State Tax vs Federal Tax Bracket Comparison 2027
Compare your effective state + federal combined tax bracket for 2027 across all 50 states + DC — find total tax burden, marginal rate, and tax-free state savings.
Federal 2027 Brackets (OBBB-extended)
Single: 10% to $11.6k, 12% to $47k, 22% to $100k, 24% to $192k, 32% to $244k, 35% to $609k, 37% above. Joint brackets double. OBBB (P.L. 119-21) extended TCJA bracket structure permanently.
State Income Tax Rates 2027
9 no-income-tax states: AK, FL, NV, SD, TX, WA, WY, TN, NH (NH taxes only investment income, sunset 2027). Highest: CA 13.3% top, NY/NJ ~10.9%, OR 9.9%.
State Reciprocity Tricks
Live PA, work NJ: PA-NJ reciprocity = no NJ tax. Live KY, work IN: KY only. Live OH, work MI: OH only. 14 state pairs with reciprocity. Saves 4-6% per year.
Marginal vs Effective Tax Rate
Marginal = rate on NEXT dollar earned. Effective = total tax / total income. Always lower than marginal because of progressive brackets. Use marginal for decisions (overtime, bonus, Roth conversion).
Source: irs.gov 2027 inflation adjustments, taxfoundation.org state tables. Last updated: May 2026.
Frequently Asked Questions
Why is my marginal rate higher than I thought?
You're including state tax on top of federal. CA + 24% federal = 33.3% marginal — most don't realize. Also: SS/Medicare 7.65% adds to wage marginal.
Is moving to tax-free state worth it?
Depends on income. At $80k income: CA save ~$7k/yr vs TX. At $200k: save ~$15k. At $1M: save ~$130k. High earners benefit most from moves.
What about local taxes?
NYC adds 3-4% city tax. Philadelphia 3.79%. SF doesn't but LA, Detroit, Cleveland do. Could push effective rate 2-4% higher. Often forgotten in state comparisons.