State Income Tax Changes — 2026
27 jurisdictions changed their individual income tax for 2026: 31 cut rates, 5 raised them, and 5 restructured. Every entry below is confirmed against the state's own revenue department, statute or enacted bill — never a news report alone.
What the changes are actually worth
Change in state income tax owed by a single filer on $100,000, 2025 compared with 2026. Only states where we hold verified data for both years appear here.
| State | 2025 tax | 2026 tax | Change |
|---|---|---|---|
| South Carolina | $5,358 | $4,244 | −$1,114 |
| Kentucky | $3,869 | $3,382 | −$487 |
| Nebraska | $4,104 | $3,670 | −$433 |
| Montana | $4,718 | $4,289 | −$428 |
| Mississippi | $3,595 | $3,268 | −$327 |
| Georgia | $4,567 | $4,242 | −$326 |
| Hawaii | $6,070 | $5,796 | −$274 |
| Oklahoma | $4,212 | $3,955 | −$258 |
| North Carolina | $3,708 | $3,481 | −$227 |
| West Virginia | $3,885 | $3,691 | −$194 |
| Arkansas | $3,355 | $3,212 | −$142 |
| New York | $4,952 | $4,860 | −$92 |
| Maine | $5,201 | $5,129 | −$72 |
| Vermont | $4,140 | $4,076 | −$64 |
| Utah | $4,500 | $4,450 | −$50 |
| Indiana | $2,970 | $2,921 | −$50 |
| Minnesota | $5,311 | $5,277 | −$35 |
| Missouri | $3,784 | $3,763 | −$21 |
| Idaho | $4,465 | $4,447 | −$19 |
| Colorado | $3,707 | $3,692 | −$15 |
| Louisiana | $2,625 | $2,614 | −$11 |
| Michigan | $4,004 | $3,999 | −$4 |
| Ohio | $2,310 | $2,313 | +$4 |
Every verified 2026 change
Alabama replaced its lapsed overtime exemption with a narrower deduction for calendar years 2026 through 2028, allowing itemizers and non-itemizers alike to deduct the premium portion of overtime wages up to $1,000 per year.
No Alabama deduction or exemption for overtime wages after June 30, 2025 → Deduction for the overtime premium portion, capped at $1,000 per taxpayer per year, for 2026-2028
Alabama Department of Revenue — Overtime Premium Deduction (Act 2026-604)
- ArkansasCutrateEffective January 1, 2026 · Act 2 of 2026 (S.B. 1, First Extraordinary Session 2026), amending Ark. Code § 26-51-201
Arkansas cut its top individual income tax rate from 3.9% to 3.7% for tax years beginning on or after January 1, 2026, in a May 2026 special session.
3.9% top rate → 3.7% top rate
Arkansas General Assembly — Senate Bill 1, First Extraordinary Session of 2026 (enrolled bill text)
- ColoradoIncreasedeductionEffective January 1, 2026 · H.B. 25-1296 (2025), ch. 202, Session Laws of Colorado 2025
Colorado decoupled from the new federal deduction for overtime compensation, requiring taxpayers to add back to Colorado taxable income any overtime pay excluded or deducted from federal gross income, for income tax years beginning on or after January 1, 2026.
No Colorado addback of federally excluded or deducted overtime compensation → Federally excluded or deducted overtime compensation added back to Colorado taxable income
Colorado General Assembly — HB25-1296 Session Law, Chapter 202, Taxation
- ConnecticutCutcreditEffective January 1, 2026 · 2025 Connecticut legislative session (Department of Revenue Services legislative overview)
Connecticut created a $500 per-home personal income tax credit for owners of a licensed family child care home, applicable to taxable years beginning on or after January 1, 2026.
No such credit → $500 per family child care home
Connecticut Department of Revenue Services — 2025 Legislative Overview - Income Tax
- ConnecticutCutcreditEffective January 1, 2026 · 2025 Connecticut legislative session (Department of Revenue Services legislative overview)
Connecticut created a farm investment tax credit equal to 20% of amounts paid for eligible farm machinery, equipment and buildings, claimable by an eligible farmer against the personal income tax, for taxable years beginning on or after January 1, 2026.
