State-by-State Small Business Tax Guide — 2026
State taxes can make or break your bottom line. Each guide covers your state's income tax rates, self-employment rules, estimated payment requirements, filing deadlines, and specific deductions — everything a freelancer or small business owner needs to stay compliant and keep more of what they earn.
ALAlabama
2% — 5% (progressive)AKAlaska
No income taxAZArizona
2.5% flat rateARArkansas
2% — 4.4% (progressive)CACalifornia
1% — 13.3% (progressive, 10 brackets)COColorado
4.4% flat rateCTConnecticut
3% — 6.99% (progressive)DEDelaware
2.2% — 6.6% (progressive)FLFlorida
No income taxGAGeorgia
5.49% flat rate (transitioning from progressive)HIHawaii
1.4% — 11% (progressive, 12 brackets)IDIdaho
5.695% flat rateILIllinois
4.95% flat rateINIndiana
3.05% flat rate + county tax (0.5% — 3%)IAIowa
3.8% flat rate (as of 2026)KSKansas
3.1% — 5.7% (progressive, 3 brackets)KYKentucky
4.0% flat rateLALouisiana
1.85% — 4.25% (progressive, 3 brackets)MEMaine
5.8% — 7.15% (progressive, 3 brackets)MDMaryland
2% — 5.75% state + 2.25% — 3.2% county (progressive)MAMassachusetts
5% flat rate + 4% surtax on income over $1MMIMichigan
4.25% flat rate + some cities levy local income taxMNMinnesota
5.35% — 9.85% (progressive, 4 brackets)MSMississippi
4.7% flat rate (as of 2026)MOMissouri
2% — 4.8% (progressive)MTMontana
4.7% flat rate (as of 2024)NENebraska
2.46% — 5.84% (progressive)NVNevada
No income taxNHNew Hampshire
No income taxNJNew Jersey
1.4% — 10.75% (progressive)NMNew Mexico
1.7% — 5.9% (progressive)NYNew York
4% — 10.9% state + NYC 3.078% — 3.876% (progressive)NCNorth Carolina
4.5% flat rate (declining toward 3.99%)NDNorth Dakota
1.95% flat rateOHOhio
0% — 3.5% (progressive, first $26,050 exempt)OKOklahoma
0.25% — 4.75% (progressive)OROregon
4.75% — 9.9% (progressive) + local transit taxesPAPennsylvania
3.07% flat rate + local earned income tax (typically 1% — 3.93%)RIRhode Island
3.75% — 5.99% (progressive, 3 brackets)SCSouth Carolina
0% — 6.3% (progressive, being reduced)SDSouth Dakota
No income taxTNTennessee
No income taxTXTexas
No income taxUTUtah
4.65% flat rateVTVermont
3.35% — 8.75% (progressive)VAVirginia
2% — 5.75% (progressive, 4 brackets)WAWashington
No income taxWVWest Virginia
2.36% — 5.12% (progressive, being reduced)WIWisconsin
3.5% — 7.65% (progressive, 4 brackets)WYWyoming
No income taxTaxTidy provides expense organization tools based on the most current US tax law available to it. TaxTidy is not a CPA, Enrolled Agent, or licensed tax professional. All categorizations, deductions, and tax calculations are estimates. Please verify all data for accuracy and consult a certified tax professional before filing.