US State Tax Calculator 2026: Complete Guide to State Income Tax, Sales Tax, Corporate Tax & More

Use the interactive calculator above to instantly compare state tax rates across all 50 states and Washington D.C. Whether you're a startup founder choosing a state of incorporation, a remote worker planning a relocation, or a business owner calculating your total tax burden, this tool gives you real 2026 figures across every tax category in one place.

What Is State Income Tax and How Does It Work?

State income tax is a percentage of your annual earnings collected by the state government, separate from, and in addition to, federal income tax. Unlike the federal rate, which applies uniformly across the country, state income tax rates vary dramatically: from 0% in states like Texas, Florida, and Nevada to over 13% in California.

States calculate income tax in two main ways. Flat tax states: including Arizona (2.5%), North Carolina (3.99%), Colorado (4.4%), and Illinois (4.95%), apply a single rate to all taxable income regardless of earnings level. Bracketed tax states: including California, New York, New Jersey, and Minnesota, apply progressively higher rates as income rises, similar to the federal bracket system.

As of 2026, nine states impose no personal income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire completed its phase-out of the interest and dividends tax in 2025, making it fully income-tax-free beginning in 2026.

State Corporate Tax Rates 2026: What Businesses Pay

Corporate income tax is levied by states on the net income of corporations doing business within their borders. Federal corporate tax sits at a flat 21%, but state corporate tax stacks on top of that, ranging from 0% (Nevada, Texas, Wyoming, South Dakota, Washington) to 9.8% in Minnesota.

For startups and LLCs, corporate tax structure matters enormously. Pass-through entities, sole proprietorships, partnerships, S-Corps, and most LLCs, don't pay corporate income tax at the entity level. Instead, income passes through to the owner's personal return and is taxed at the state's individual income tax rate.

Key 2026 corporate tax changes:

• Pennsylvania reduced its corporate net income tax from 8.99% to 7.49%
• North Carolina maintains the lowest corporate rate among states with an income tax at 2.5%
• Georgia lowered its flat individual and corporate rate to 5.09%, continuing a multi-year reduction plan
• Iowa consolidated to a flat 7.1% corporate rate, down from a previous top bracket of 9.8%

States with no corporate income tax, Nevada, Wyoming, South Dakota, and Texas, are frequently chosen by startups and holding companies for this reason, though gross receipts taxes (Texas) and other business fees may still apply.

Sales Tax by State 2026: State + Local Combined Rates

Sales tax in the United States is uniquely complex: the federal government imposes no national sales tax, so rates vary by state, county, city, and special jurisdiction. The tool above shows both the state base rate and the average combined local rate for each state.

States with no sales tax (2026): Alaska, Delaware, Montana, New Hampshire, Oregon. Note that Alaska has no state sales tax but allows local municipalities to impose their own, averaging 1.76% combined.

Highest combined sales tax states (2026):

• Louisiana: 9.55% (state 4.45% + local 5.10%)
• Tennessee: 9.55% (state 7.00% + local 2.55%)
• Arkansas: 9.43% (state 6.50% + local 2.93%)
• Oklahoma: 8.97% (state 4.50% + local 4.47%)
• Illinois: 8.74% (state 6.25% + local 2.49%)

For businesses selling products, whether physical retail, e-commerce, or SaaS, sales tax compliance is a growing liability. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, states can require out-of-state sellers to collect and remit sales tax based on economic nexus, meaning you can owe sales tax in dozens of states even without a physical presence there.

Property Tax Rates by State 2026: What Homeowners and Investors Pay

Property tax is levied by local governments, counties, municipalities, school districts, as a percentage of assessed property value. Rates shown in the calculator represent state averages; your actual rate depends on your specific county and local assessments.

Lowest effective property tax rates (2026):

• Hawaii: 0.27%
• Alabama: 0.41%
• Nevada: 0.48%
• Arizona: 0.51%
• Utah: 0.52%

Highest effective property tax rates (2026):

• New Jersey: 2.23%
• Illinois: 2.07%
• New Hampshire: 2.09%
• Vermont: 1.83%
• Nebraska: 1.73%

For real estate investors, property tax is a recurring operating cost that directly impacts cap rates and cash flow. A $500,000 property in New Jersey costs approximately $11,150/year in property tax. The same property in Hawaii costs $1,350/year. Over a ten-year hold, that difference exceeds $98,000.

