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State Tax Changes for 2026: Return Changes by State | HelloBooks State return changes for 2025 and 2026, one page per state plus DC, each read from the state revenue department, with cross-state comparisons for preparers.

State returns · 2025 and 2026

State tax return changes by state

State returns changed for two reasons at once: legislatures cut or reshaped their own rates and credits, and each one decided separately how much of the new federal law to follow. Pick a state below for its page, or use the comparisons when a client files in more than one.

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Every state page in one table

The headline change on each state page and the agency it comes from. Open the page for the full source list.

State pageHeadline changeRead from
Alabama tax return changes for 2026Overtime exemption ended: June 30, 2025ADOR, OBBBA executive summary
Arizona tax return changes for 2026IRC conformity date: January 1, 2026Arizona Legislature, HB 4168 summary as enacted
Arkansas tax return changes for 2026Top marginal rate, 2025: 3.9%DFA, 2025 AR1000F and AR1000NR instructions
California tax return changes for 2026Specified IRC conformity date: January 1, 2025FTB, what’s new with tax forms
Colorado tax return changes for 2026Income tax rate, 2025: 4.4%Colorado DOR, Individual Income Tax Guide (January 2026)
Connecticut tax return changes for 2026Extra CT EITC with a qualifying child: $250CT DRS, resident income tax information
Delaware tax return changes for 2026Decoupling law: HB 255Delaware Division of Revenue, tax season updates
Florida tax return changes for 2026Florida IRC adoption: January 1, 2026Florida DOR, TIP 26C01-01 (adoption of 2026 Internal Revenue Code)
Georgia tax return changes for 2026Flat rate, 2026: 4.99%Georgia DOR, 2025 IT-511 booklet
Hawaii tax return changes for 2026Information return threshold, 2026 payments: $2,000Hawaii DOTAX, 2025 Form N-11 instructions
Idaho tax return changes for 2026Conformity to the 2025 federal law: Most provisionsIdaho State Tax Commission, latest update on filing 2025 income taxes
Illinois tax return changes for 2026Personal exemption, 2025: $2,850Illinois DOR, Informational Bulletin FY 2026-15
Indiana tax return changes for 2026Tips, overtime, vehicle loan deductions: 2026 onlyIndiana DOR, Income Tax Information Bulletin #128
Iowa tax return changes for 2026Flat rate, 2025: 3.8%Iowa DOR, tax year 2025 form changes
Kansas tax return changes for 2026Exemption allowance, joint: $18,320Kansas DOR, 2025 K-40 instructions
Kentucky tax return changes for 2026Flat rate, 2026: 3.5%Kentucky DOR, 2025 Form 740 instructions
Louisiana tax return changes for 2026Flat rate, 2025: 3%Louisiana DOR, 2025 IT-540 instructions (revised)
Maine tax return changes for 2026174A addback, large business, 2025: 100%Maine Revenue Services, One Big Beautiful Bill impacts on Maine
Maryland tax return changes for 2026New top rate: 6.5%Comptroller of Maryland, Tax Alert on 2025 legislative changes
Massachusetts tax return changes for 2026Personal income tax Code date: January 1, 2024Massachusetts DOR, TIR 26-4
Michigan tax return changes for 2026Tips and overtime deductions: 2026 to 2028Michigan Treasury, new deductions for qualified overtime compensation and qualified tips
Minnesota tax return changes for 2026Minnesota IRC date: May 1, 2026Minnesota DOR, tax law changes
Mississippi tax return changes for 2026Rate from 2030 (HB 1): 3%Mississippi DOR, 2025 legislation
Missouri tax return changes for 2026Capital gains subtraction: 100%Missouri DOR, tax year changes
Montana tax return changes for 2026Top rate, 2026: 5.65%Montana DOR, HB 337
Nebraska return changes for 2025 and 2026Top individual rate, 2025: 5.20%Nebraska DOR, tax rate chronology
Nevada business tax filing changes for 2026MBT and Commerce Tax moved to My Nevada Tax: December 8, 2025Nevada Department of Taxation, updates to My Nevada Tax
New Hampshire’s Interest and Dividends Tax is gone for 2025I&D Tax applies to: Periods before 2025NH DRA, repeal of the Interest and Dividends Tax now in effect
New Jersey return changes: the federal deductions stop at the borderNJ Child Tax Credit: Up to $1,000 per childNJ Division of Taxation, OBBBA and the Gross Income Tax
New Mexico return changes for preparersTop rate, 2025: 5.9%NM Taxation and Revenue, 2025 tax rate table
New York return changes for 2025 and 2026Empire State child credit, under 4: $1,000 per childNY Tax Department, summary of 2025 PIT and corporation tax changes
North Carolina returns after the federal law: mostly add-backsIndividual rate, 2025: 4.25%NCDOR, 2025 D-401 instructions
North Dakota return changes are light this yearChild care credit: 50% of first $1,000 per employeeND Tax Commissioner, individual income tax history
Ohio return changes for 2025Top rate, 2025: 3.125%Ohio Department of Taxation, what’s new
Oklahoma cuts its rate from 2026Top rate from 2026: 4.5%Oklahoma Tax Commission, summary of 2025 tax legislation
Oregon: connected for 2025, partly disconnected afterBonus depreciation: Disallowed from 2026Oregon DOR, 2025 Publication OR-17
Pennsylvania return changes for the 2026 seasonWorking Pennsylvanians Tax Credit: 10% of federal EITCPA Department of Revenue, Working Pennsylvanians Tax Credit
Rhode Island decouples from the business side of H.R. 1Decoupled for: Tax year 2025 and earlierRI Division of Taxation, emergency regulation 280-RICR-20-55-16
South Carolina: filing extended while conformity waitedTop rate, 2025: 6%SCDOR, statement on conformity and filing deadline (Mar 26, 2026)
South Dakota sales tax changes for 2026 and 2027State sales and use tax rate: 4.2%SD Department of Revenue, decrease in state tax rate (HB 1137)
Tennessee excise tax keeps the old bonus phase-downExcise bonus, 2025 assets: 40%TN Department of Revenue, Notice 25-36 bonus depreciation
Texas franchise tax for 2026 reportsNo tax due threshold, 2026: $2.65 millionTexas Comptroller, 2026 franchise tax report forms
Utah return changes for 2025 and 2026Income tax rate, 2025: 4.5%Utah State Tax Commission, 2025 tax updates webinar (Jan 2026)
Vermont conforms to the 2025 federal law, with exceptionsConformity act: Act 164 (H.933) of 2026Vermont Department of Taxes, OBBBA conformity
Virginia moves to a fixed conformity dateIRC conformity date: December 31, 2025Virginia Tax, Tax Bulletin 26-1
Washington’s capital gains tax gets a second tierRate above $1 million: 9.9%WA DOR, new tiered rates for capital gains tax
West Virginia cuts rates for 2026Top rate, 2026: 4.58%WV Tax Division, 2026 income tax rate cut
Wisconsin return changes: a wider bracket and no federal update4.4% bracket ends (single): $50,480Wisconsin DOR, 2025 tax update
Wyoming sales and use tax changes for 2026Use tax folded into sales tax chapter: July 1, 2026Wyoming Legislature, SF0079 enrolled act (2026)
DC decouples from the federal deductionsDC standard deduction (single): $15,000DC OTR, 2025 D-40 booklet

