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 tax
AZArizona
2.5% flat rate
ARArkansas
2% — 4.4% (progressive)
CACalifornia
1% — 13.3% (progressive, 10 brackets)
COColorado
4.4% flat rate
CTConnecticut
3% — 6.99% (progressive)
DEDelaware
2.2% — 6.6% (progressive)
FLFlorida
No income tax
GAGeorgia
5.49% flat rate (transitioning from progressive)
HIHawaii
1.4% — 11% (progressive, 12 brackets)
IDIdaho
5.695% flat rate
ILIllinois
4.95% flat rate
INIndiana
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 rate
LALouisiana
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 $1M
MIMichigan
4.25% flat rate + some cities levy local income tax
MNMinnesota
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 tax
NHNew Hampshire
No income tax
NJNew 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 rate
OHOhio
0% — 3.5% (progressive, first $26,050 exempt)
OKOklahoma
0.25% — 4.75% (progressive)
OROregon
4.75% — 9.9% (progressive) + local transit taxes
PAPennsylvania
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 tax
TNTennessee
No income tax
TXTexas
No income tax
UTUtah
4.65% flat rate
VTVermont
3.35% — 8.75% (progressive)
VAVirginia
2% — 5.75% (progressive, 4 brackets)
WAWashington
No income tax
WVWest Virginia
2.36% — 5.12% (progressive, being reduced)
WIWisconsin
3.5% — 7.65% (progressive, 4 brackets)
WYWyoming
No income tax

One Set of Receipts, Two Sets of Deadlines

Whichever state you land on, the tax gets charged on net profit — what you earned minus what you can prove you spent. Your state and the IRS want that proof on different schedules, from the same shoebox.

TaxTidy keeps one clean record that answers both. Photograph a receipt and it reads the vendor, the amount and the date in about three seconds, then files the expense on its Schedule C line with the image kept alongside it. Nothing gets entered twice, and nothing waits on you remembering a purchase from eight months ago.

Your Audit Readiness Score shows how solid that record is before anyone — federal or state — asks to see it.

TaxTidy 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.

Get Ready for Both Filings at Once

Your first 25 scans are on us — free for life, no credit card. Enough to sort this quarter's receipts and see your Audit Readiness Score for the first time.

Get Started Free