No such credit → 20% of qualifying farm investment property expenditures
Connecticut Department of Revenue Services — 2025 Legislative Overview - Income Tax
Georgia raised the individual standard deduction for tax year 2026 from $12,000 to $15,000 for single filers, heads of household and married filing separately and from $24,000 to $30,000 for married filing jointly, and raised the dependent deduction from $4,000 to $5,000.
$12,000 single/HOH/MFS; $24,000 MFJ standard deduction; $4,000 dependent deduction → $15,000 single/HOH/MFS; $30,000 MFJ standard deduction; $5,000 dependent deduction
Georgia's flat individual income tax rate was cut from 5.19% to 4.99% for taxable years beginning on or after January 1, 2026, with 0.125-point annual reductions scheduled from 2027 toward a 3.99% floor.
5.19% flat → 4.99% flat
Hawaii's standard deduction nearly doubles for tax year 2026, rising from $4,400 to $8,000 for single and married filing separately filers, from $8,800 to $16,000 for joint filers and surviving spouses, and from $6,424 to $12,000 for heads of household.
$4,400 single/MFS; $8,800 joint/QSS; $6,424 head of household → $8,000 single/MFS; $16,000 joint/QSS; $12,000 head of household
Idaho's $205-per-child nonrefundable child tax credit sunset after tax year 2025 under its own statutory expiration and is unavailable for tax year 2026; a 2026 bill to make it permanent did not pass.
$205 nonrefundable credit per qualifying child → Credit no longer available
Idaho State Tax Commission — Withholding Tables Updated for 2026
- IndianaCutdeductionEffective January 1, 2026 · Senate Enrolled Act 243 (2026), Secs. 11-13; IC 6-3-2-31, -32, -33
Indiana created three deductions for tax year 2026 only, mirroring the new federal deductions for qualified tips, qualified overtime compensation, and qualified passenger vehicle loan interest.
No Indiana deduction for tips, overtime, or vehicle loan interest → Tax year 2026 only: Indiana deductions equal to the federal IRC 224, IRC 225 and IRC 163(h)(4) amounts
Indiana's flat individual adjusted gross income tax rate falls from 3.00% to 2.95% for tax year 2026, with a further cut to 2.90% legislated for 2027.
3.00% flat (2025) → 2.95% flat
Kansas created a nonrefundable income tax credit for tax years 2026 through 2028 equal to 25% of a resident's spending on lockable gun and ammunition storage, capped at $250 per year.
No such credit → 25% of qualifying storage expenditures, up to $250 per year, for 2026-2028
Kansas Department of Revenue — Notice 26-06, Income Tax Credit for Gun and Ammunition Storage
- KentuckyCutrateEffective January 1, 2026 · H.B. 1 (2025 Regular Session), 2025 Ky. Acts ch. 1, amending KRS 141.020
Kentucky's flat individual income tax rate falls from 4% to 3.5% for taxable years beginning on or after January 1, 2026.
4% flat → 3.5% flat
Kentucky Legislature — KRS 141.020 - Levy of income tax on individuals
Louisiana authorized a new deduction for hardship distributions from retirement accounts taken because the taxpayer or the taxpayer's spouse has been diagnosed with a terminal illness, beginning in tax year 2026.
No deduction for hardship retirement distributions → Deduction for qualifying terminal-illness hardship distributions
Louisiana Department of Revenue — 2025 Regular Session Legislative Summaries
Louisiana created a new individual income tax exclusion, effective for tax years beginning on or after January 1, 2026, for deposits into ABLE accounts of up to $2,400 per beneficiary on a single return and $4,800 per beneficiary on a joint return.