Each state page lists every state source it was read from.

The pages in this section

55 pages, grouped for review.

Comparisons across states

State pages, A to Z

Multi-state clients

A client with income in two states can face two different answers to the same federal change. Work out the resident state first, then check each source state for its own add-backs before allocating.

  • Keep a state column in the fixed asset ledger for any state that does not follow federal bonus depreciation.
  • Tell tipped and hourly clients that the federal deductions may not reduce their state bill.
  • Recheck pass-through entity tax elections now that the federal cap on individual SALT is higher.

What is and is not covered

A state appears here only when we could read its own revenue department, legislature or comptroller site. A missing state has not been reviewed yet, which does not mean nothing changed there.

FAQ

Frequently asked questions

Why does a state page cite only state sources?
State law decides the state return. Each page links to the revenue department, legislature or comptroller page it was read from, so your reviewer can check the wording directly.
Where is the overview of conformity to the federal law?
The conformity tracker at /cpa/tax-return-changes/obbba-state-conformity lists the states that published a position and compares the main add-backs.
Related

Keep exploring

All tax return changes

The full tracker for CPA and EA firms

State conformity to the One Big Beautiful Bill

Which states follow the 2025 federal law

Business return changes: 1065, 1120 and 1120-S

Forms 1065, 1120 and 1120-S, and what flows to them

1099, W-2 and information return changes

Thresholds, new boxes and state filing

US tax changes for 2025 and 2026

The plain-English summary for business owners

Sources

General information for tax professionals, not advice on a specific return. Check the current official instructions before filing.

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