, under 14,000 lbs. The VIN goes on the return.
$10,000 of interest per tax return, not per vehicle. Full amount up to $100,000 on your own, or $200,000 married filing together. It shrinks by $200 for every $1,000 over that, and is gone at $150,000 or $250,000. It works on a separate return.
This comes off after your income total is worked out, so it does not change that total.
Where you are: The income band you picked sits below where this limit starts to shrink ($100,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($100,000). Income is only one of this rule's conditions.
Where you are: The band you picked crosses the point where this limit starts to shrink ($100,000). Income is only one of this rule's conditions.
Where you are: This limit is fully phased out above $150,000, which is below the band you picked, so it may not reach you. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: This limit is fully phased out above $150,000, which is below the band you picked, so it may not reach you. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($100,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($100,000). Income is only one of this rule's conditions.
Where you are: The band you picked crosses the point where this limit starts to shrink ($100,000). Income is only one of this rule's conditions.
Where you are: This limit is fully phased out above $150,000, which is below the band you picked, so it may not reach you. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: This limit is fully phased out above $150,000, which is below the band you picked, so it may not reach you. The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($200,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($200,000). Income is only one of this rule's conditions.
Where you are: The income band you picked sits below where this limit starts to shrink ($200,000). Income is only one of this rule's conditions.
Where you are: The band you picked spans both the point where this limit starts to shrink ($200,000) and the point where it is gone ($250,000). The calculator will tell you either way. Income is only one of this rule's conditions.
Where you are: This limit is fully phased out above $250,000, which is below the band you picked, so it may not reach you. The calculator will tell you either way. Income is only one of this rule's conditions.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Giving to charity when you take the standard deduction
From 2026 there is a deduction for cash gifts to charity for people who take the standard deduction. Up to $1,000, or $2,000 if you are married and file together.
Cash only, and only to a public charity. Donor-advised funds, private foundations and supporting organisations do not count. Nothing left over carries into next year. This one is permanent and does not rise with inflation.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Giving to charity when you add up your deductions
If you do add up your deductions, from 2026 the first half a percent of your income worth of giving does not count.
Applies to tax year 2026.
We last checked this on 7 July 2026.
State and local taxes you paid only if you add up your deductions
Cap for 2026: $40,400. It comes down by 30% of everything you make over $505,000, but never below $10,000. Half of that if you are married and file separately.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Mortgage insurance only if you add up your deductions and you pay PMI, FHA MIP, a VA funding fee or a USDA fee
Back from 2026 and permanent. It comes down 10% for each $1,000 you make over $100,000, and is gone above $109,000. If you paid a lump sum up front, it is spread over the shorter of the loan term or 84 months.
If you are married and file separately, those figures halve: it comes down for each $500 you make over $50,000, and is gone above $54,500.
Applies to tax year 2026.
We last checked this on 7 July 2026.
Things we do not work out for you (0123456789101112)
These are listed in no order of importance. Every one of them is the same kind of gap, and none of them is smaller than the others.
Local income tax in Alabama
Several Alabama municipalities levy a local 'occupational tax' withheld from wages of anyone working in the city (resident or not): Birmingham 1.0%, Bessemer 1.0%, Gadsden 2.0%, plus others (e.g., Macon County). It applies to earned wages only — not dividends, rent or capital gains — and the employer withholds and remits it.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Programs Alaska documents as employee-paid that our estimate does not subtract
- State Unemployment Insurance (SUI) — employee share: 0.50%, $54,200 taxable wage base (2026); max employee contribution ~$271/yr. source
Our paycheck calculator does not subtract these, so the take-home pay it shows you is bigger than the amount that will actually land in your account.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Connecticut has no state standard deduction in our data
We hold no state standard deduction for Connecticut, so the state tax we show is smaller than what you will actually pay.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Local income tax in Delaware
Only the City of Wilmington levies a local earned-income (wage) tax: a flat 1.25% on all wages, applied to BOTH Wilmington residents and non-residents who work inside city limits. No other Delaware city or county has a local income tax.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Programs Delaware documents as employee-paid that our estimate does not subtract
- Delaware Paid Leave (PFML) — employee share: Up to 0.4% of wages (employee may be required to pay up to 50% of the 0.8% total premium), $184,500 (Social Security wage cap); max employee cost ~$738/yr. source
Our paycheck calculator does not subtract these, so the take-home pay it shows you is bigger than the amount that will actually land in your account.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Local income tax in Indiana
All 92 Indiana counties levy a local income tax (LIT), withheld by employers based on the employee's COUNTY OF RESIDENCE (not work county) as of Jan 1. 2026 county rates range roughly from 0.5% to 3.0%+. Six counties raised rates effective Jan 1, 2026. Marion (Indianapolis) ~2.02%, Hamilton ~1.1%, Allen ~1.59%. Official rates are in DOR Departmental Notice #1.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Local income tax in Iowa