No exclusion for ABLE account deposits → Exclusion of up to $2,400 (single) or $4,800 (joint) per beneficiary per year
Louisiana Department of Revenue — 2025 Regular Session Legislative Summaries
- MaineCutcreditEffective January 1, 2026 · L.D. 2212; P.L. 2025, ch. 650, Pt. CCCC; 36 M.R.S. § 5219-KK(2-D)
Maine raised the maximum refundable Property Tax Fairness Credit for filers under age 65 from $1,000 to $1,500 for tax year 2026; the $2,000 maximum for filers aged 65 and over is unchanged.
$1,000 maximum for filers under 65 → $1,500 maximum for filers under 65 ($2,000 for 65+, unchanged)
Maine Revenue Services — 2026 Session Legislation Enacted (Legislative Change Summary)
- MaineIncreaserateEffective January 1, 2026 · L.D. 2212; P.L. 2025, ch. 650, Pt. DDDD; 36 M.R.S. §§ 5111(7), 5160, 5403(12)
Maine added a 2% income tax surcharge for tax year 2026 on Maine taxable income above $1,000,000 for single filers, $750,000 for married filing separately, and $1,500,000 for joint filers, heads of household and surviving spouses, on top of the existing 5.8%/6.75%/7.15% schedule.
No surcharge; top marginal rate 7.15% → 7.15% plus a 2% surcharge above $1,000,000 single / $750,000 MFS / $1,500,000 joint
Maine Revenue Services — 2026 Session Legislation Enacted (Legislative Change Summary)
- MichiganCutdeductionEffective January 1, 2026 · H.B. 4961 (2025), Public Act 24 of 2025, amending MCL 206.30(1)(ee)
Michigan created state income tax deductions mirroring the new federal deductions for qualified tips and qualified overtime compensation, available for tax years 2026 through 2028 only.
No Michigan deduction for tip income or overtime pay → Deductions equal to the federal IRC 224 qualified tips and IRC 225 qualified overtime amounts, for 2026-2028
Michigan Legislature — Public Act 24 of 2025 (H.B. 4961), Income Tax Act amendment
- MichiganCutdeductionEffective January 1, 2026 · H.B. 4961 (2025), Public Act 24 of 2025, amending MCL 206.30(9)(e)
For tax years 2026 through 2028 Michigan taxpayers aged 67 and over who elect the unrestricted $20,000 (single) or $40,000 (joint) retirement deduction give up only the personal exemption, and may still deduct Social Security income separately.
Electing the $20,000/$40,000 unrestricted deduction meant forgoing both the Social Security deduction and the personal exemption → For 2026-2028, electing filers forgo only the personal exemption
Michigan Legislature — Public Act 24 of 2025 (H.B. 4961), Income Tax Act amendment
- MinnesotaStructuralcreditEffective January 1, 2026 · Minn. Laws 2026, ch. 128 (H.F. 2438), art. 1 § 26, amending Minn. Stat. § 290.067
Minnesota decoupled its Child and Dependent Care Credit from IRC section 21 for tax years beginning after December 31, 2025, writing its own credit percentage schedule that starts at 35% and steps down to a 20% floor as income rises.
State credit computed by reference to the federal dependent care credit → Independent Minnesota schedule, 35% stepping down to a 20% floor
Minnesota Office of the Revisor of Statutes — Minnesota Laws 2026, Chapter 128
- MinnesotaIncreasedeductionEffective January 1, 2026 · Minn. Laws 2026, ch. 128 (H.F. 2438), art. 1 § 4, amending Minn. Stat. § 290.0122, subd. 4
Minnesota imposed a state-specific floor on the itemized charitable contribution deduction for tax years beginning after December 31, 2025, allowing only contributions above 1% of the taxpayer's contribution base.
No Minnesota-specific floor on the charitable contribution deduction → Deduction limited to contributions exceeding 1% of the contribution base
Minnesota Office of the Revisor of Statutes — Minnesota Laws 2026, Chapter 128
- MissouriCutcapital_gainsEffective January 1, 2026 · H.B. 754 (2026 Regular Session), § 143.121, RSMo
Missouri allows capital gain on the sale or exchange of specie legal tender that is included in federal adjusted gross income to be subtracted in computing Missouri adjusted gross income, for tax years beginning on or after January 1, 2026.
