State income tax changes in 2026: who’s paying less
Georgia, Arkansas, South Carolina, West Virginia, Utah, Mississippi, Ohio and others changed their income tax for 2026. Here's what changed and what it's worth.
More than a dozen states changed their income tax for 2026. Some changes started on 1 January; others were passed during the year and made retroactive to 1 January, which means they’ll show up as a smaller tax bill or a bigger refund when you file, even if your paychecks didn’t change straight away.
Changes passed during 2026
- Georgia: the flat rate fell from 5.19% to 4.99%, the standard deduction rose to $15,000 (single) and $30,000 (married filing jointly), and the dependent deduction rose to $5,000. Employers switched to the new withholding on 11 May 2026. On $75,000 (single), Georgia tax falls from $3,269.70 to $2,994, a saving of $275.70.
- Arkansas: the top rate fell from 3.9% to 3.7%.
- South Carolina: a new two-rate system: 1.99% on the first $30,000 of taxable income and 5.21% above that. The state also stopped using the federal standard deduction and introduced its own, $15,000 single and $30,000 married, which shrinks at higher incomes.
- West Virginia: every rate came down, with the top rate now 4.58%.
- Utah: lawmakers cut the flat rate from 4.5% to 4.45%. When we checked, the state tax commission’s rate page still showed 4.5%, so expect it to be updated.
- Maine: the standard deduction rose to $15,700 (single) and $31,400 (married), and a new 2% surcharge applies to income over $1 million (single) or $1.5 million (married).
Changes from 1 January 2026
- Mississippi: the rate fell from 4.4% to 4%, on income above $10,000. It’s due to fall again to 3.75% in 2027.
- Ohio: a single flat rate of 2.75% on non-business income above $26,050.
- Indiana: 2.95%. Kentucky: 3.5%. North Carolina: 3.99%.
What it means at $75,000
| State | 2026 state income tax, single, $75,000 |
|---|---|
| Ohio | $1,280.13 |
| South Carolina | $2,160.00 |
| Indiana | $2,183.00 |
| Mississippi | $2,268.00 |
| Arkansas | $2,287.41 |
| North Carolina | $2,483.78 |
| Kentucky | $2,507.40 |
| West Virginia | $2,545.90 |
| Georgia | $2,994.00 |
| Utah | $3,109.73 |
| Maine | $3,384.70 |
These figures use each state’s standard deduction and exemptions and leave out local taxes and credits. Indiana and Kentucky counties and many Ohio cities add their own income tax on top. Maine also deducts 0.5% for its paid family leave programme.
What’s coming
Colorado and Missouri voters decided income tax measures at the 3 November 2026 election, too late to affect 2026 rates. We’ll update our calculators when any 2027 changes are confirmed.
See your own figures with the paycheck calculator for Georgia, South Carolina, Arkansas, West Virginia, Utah, Maine or any other state.
Sources
Tax Foundation, State Individual Income Tax Rates and Brackets 2026; the Georgia Department of Revenue employer guide; Arkansas DFA withholding formula (May 2026); South Carolina H.4216; West Virginia withholding tables (March 2026); Maine Revenue Services withholding booklet (August 2026).