Iowa school districts levy a local income surtax assessed as a percentage of state income tax liability (up to 20%), not of income. About 87% of districts impose it; the income-weighted average is roughly 0.3%. Three counties (Appanoose, Pocahontas, Winnebago) also use a surtax for EMS. It is filed with the state IA 1040 return based on the district you reside in on the last day of the tax year.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Local income tax in Kentucky
Kentucky cities AND counties may each levy a local 'occupational license fee' (a wage tax on gross earnings) and the two can STACK. 87 of 120 counties levied it; rates run roughly 0.5%-2.5%. Louisville/Jefferson County: 2.2% for residents (1.25% Louisville Metro + 0.2% TARC + 0.75% school board); nonresidents pay 1.45% (exempt from the 0.75% school-board portion). Lexington-Fayette: 2.25%. Withheld by employers where work is performed.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Local income tax in Maryland
All 23 Maryland counties plus Baltimore City levy a local 'piggyback' income tax, deducted via withholding and paid with the state return. The maximum local rate for 2026 is 3.30% (the cap rose from 3.20% for tax years after 2024). Rates range from 2.25% (Worcester, the lowest) up to 3.30%; most large counties - Howard, Montgomery, Prince George's and Baltimore City - are at 3.20%, while only Dorchester and Kent are at the 3.30% cap. Anne Arundel and Frederick counties use income-tiered rates.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Local income tax in Michigan
24 Michigan cities levy a local income tax under the Uniform City Income Tax Ordinance (Act 284 of 1964). Detroit is highest at 2.4% residents / 1.2% nonresidents; Grand Rapids and Saginaw at 1.5% / 0.75%; Highland Park at 2.0% / 1.0%; the remaining ~20 cities (e.g., Lansing, Flint, Pontiac, Battle Creek, Walker, Hamtramck) at 1.0% / 0.5%. Nonresidents are taxed only on income earned within city limits.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Programs Minnesota documents as employee-paid that our estimate does not subtract
- Paid Leave (PFML) — employee share: 0.44% (employer may deduct up to half of the 0.88% total premium), Capped at the 2026 Social Security wage base, $184,500. source
Our paycheck calculator does not subtract these, so the take-home pay it shows you is bigger than the amount that will actually land in your account.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Local income tax in Missouri
Only Kansas City and St. Louis City levy a 1% local earnings tax; Missouri law bars any other municipality from imposing a local income tax. Residents of those cities pay 1% on all earnings; non-residents pay 1% on income earned within city limits.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Local income tax in New Jersey
New Jersey has no general local income tax, but Newark levies a 1% payroll tax that is employer-paid (not deducted from employee paychecks). For employees, only state income tax and state payroll deductions apply.
New Jersey's only local wage levy is paid by the employer, not taken out of your pay.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Programs New Jersey documents as employee-paid that our estimate does not subtract
- Unemployment Insurance (UI) - employee share: 0.3825%, $44,800. source
- Workforce Development/Supplemental Workforce Funds (WF/SWF) - employee share: 0.0425%, $44,800. source
Our paycheck calculator does not subtract these, so the take-home pay it shows you is bigger than the amount that will actually land in your account.
Applies to tax year 2026.
We last checked this on 26 June 2026.
New Jersey has no state standard deduction in our data
We hold no state standard deduction for New Jersey, so the state tax we show is smaller than what you will actually pay.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Money you put into a retirement plan in New Jersey
New Jersey taxes money you put into a retirement plan, and our estimate treats it the federal way, so the state tax we show is smaller than what you will actually pay.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Local income tax in New York
New York City levies a resident income tax (2026 withholding brackets ~3.078%–3.876%) on NYC residents only. Yonkers adds a resident surcharge — 2026 resident withholding rate 1.95975% — plus a 0.50% nonresident earnings tax on income earned in Yonkers. No other NY localities levy a wage income tax.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Local income tax in Ohio
Ohio has extensive municipal income taxes: most cities levy 1.8%-2.75% (Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%, Toledo 2.25%, Akron 2.5%, Dayton 2.5%), collected mostly by RITA or the CCA rather than the state. Many school districts also levy a separate school district income tax. Credits typically apply between work-city and home-city taxes.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Ohio has no state standard deduction in our data
We hold no state standard deduction for Ohio, so the state tax we show is smaller than what you will actually pay.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Local income tax in Oregon
Portland metro area levies multiple local personal income taxes administered by the City of Portland Revenue Division: Metro Supportive Housing Services (SHS) tax of 1% on income above $128,000 single / $205,000 joint (2026, first inflation-adjusted year), and Multnomah County Preschool for All (PFA) tax of 1.5% above $125,000 single / $200,000 joint, plus an extra 1.5% above $250,000 single / $400,000 joint. No statewide local income tax outside the Portland metro.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Local income tax in Pennsylvania
Nearly every PA municipality and school district levies a local Earned Income Tax (EIT) under Act 32, typically 1% combined in suburbs (split municipality/school district). Philadelphia imposes a separate Wage Tax (not EIT): 3.74% residents / 3.43% nonresidents through June 30, 2026, then 3.735% residents / 3.425% nonresidents effective July 1, 2026 (the first step of a five-year cut plan trending toward ~3.70%/3.39%). There is also a per-job Local Services Tax (LST), commonly $52/yr. EIT rates range roughly 0% to ~3.84% statewide; DCED maintains the official rate register.