No subtraction for gain on specie legal tender → Subtraction for the federally included capital gain on specie legal tender
Missouri Department of Revenue — Important Taxation Changes from the 2026 Legislative Session
- MississippiCutcreditEffective January 1, 2026 · S.B. 3124 (2026 Regular Session), ch. 493; Miss. Code Ann. § 27-7-22.43
Mississippi extended the Pregnancy Resource Act income tax credit for charitable contributions, previously available only to business enterprises, to individual taxpayers who are not business enterprises.
Credit available only to business enterprises → Credit also available to taxpayers that are not business enterprises
Mississippi Legislature — Senate Bill 3124 History, 2026 Regular Session
- MississippiCutrateEffective January 1, 2026 · H.B. 531 (2022), Mississippi Tax Freedom Act of 2022; Miss. Code Ann. § 27-7-5
Mississippi's individual income tax rate on taxable income above $10,000 falls from 4.4% to 4% for tax year 2026, with a further cut to 3.75% scheduled for 2027.
4.4% on taxable income over $10,000 → 4% on taxable income over $10,000
Mississippi Department of Revenue — Individual Income Tax - Tax Rates
Montana doubled its earned income tax credit from 10% to 20% of the federal earned income tax credit beginning in tax year 2026.
10% of the federal EITC → 20% of the federal EITC
- MontanaCutrateEffective January 1, 2026 · H.B. 337 (2025), ch. 227, L. 2025; Mont. Code Ann. § 15-30-2103
Montana cut its top individual income tax rate from 5.9% to 5.65% for tax year 2026 and widened the 4.7% lower bracket to the first $47,500 of taxable income for single filers and $95,000 for joint filers, with a further cut to 5.4% scheduled for 2027.
5.9% top rate over a much narrower 4.7% bracket → 4.7% on the first $47,500 single / $95,000 joint; 5.65% above
North Carolina's flat individual income tax rate drops from 4.25% to 3.99% for taxable years after 2025; any further reduction depends on statutory revenue triggers.
4.25% flat → 3.99% flat
Nebraska's top individual income tax rate falls from 5.20% to 4.55% for taxable years beginning on or after January 1, 2026, en route to 3.99% in 2027.
5.20% top rate (2025) → 4.55% top rate
- New YorkCutcreditEffective January 1, 2026 · S.3009-C / A.3009-C, Part C (ch. 59, Laws of 2025), N.Y. Tax Law § 606(c-1)
New York raised the Empire State child credit for children aged four to sixteen from $330 to $500 for tax years 2026 and 2027; the $1,000 credit for children aged three and under is unchanged.
$1,000 per child aged 3 or younger; $330 per child aged 4-16 (2025) → $1,000 per child aged 3 or younger; $500 per child aged 4-16
New York State Senate — S3009C, FY2026 Revenue Budget Bill (enacted as ch. 59, Laws of 2025)
- New YorkCutrateEffective January 1, 2026 · S.3009-C / A.3009-C, Part B (ch. 59, Laws of 2025), amending N.Y. Tax Law § 601
New York cut each of its five lowest personal income tax rates by 0.10 percentage points for tax year 2026, taking them from 4%, 4.5%, 5.25%, 5.5% and 6.0% to 3.90%, 4.40%, 5.15%, 5.40% and 5.90%, with a further 0.10-point cut scheduled for 2027.
4%, 4.5%, 5.25%, 5.5% and 6.0% on the five lowest brackets → 3.90%, 4.40%, 5.15%, 5.40% and 5.90%
New York State Senate — New York Consolidated Laws, Tax Law § 601 - Imposition of tax
Ohio collapsed its two-rate individual income tax into a single 2.75% rate on nonbusiness income above $26,050 for taxable years beginning in 2026, eliminating the 3.125% top bracket.
