Top income rates, capital-gains treatment, estate and inheritance taxes in 50 states and D.C.
Highest top rates: California 13.3%, Hawaii 11%, New York 10.9%, District of Columbia 10.75%, New Jersey 10.75%. Against zero in Alaska, Florida, Georgia, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
An estate is exposed in 18 states once federal exemption planning is done — a separate map from the income one, and the reason a move can help one and hurt the other.
| State | Top rate | Structure | Capital gains | Estate / inheritance |
|---|---|---|---|---|
| Alabama | 5% | Graduated, top bracket from $3,000 | Taxed as ordinary income. | None |
| Alaska | none | No individual income tax | No individual income tax. | None |
| Arizona | 2.5% | Flat | 25% of net long-term capital gains excluded; remainder taxed at 2.5%. | None |
| Arkansas | 3.9% | Graduated, top bracket from $4,600 | 50% of net long-term capital gains excluded; net gain above $10 million exempt. | None |
| California | 13.3% | Graduated, top bracket from $1,000,000 | Taxed as ordinary income; top rate includes 1% mental health services tax on income over $1 million. | None |
| Colorado | 4.4% | Flat | Taxed as ordinary income. | None |
| Connecticut | 6.99% | Graduated, top bracket from $500,000 | Taxed as ordinary income; tax benefit recapture means many high earners pay the top rate on all income. | Estate from $13,990,000 |
| Delaware | 6.6% | Graduated, top bracket from $60,000 | Taxed as ordinary income. | None |
| District of Columbia | 10.75% | Graduated, top bracket from $1,000,000 | Taxed as ordinary income. | Estate from $4,873,200 |
| Florida | none | No individual income tax | No individual income tax. | None |
| Georgia | none | No individual income tax | Taxed as ordinary income. | None |
| Hawaii | 11% | Graduated, top bracket from $325,000 | Long-term capital gains taxed at a maximum 7.25%. | Estate from $5,490,000 |
| Idaho | 5.3% | Flat | Taxed as ordinary income. | None |
| Illinois | 4.95% | Flat | Taxed as ordinary income. | Estate from $4,000,000 |
| Indiana | 2.95% | Flat | Taxed as ordinary income (county income taxes also apply). | None |
| Iowa | 3.8% | Flat | Taxed as ordinary income. | None |
| Kansas | 5.58% | Graduated, top bracket from $23,000 | Taxed as ordinary income. | None |
| Kentucky | 3.5% | Flat | Taxed as ordinary income. | Inheritance |
| Louisiana | 3% | Flat | Taxed as ordinary income. | None |
| Maine | 7.15% | Graduated, top bracket from $64,849 | Taxed as ordinary income. | Estate from $7,160,000 |
| Maryland | 6.5% | Graduated, top bracket from $1,000,000 | Taxed as ordinary income plus a 2% surtax on net capital gains when federal AGI exceeds $350,000 (from tax year 2025; some exclusions, including primary homes sold for up to $1.5 million). County income taxes also apply. | Estate from $5,000,000 · Inheritance |
| Massachusetts | 9% | Graduated, top bracket from $1,083,150 | 5% base rate plus 4% surtax on income above the indexed threshold, which includes capital gains. | Estate from $2,000,000 |
| Michigan | 4.25% | Flat | Taxed as ordinary income (city income taxes also apply). | None |
| Minnesota | 9.85% | Graduated, top bracket from $203,150 | Taxed as ordinary income plus a 1% tax on net investment income above $1 million. | Estate from $3,000,000 |
| Mississippi | 4% | Flat | Taxed as ordinary income. | None |
| Missouri | 4.7% | Graduated, top bracket from $9,436 | Capital gains exempt from state income tax from Jan. 1, 2025 (HB594); gains on gold and silver specie exempt from 2026 (HB754). | None |
| Montana | 5.65% | Graduated, top bracket from $47,500 | Long-term capital gains taxed at 3.0% and 4.1%. | None |
| Nebraska | 4.55% | Graduated, top bracket from $24,760 | Taxed as ordinary income. | Inheritance |
| Nevada | none | No individual income tax | No individual income tax. | None |
| New Hampshire | none | No individual income tax | No tax on wages, interest, dividends or capital gains (interest and dividends tax repealed as of 2025). | None |
| New Jersey | 10.75% | Graduated, top bracket from $1,000,000 | Taxed as ordinary income; new state QSBS exclusion modeled on IRC 1202 from Jan. 1, 2026. | Inheritance |
| New Mexico | 5.9% | Graduated, top bracket from $210,000 | From 2025, excludes the greater of $2,500 or 40% of up to $1 million of long-term capital gain. | None |
| New York | 10.9% | Graduated, top bracket from $25,000,000 | Taxed as ordinary income; tax benefit recapture applies at high incomes; New York City tax is additional. | Estate from $7,350,000 |
| North Carolina | 3.99% | Flat | Taxed as ordinary income. | None |
| North Dakota | 2.5% | Graduated, top bracket from $244,825 | 40% of net long-term capital gains excluded. | None |
| Ohio | 2.75% | Flat | Taxed as ordinary income (municipal income taxes also apply). | None |
| Oklahoma | 4.5% | Graduated, top bracket from $7,200 | Taxed as ordinary income. | None |
| Oregon | 9.9% | Graduated, top bracket from $125,000 | Taxed as ordinary income. | Estate from $1,000,000 |
| Pennsylvania | 3.07% | Flat | Taxed at the flat 3.07% rate (local earned income taxes apply to wages). | Inheritance |
| Rhode Island | 5.99% | Graduated, top bracket from $186,450 | Taxed as ordinary income. | Estate from $1,838,056 |
| South Carolina | 6% | Graduated, top bracket from $18,230 | 44% of net long-term capital gains excluded. | None |
| South Dakota | none | No individual income tax | No individual income tax. | None |
| Tennessee | none | No individual income tax | No individual income tax. | None |
| Texas | none | No individual income tax | No individual income tax. | None |
| Utah | 4.5% | Flat | Taxed as ordinary income. | None |
| Vermont | 8.75% | Graduated, top bracket from $249,700 | Taxed as ordinary income, with a limited exclusion for certain long-term gains. | Estate from $5,000,000 |
| Virginia | 5.75% | Graduated, top bracket from $17,000 | Taxed as ordinary income. | None |
| Washington | none | No individual income tax | No wage income tax. Capital gains tax of 7% above an annual standard deduction (about $278,000 in 2026 per Tax Foundation) and 9.9% on gains above $1 million (SB 5813, from tax year 2025); QSBS gains remain excluded. | Estate from $3,000,000 |
| West Virginia | 4.82% | Graduated, top bracket from $60,000 | Taxed as ordinary income. | None |
| Wisconsin | 7.65% | Graduated, top bracket from $332,720 | 30% deduction for net long-term capital gains (60% for farm assets). | None |
| Wyoming | none | No individual income tax | No individual income tax. | None |