Guide · 2026 Tax Year
State Income Tax Withholding
Every state with an income tax has its own withholding rules, formulas, and forms. This overview covers the 20 states Withhold Right supports in 2026 — including the eleven with state income tax and the nine without. Use it as a starting point; then jump to the state calculator for the exact math.
States with state income tax (16)
These states require employers to withhold state income tax from every paycheck. Most are flat-rate; a handful use brackets. Click through for the state-specific calculator, key facts, and FAQs.
Oklahoma
2.5% / 3.5% / 4.5% brackets
Pennsylvania
3.07% flat
Illinois
4.95% flat
Massachusetts
5.0% flat
Colorado
4.4% flat
Virginia
2.0% – 5.75% brackets
Georgia
5.19% flat
North Carolina
3.99% flat
Michigan
4.25% flat
Indiana
2.95% flat
Kentucky
3.5% flat
California
1.1% – 14.63% progressive
New York
3.9% – 8.82% progressive (state)
New Jersey
1.5% – 11.8% progressive (5 tables)
Ohio
2.7% flat above $26,050
Arizona
0.5% – 3.5% elected flat (default 2.0%)
States with no state income tax (9)
Employers in these states withhold federal income tax and FICA only. Each state page explains the rules, unemployment tax, and any wage-based obligations unique to the state.
Flat-rate vs. bracket states — how they differ in payroll
In a flat-rate state, the math is a single multiplication: taxable wages times the rate. Pennsylvania (3.07%) and Colorado (4.4%) are the simplest — withholding is gross wages times the rate, with no W-4 lookup required for most employees. In a bracketstate like Virginia or 2026 Oklahoma, you annualize the wage, apply a progressive schedule (similar to the federal method), and de-annualize back. The math is heavier but the rules are published by each state’s revenue authority and Withhold Right implements them directly.
Local taxes are a separate conversation
Several states allow localities to impose their own income tax on top of the state. Pennsylvania Earned Income Tax (EIT), Indiana County Option Income Tax (COIT), Kentucky occupational license taxes, Ohio city income taxes — these are real obligations you need to handle, and they are not published in a single national source. Withhold Right does not calculate local taxes; check with your local tax collector.
Calculate state withholding
Open the main calculator and select your state, or jump directly to a state-specific page for the rules that apply to you.
Open Calculator →Frequently Asked Questions
Which states have no state income tax?
In 2026, nine states impose no broad-based state income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Employers in these states still withhold federal income tax and FICA, but no state-level income tax withholding is required.
What is the difference between a flat-rate state and a bracket state?
Flat-rate states (Colorado, Illinois, Michigan, Pennsylvania, and others) apply a single percentage to taxable wages — no brackets, no filing-status adjustments on rate. Bracket states (Virginia, Oklahoma) use a progressive schedule with rising rates at higher income levels, similar to the federal system.
Do I need a separate state W-4 form?
Sometimes. States like Illinois (IL-W-4), Georgia (G-4), and Oklahoma have their own withholding certificate because their allowance or exemption rules differ from the federal W-4. Other states (Colorado, Pennsylvania) derive state withholding directly from the federal W-4 or from gross wages without allowances.
Does Withhold Right handle local income taxes?
Withhold Right calculates state-level income tax withholding. It does not calculate local income taxes such as Pennsylvania Earned Income Tax (EIT), Indiana County Option Income Tax (COIT), or city taxes in Ohio and Kentucky. Check with your local tax authority for those rates.