2.75% on $26,050-$100,000 and 3.125% above $100,000 → Flat 2.75% on nonbusiness income above $26,050 ($332 plus 2.75% of the excess)
Ohio Laws and Administrative Rules — Ohio Revised Code Section 5747.02
Oklahoma consolidated its six individual income tax brackets into four tiers and cut the top marginal rate from 4.75% to 4.5% for tax year 2026, adding a mechanism for further 0.25-point cuts when revenue conditions are met.
Six brackets topping out at 4.75% → 0% to $3,750, 2.5% to $4,900, 3.5% to $7,200, 4.5% above $7,200 (single/MFS; joint thresholds doubled)
South Carolina replaced its multi-bracket individual income tax with a two-bracket structure for tax year 2026: 1.99% on income under $30,000 and 5.21% (less a $966 credit-style offset) on income of $30,000 and above.
Graduated brackets with a 6% top marginal rate (2025) → 1.99% under $30,000; 5.21% minus $966 at $30,000 and above
South Carolina Department of Revenue — Information about H.4216
For tax year 2026 South Carolina decoupled from the federal standard and itemized deductions and created the South Carolina Income Adjusted Deduction of $15,000 (single/married filing separately), $22,500 (head of household) and $30,000 (married filing jointly), while capping the state earned income tax credit at $200.
Federal standard or itemized deduction flowed through to the South Carolina return → SCIAD of $15,000 / $22,500 / $30,000; state EITC capped at $200
South Carolina Department of Revenue — Information about H.4216
- UtahCutcreditEffective January 1, 2026 · H.B. 290 (2026 General Session), amending Utah Code § 59-10-1047
Utah widened eligibility for its $1,000-per-child nonrefundable child tax credit for tax year 2026 by raising the modified adjusted gross income phase-out thresholds to $30,500 (married filing separately), $49,000 (single and head of household) and $61,000 (joint).
Phase-out beginning at $27,000 MFS / $43,000 single and HOH / $54,000 joint → Phase-out beginning at $30,500 MFS / $49,000 single and HOH / $61,000 joint
Utah State Legislature — H.B. 290 Child Tax Credit Amendments (Enrolled Copy)
- UtahCutcreditEffective January 1, 2026 · H.B. 77 (2026 General Session), amending Utah Code § 59-10-1018
Utah removed the flat $10,000 cap on state or local income tax used in computing the Utah taxpayer tax credit for tax year 2026, replacing it with the amount actually allowed as a federal itemized deduction.
State and local income tax counted only up to $10,000 in the credit computation → Counted up to the amount allowed as a federal itemized state and local tax deduction
Utah State Legislature — H.B. 77 Tax Modifications (Enrolled Copy)
Utah cut its flat individual income tax rate from 4.5% to 4.45%, with retrospective operation for taxable years beginning on or after January 1, 2026.
4.5% flat (2025) → 4.45% flat
Utah State Legislature — S.B. 60 Income Tax Rate Amendments (Enrolled Copy)
Virginia reinstated an educator expense deduction of up to $500 in eligible classroom expenses, starting with tax year 2026 returns.
No Virginia educator expense deduction → Deduction of up to $500 in eligible educator expenses
Virginia Department of Taxation — New Virginia Tax Laws (2026 Session)
Vermont requires individuals, estates and trusts to add back the federal exclusion for qualified small business stock sales for taxable years beginning on or after January 1, 2026; Vermont's own 40%/$350,000 capital gains exclusion is unaffected.
No Vermont addback of the federal qualified small business stock exclusion → Addback equal to the federal QSBS exclusion
West Virginia completes its phase-out of income tax on Social Security benefits in tax year 2026, when the decreasing modification reaches 100% and the benefits become fully exempt at all income levels.
65% decreasing modification (2025) → 100% decreasing modification (full exemption)
West Virginia cut every personal income tax rate by 5% for tax year 2026, retroactive to January 1, 2026, lowering the top marginal rate from 4.82% to 4.58%.
4.82% top rate (2025) → 4.58% top rate (5% cut across all brackets)
Why our count may differ from what you read elsewhere
Other years
This list was last verified on . Know of a change we have missed? Tell us — include the bill number or the state source and we will add it.