Last updated: 2026-05-23

State Tax Thresholds (2026)

A 50-state reference for the small-business tax thresholds that decide how much state liability sits behind every federal decision: state income/franchise tax structure, pass-through entity tax election availability (the SALT cap workaround), 1099-K state reporting thresholds (most state agencies follow the federal $20,000/200-transaction floor; ~10 states have already enacted lower thresholds), sales tax economic nexus for remote sellers, LLC formation and annual fees, and estimated tax safe-harbor rules. Each state page carries a last-verified date and primary-source citations.

Reference, not legal or tax advice. Tax law and thresholds change. Every claim below traces to a citation on the underlying state page. Verify against the current state Department of Revenue and IRS guidance, and consult a licensed CPA or attorney for any decision with tax consequences.

State comparison

Quick scan across the axes covered on every state page. Click a state for the full reference with citations.

StateIncome taxPTE election1099-K state thresholdSales tax nexus
Alabama 2% - 5% Yes Federal $20k $100,000
Alaska None No Federal $20k No sales tax
Arizona 2.5% flat (post-2023) Yes Federal $20k $100,000
Arkansas ~2% - 4.4% Yes $2,500 $100,000
California 1% - 12.3% (plus 1% mental-health surcharge over $1M) Yes Federal $20k $100,000
Colorado 4.4% flat Yes Federal $20k $100,000
Connecticut 2% - 6.99% Yes Federal $20k $100,000
Delaware 2.2% - 6.6% Yes Federal $20k No sales tax
Florida None No Federal $20k $100,000
Georgia 5.39% flat (2024); declining to 4.99% by 2029 Yes Federal $20k $100,000
Hawaii 1.4% - 11% Yes Federal $20k $100,000
Idaho 5.695% flat (post-2024 consolidation) Yes Federal $20k $100,000
Illinois 4.95% flat (plus 1.5% personal property replacement tax on partnerships/S-Corps) Yes $1,000 $100,000
Indiana 3.15% flat (2024; declining schedule to 2.9%) plus county income tax 0.5%-3% Yes Federal $20k $100,000
Iowa 3.8% flat (post-2025 consolidation) Yes Federal $20k $100,000
Kansas 3.1% - 5.7% Yes Federal $20k $100,000
Kentucky 4% flat (2024; declining via revenue triggers) Yes Federal $20k $100,000
Louisiana 3% flat (post-2024) Yes Federal $20k $100,000
Maine 5.8% - 7.15% Yes Federal $20k $100,000
Maryland 2% - 5.75% plus county income tax 2.25%-3.2% Yes $600 $100,000
Massachusetts 5% flat (plus 4% surtax on income over $1M) Yes $600 $100,000
Michigan 4.25% flat plus city income taxes (Detroit 2.4% / various 1%-1.5%) Yes Federal $20k $100,000
Minnesota 5.35% - 9.85% Yes Federal $20k $100,000
Mississippi 4% flat on income over $10,000 (post-2024) Yes Federal $20k $100,000
Missouri 2% - 4.7% (post-2024) Yes Federal $20k $100,000
Montana 4.7% - 5.9% Yes Federal $20k No sales tax
Nebraska 2.46% - 5.84% (declining via 2023 reform) Yes Federal $20k $100,000
Nevada None No Federal $20k $100,000
New Hampshire No wage income tax (Interest & Dividends Tax repealed effective 2025) No Federal $20k No sales tax
New Jersey 1.4% - 10.75% Yes $1,000 $100,000
New Mexico 1.7% - 5.9% Yes Federal $20k $100,000
New York 4% - 10.9% (plus NYC additional 3.078% - 3.876% for NYC residents) Yes Federal $20k $100,000
North Carolina 4.5% flat (2024; declining schedule to 3.99% by 2027) Yes Federal $20k $100,000
North Dakota 1.95% - 2.5% Yes Federal $20k $100,000
Ohio 2.75% - 3.5% (income tax post-2024 consolidation); plus Commercial Activity Tax (CAT) 0.26% on Ohio gross receipts over $3M threshold Yes Federal $20k $100,000
Oklahoma 0.25% - 4.75% Yes Federal $20k $100,000
Oregon 4.75% - 9.9% Yes Federal $20k No sales tax
Pennsylvania 3.07% flat plus local Earned Income Tax (EIT) 1%-3%+ No Federal $20k $100,000
Rhode Island 3.75% - 5.99% Yes Federal $20k $100,000
South Carolina 0% - 6.4% (post-2024 reduction) Yes Federal $20k $100,000
South Dakota None No Federal $20k $100,000
Tennessee None No Federal $20k $100,000
Texas None No Federal $20k $100,000
Utah 4.55% flat (2024) Yes Federal $20k $100,000
Vermont 3.35% - 8.75% Yes $600 $100,000
Virginia 2% - 5.75% Yes $600 $100,000
Washington None No Federal $20k $100,000
West Virginia 2.36% - 5.12% (post-2024 reductions) Yes Federal $20k $100,000
Wisconsin 3.5% - 7.65% Yes Federal $20k $100,000
Wyoming None No Federal $20k $100,000

