Rates, residency and the cost of where you live.
The Tax Foundation's 2026 State Tax Competitiveness Index shows which states keep the most of a high earner's income, and which state governments took the biggest bites in 2025.
Florida's governor and House leaders are split over how to cut homestead property taxes. One House plan would phase out non-school levies on homes by 2037, a shift worth far more to high-value homeowners.
In an August 2025 special session, Colorado signed bills that keep taxing income the federal One Big Beautiful Bill Act now shields, raising state bills for owners of pass-through businesses.
Gov. Mike Kehoe signed House Bill 594, letting individuals deduct 100% of federally reported capital gains, short-term and long-term, starting with the 2025 tax year.