Highest and Lowest State Tax Burdens Revealed for 2026

Oregon has the highest effective tax rate in the nation for 2026, at 24.4% of income, according to a FinanceBuzz report analyzing 2025 tax data.

Massachusetts ranks second at 23.5%, driven by high median incomes pushing residents into top brackets.

States with the highest burdens-like New York, Maryland, and Minnesota-combine above-average incomes with steep state tax rates.

Florida has the lowest effective rate at 15.7%, thanks to no state income tax. Nevada, Tennessee, South Dakota, and Wyoming follow closely, all tax-free.

Eight states cut income taxes in 2026, led by Ohio adopting a flat tax. The trend reflects growing state-level tax competition.

FinanceBuzz used U.S. Census median income figures and federal/state tax codes to calculate effective rates.