All 50 states

AL Alabama Income tax · PTE election AK Alaska No income tax · No PTE AZ Arizona Income tax · PTE election AR Arkansas Income tax · PTE election CA California Income tax · PTE election CO Colorado Income tax · PTE election CT Connecticut Income tax · PTE election DE Delaware Income tax · PTE election FL Florida No income tax · No PTE GA Georgia Income tax · PTE election HI Hawaii Income tax · PTE election ID Idaho Income tax · PTE election IL Illinois Income tax · PTE election IN Indiana Income tax · PTE election IA Iowa Income tax · PTE election KS Kansas Income tax · PTE election KY Kentucky Income tax · PTE election LA Louisiana Income tax · PTE election ME Maine Income tax · PTE election MD Maryland Income tax · PTE election MA Massachusetts Income tax · PTE election MI Michigan Income tax · PTE election MN Minnesota Income tax · PTE election MS Mississippi Income tax · PTE election MO Missouri Income tax · PTE election MT Montana Income tax · PTE election NE Nebraska Income tax · PTE election NV Nevada No income tax · No PTE NH New Hampshire No income tax · No PTE NJ New Jersey Income tax · PTE election NM New Mexico Income tax · PTE election NY New York Income tax · PTE election NC North Carolina Income tax · PTE election ND North Dakota Income tax · PTE election OH Ohio Income tax · PTE election OK Oklahoma Income tax · PTE election OR Oregon Income tax · PTE election PA Pennsylvania Income tax · No PTE RI Rhode Island Income tax · PTE election SC South Carolina Income tax · PTE election SD South Dakota No income tax · No PTE TN Tennessee No income tax · No PTE TX Texas No income tax · No PTE UT Utah Income tax · PTE election VT Vermont Income tax · PTE election VA Virginia Income tax · PTE election WA Washington No income tax · No PTE WV West Virginia Income tax · PTE election WI Wisconsin Income tax · PTE election WY Wyoming No income tax · No PTE

Run the numbers in our calculators

Threshold facts are only the start. Use the S-Corp Election Calculator to test reasonable-comp splits against state rates, the Income Tax Pipeline to model federal + state liabilities together, and the Reseller Profit Calculator for 1099-K-affected resale operations.

About this reference

Each state page covers six axes: state income / franchise / gross-receipts tax structure, pass-through entity tax election availability (SALT cap workaround under TCJA), 1099-K state reporting threshold (state-imposed lower thresholds where applicable), sales tax economic nexus for remote sellers (post-Wayfair), LLC formation and annual reporting fees, and state estimated tax safe-harbor rules. Where a state has no statewide rule on a given axis (e.g., the nine no-income-tax states), we say so explicitly. Primary sources include state Departments of Revenue, the IRS, the Multistate Tax Commission, the AICPA PTE Election tracker, and the Sales Tax Institute economic nexus state guide.

Maintained by Vincent Couey, CeoCult editor. Annual reverification is on the operator queue; each page's "Verified" badge shows the date of last primary-source review.

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