Capital Gains Tax by State 2026: What You Pay on Investment Profits

When you sell a capital asset, stocks, real estate, a business, for more than you paid, the profit is a capital gain. Federal long-term capital gains tax rates for 2026 are 0%, 15%, or 20% depending on your income. State capital gains tax is additional.

Most states tax capital gains as ordinary income, meaning your state income tax rate applies directly to your gains. California remains the highest at 13.3% for top earners. New Jersey follows at 10.75%. New York reaches 10.9%.

States with no capital gains tax (2026): Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming, the same states with no income tax, as capital gains flow through personal income tax returns.

Washington state is a notable exception: it has no personal income tax but implemented a 7% capital gains excise tax in 2023 on gains above $250,000, applying to stocks and bonds (not real estate).

Estate and Inheritance Tax: Which States Still Have One?

While the federal estate tax exemption for 2026 stands at $13.99 million per individual, twelve states and Washington D.C. impose their own estate taxes, often with much lower exemption thresholds.

States with estate tax (2026): Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington, and D.C.

Massachusetts and Oregon have the lowest exemption thresholds, $2 million, meaning estates above that amount face state-level estate tax even if well below the federal exemption.

Six states have an inheritance tax (paid by the beneficiary, not the estate): Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Maryland is the only state with both.

For business succession planning and estate planning, state of residency and the location of business assets matter significantly.

Best States for Business in 2026: Low Tax Analysis

When evaluating the best state to incorporate or relocate a business, total tax burden matters more than any single rate. The calculator above ranks all 50 states by combined annual burden based on your specific income, property value, and spending inputs.

Consistently lowest total burden states for businesses:

• Wyoming: No income tax, no corporate tax, low sales tax (5.36%), low property tax (0.61%)
• Nevada: No income tax, no corporate tax, moderate sales tax (8.23%), low property tax (0.48%)
• South Dakota: No income tax, no corporate tax, low sales tax (6.10%), moderate property tax (1.08%)
• Texas: No income tax, no corporate tax (but gross receipts tax applies), moderate sales tax (8.20%), higher property tax (1.60%)
• Florida: No income tax, 5.5% corporate tax, moderate sales tax (7.05%), moderate property tax (0.86%)

Best states for high-income founders and investors: Wyoming and Nevada rank highest due to no income, corporate, or capital gains tax combined with relatively low overall burden. For a founder earning $500,000/year, the difference between California (13.3% top rate) and Wyoming (0%) represents over $55,000 in annual state income tax savings.

LLC Tax by State 2026: Structure Matters

How your business is taxed at the state level depends heavily on entity structure. The same $200,000 in business income produces very different state tax outcomes depending on whether you operate as a sole proprietor, LLC, S-Corp, or C-Corp.

Single-member LLC: Taxed as a sole proprietor by default. Income appears on your personal return and is subject to state income tax at individual rates plus self-employment tax (15.3% federal on first $168,600 of net earnings).

Multi-member LLC: Taxed as a partnership by default. Each member reports their share of profits on their personal return.

S-Corporation election: Allows owner-employees to take a salary (subject to payroll taxes) and distributions (not subject to self-employment tax), potentially reducing overall tax burden significantly.

C-Corporation: Subject to corporate income tax at the entity level. Dividends distributed to shareholders are then taxed again at individual capital gains rates, the so-called "double taxation."

Some states impose additional LLC fees regardless of income. California charges a minimum $800 franchise tax plus a graduated fee based on gross receipts. Delaware charges a flat $300 annual franchise tax for LLCs. These costs must factor into your entity and state selection.

Remote Workers and Digital Nomads: Which State Taxes Apply?

State income tax liability is generally determined by domicile (your permanent home state) and residency (where you physically spend time). Remote workers who move states, work across state lines, or operate as digital nomads face complex multi-state tax obligations.