Our calculators do not include local income tax. If the place you live or work levies one, the take-home pay our calculators show you is bigger than the amount that will actually land in your account.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Programs Pennsylvania documents as employee-paid that our estimate does not subtract
- Unemployment Compensation (employee withholding): 0.07%, No wage cap — applies to all gross wages (70 cents per $1,000). source
Our paycheck calculator does not subtract these, so the take-home pay it shows you is bigger than the amount that will actually land in your account.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Money you put into a retirement plan in Pennsylvania
Pennsylvania taxes money you put into a retirement plan, and our estimate treats it the federal way, so the state tax we show is smaller than what you will actually pay.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Programs Washington documents as employee-paid that our estimate does not subtract
- WA Cares Fund (long-term care) — fully employee-paid: 0.58% of gross wages, No wage cap (applies to all wages). source
Our paycheck calculator does not subtract these, so the take-home pay it shows you is bigger than the amount that will actually land in your account.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Local income tax in West Virginia
West Virginia has no percentage-based local income tax, but several municipalities impose a flat per-worker 'City Service Fee' on anyone employed within city limits. Charleston charges $3.00/week ($6.00 per bi-weekly pay period); similar weekly fees apply in Huntington, Parkersburg, Morgantown ('Safe Streets' fee), Weirton and other cities. It is a fixed dollar fee, not a tax on income.
The local charge West Virginia documents is a flat fee, not a percentage, and we do not include it.
We cannot resolve this without knowing your city or county.
Applies to tax year 2026.
We last checked this on 26 June 2026.
Wisconsin has no state standard deduction in our data
We hold no state standard deduction for Wisconsin, so the state tax we show is smaller than what you will actually pay.
Applies to tax year 2026.
We last checked this on 16 June 2026.
You moved this year
Everything above assumes a full year in one state. We do not split a year between two states.
Other things we leave out (0123456)
California figures are on 2025 tables
We show California's official 2025 tax figures because 2026 figures were not published when we checked.
California's extra 1% on income over $1,000,000 is not included.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Bonuses inside New York City and Yonkers
New York City adds a 4.25% supplemental rate and Yonkers adds 1.61135% (resident) / 0.5% (non-resident) on top of the 11.7% state rate. Those local rates are not included in the headline figure.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Oklahoma figures are on 2025 tables
We show Oklahoma's official 2025 tax figures because 2026 figures were not published when we checked.
Applies to tax year 2026.
We last checked this on 16 June 2026.
Retirement income
Many states leave pension and retirement income out of state tax. We do not include any of that.
What this does not cover
- We do not include state credits or personal exemptions.
- We do not include how a state treats retirement, pension or Social Security income.
- Our state data covers tips and overtime only. Do not assume a state treats the senior, SALT, car loan, charity or mortgage insurance rules the same way. We have no data on that.
- If you lived in the state for only part of the year, or you pay tax there without living there, our numbers do not fit your situation.
- Our state data stops at 2026, so 2027 and 2028 are not covered.
- Figures are as of the date each file was checked, not as of today. Our payroll and local tax figures were checked on 26 June 2026, and our state tips and overtime figures on 7 July 2026. Some states change rates part way through a year.
- This is general information, not tax advice. If you are unsure, check with a tax preparer or your state revenue department.
Where the federal figures come from
- IRS: deductions for working Americans and seniors
- Treasury and IRS: final regulations on tipped occupations
- IRS: questions and answers on the overtime deduction
- Public Law 119-21, the statute itself
- Public Law 119-21 as enrolled, SALT
- Car loan interest deduction
- Charitable deduction changes
- Qualified charitable distributions
Every state figure on this page links its own source on the card it appears in.
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