2026 State Taxman

Most businesses in the propane industry are categorized as pass-through entities. As a result, a company’s profits/losses are reported on the business owner’s individual state income taxes. However, our industry is also home to companies that are categorized as corporations and are subject to state corporate tax rates.

A new year means new state tax laws went into effect.

According to the Tax Foundation, which is a nonprofit dedicated to shedding light on tax policy, the current individual income and corporate tax structure across the states is as follows:

2026 State Income Tax Structure

• 8 states have no income tax: AK, FL, NH, NV, SD, TN, TX, and WY.
• 15 states have a flat income tax: AZ, CO, GA, IA, ID, IL, IN, KY, LA, MI, MS, NC, PA, UT, and WA (applies only to capital gains).
• 27 states have a graduated income tax: AL, AR, CA, CT, DE, HI, KS, ME, MD, MA, MN MO, MT, ND, NE, NJ, NM, NY, OH, OK, OR, RI, SC, VA, VT, WI, and WI.

In 2026, the five states with the highest personal income tax rates, in order, are California (13.3%), Hawaii (11%), New York (10.9%), New Jersey (10.75%), and Oregon (9.9%).

2026 State Corporate Income Tax Structure

• 6 states have no corporate income tax: NV, OH, TX, SD, WA, and WY.
• 2 states have no corporate income or gross receipts tax: SD and WY.
• 44 states have either a flat or graduated corporate income tax structure: AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NM, NY, NC, ND, OK, OR, PA, RI, SC, TN, UT, VT, VA, WV, and WI.

In 2026, the five states with the highest corporate tax rates, in order, are New Jersey (11.5%), Minnesota (9.8%), Illinois (9.5%), Alaska (9.4%), and Maine (8.9%).

NPGA will continue to work with the state associations on legislation impacting the state business climate for all companies involved in the U.S. propane industry. For more information, contact NPGA’s Senior Director of State Affairs, Jacob Peterson.