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.