Highest marginal income tax rates in 2026: Which states exceed 10% and are you paying more now?

The highest marginal income tax rates in 2026 now reach 13.3%, the highest in the United States, led by California. This sharp gap is shaping where high earners choose to live.

Key takeaways

Quick scan — what you need to know:

• The highest marginal income tax rates in 2026 now reach 13.3%, the highest in the United States, led by California.
• This sharp gap is shaping where high earners choose to live.
• The highest marginal income tax rates in 2026 also cross 10% in New York, Hawaii, and New Jersey.
• These rates apply only to top income brackets.

Background

What led here, in plain terms:

• Not total income.
• Still, they significantly raise tax bills for million-dollar earners.
• In contrast, states like Texas and Florida charge zero income tax.
• This divide makes the highest marginal income tax rates in 2026 a key financial factor.

Why it matters

Why readers and decision-makers should care:

• Not total income.
• Still, they significantly raise tax bills for million-dollar earners.
• In contrast, states like Texas and Florida charge zero income tax.