Key rules for 2026:

• Domicile state taxes all income regardless of where it was earned
• Non-resident states may tax income earned within their borders (source-based taxation)
• Some states have reciprocity agreements that prevent double taxation for workers who live in one state and work in another
• Convenience of the employer rule (New York, Connecticut, Delaware) can tax remote workers based on where their employer is located, even if the employee never enters the state

For digital nomads and location-independent founders, establishing domicile in a no-income-tax state (Wyoming, Nevada, South Dakota) requires genuine proof of residency: driver's license, voter registration, physical presence, banking, and more. States with high income tax, California, New York, New Jersey, aggressively audit relocated taxpayers.

Startup Founder Tax Planning: Key 2026 Considerations

For startup founders, tax planning begins at incorporation, not at filing time. Decisions made in year one have compounding effects over the life of the company.

State of incorporation vs. state of operation: Most startups incorporate in Delaware for its established corporate law and investor familiarity, but Delaware is not necessarily optimal for tax purposes. An LLC or S-Corp operating in a no-income-tax state may save significantly more over time.

Qualified Small Business Stock (QSBS): Under Section 1202, founders and early investors in C-Corporations may exclude up to 100% of federal capital gains on up to $10 million in gains, if shares are held for at least five years. State treatment varies; California does not conform to QSBS exclusion.

R&D Tax Credits: Available at both federal and state levels for qualifying research and development expenses. Many states, including Texas, California, and New York, offer refundable R&D credits that reduce state tax liability dollar-for-dollar.

Startup cost deduction: Startups can deduct up to $5,000 of startup costs in the first year of operation, with remaining costs amortized over 180 months.

Bonus depreciation 2026: Current bonus depreciation gives a deduction of 100% of the purchase price of new property placed in service through the end of 2026, covering equipment, computers, and furniture, a significant first-year deduction opportunity.

How to Use This Tax Calculator

Step 1, Select your primary state from the dropdown on the left. The full tax profile populates immediately.

Step 2, Select a comparison state to run a side-by-side analysis across all six tax categories.

Step 3, Adjust your inputs using the sliders: annual income, property value, business income, annual purchases, and capital gains.

Step 4, Navigate tax categories using the tabs: Personal Income Tax, Corporate Tax, Sales Tax, Property Tax, Capital Gains, and Estate & Inheritance.

Step 5, Review the full ranking at the bottom to see all 50 states sorted by total estimated tax burden based on your specific numbers.

The overall tax burden score (A through F) reflects a weighted combination of income tax rate, corporate rate, sales tax, and property tax relative to your inputs.

Frequently Asked Questions

Which state has the lowest income tax in 2026? Nine states have zero personal income tax: Alaska, Florida, Nevada, New Hampshire (as of 2026), South Dakota, Tennessee, Texas, Washington, and Wyoming.

Which state has the highest income tax in 2026? California at 13.3% for income over $1 million. New Jersey (10.75%) and New York (10.9%) follow.

What is the best state for an LLC in 2026? Wyoming is consistently ranked the most favorable: no income tax, no corporate tax, strong LLC privacy laws, low annual fees ($60/year), and no state capital gains tax.

Does Delaware have low taxes? Delaware has no sales tax and a 0% property tax on intangible assets, making it attractive for holding companies. However, its 6.6% top income tax rate and 8.7% corporate rate are not the lowest nationally.

What states have no sales tax in 2026? Alaska, Delaware, Montana, New Hampshire, and Oregon have no statewide sales tax.

How is capital gains taxed at the state level? Most states tax capital gains as ordinary income at the state income tax rate. No-income-tax states generally impose no capital gains tax. Washington is an exception with a 7% excise tax on gains above $250,000.

Does my LLC pay corporate tax? Single-member and multi-member LLCs are pass-through entities by default, the LLC itself pays no corporate income tax. Income flows to the owner's personal return and is taxed at individual rates.

Data sourced from Tax Foundation, Kiplinger, and official state revenue department publications. Rates reflect legislation in effect as of January 1, 2026. This tool is for estimation purposes only and does not constitute tax advice. Consult a licensed CPA or tax attorney for your specific situation.

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