State Tax on Dividends and Interest by State (2026)

Updated October 5, 2026. Quick answer: A few states in the table below tax no dividends or interest, most tax them as ordinary income at a flat or graduated rate, and nearly all of those add back other states’ municipal bond interest while exempting U.S. obligations. Each row links to that state’s own page, which quotes the state’s tax agency, legislature or constitution.

Dividends and interest, state by state

How to read the table

A rate is the figure printed in the state’s own document for the year shown on the state’s page. Where a state’s documents print no rule for a point, the state’s page says so instead of guessing.

Related: capital gains tax by state.

Sources

• Florida Constitution, Article VII (Online Sunshine, Florida Legislature): https://www.leg.state.fl.us/statutes/index.cfm?Mode=Constitution&Submenu=3&Tab=statutes
• Florida Statutes s. 199.133, Levy of nonrecurring tax (2026 Florida Statutes): http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0100-0199/0199/Sections/0199.133.html
• Texas Constitution, including amendments through the November 4, 2025 election (Texas Legislative Council): https://tlc.texas.gov/docs/legref/TxConst.pdf
• 86(R) H.J.R. No. 38, enrolled version (Texas Legislature): https://capitol.texas.gov/tlodocs/86R/billtext/html/HJ00038F.htm
• Hall Income Tax overview (Tennessee Department of Revenue): https://www.tn.gov/revenue/taxes/hall-income-tax.html
• Hall Income Tax: Due Date and Tax Rates (Tennessee Department of Revenue): https://www.tn.gov/revenue/taxes/hall-income-tax/due-date-and-tax-rates.html
• Hall Income Tax: Exemptions and Deductions (Tennessee Department of Revenue): https://www.tn.gov/revenue/taxes/hall-income-tax/exemptions-and-deductions.html
• Income tax (Washington Department of Revenue): https://dor.wa.gov/taxes-rates/income-tax
• Frequently asked questions about income tax (Washington Department of Revenue): https://dor.wa.gov/taxes-rates/income-tax/frequently-asked-questions-about-income-tax
• Engrossed Substitute Senate Bill 6346, session law (Washington State Legislature): https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bills/Session%20Laws/Senate/6346-S.SL.pdf
• Capital gains tax (Washington Department of Revenue): https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax
• Personal Income Tax (Pennsylvania Department of Revenue): https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/personal-income-tax
• PA Personal Income Tax Guide: Interest (Pennsylvania Department of Revenue): https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/interest
• PA Personal Income Tax Guide: Dividends (Pennsylvania Department of Revenue): https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/dividends
• 2025 Form IL-1040 Instructions (Illinois Department of Revenue): https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual/il-1040-instr.pdf
• Income Tax Rates (Illinois Department of Revenue): https://tax.illinois.gov/research/taxrates/income.html
• Schedule M Instructions, Other Additions and Subtractions for Individuals (Illinois Department of Revenue): https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual/il-1040-schedule-m-instr.pdf
• 2025 California 540 Forms & Instructions Personal Income Tax Booklet: https://www.ftb.ca.gov/forms/2025/2025-540-booklet.html
• Instructions for Form IT-201 (2025): https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf
• 2025 NJ-1040 Resident Return Instructions: https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf
• GIT-5 Nontaxable Investment Income (January 2026): https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git5.pdf
• Massachusetts Tax Rates (Mass.gov / Department of Revenue): https://www.mass.gov/info-details/massachusetts-tax-rates
• M.G.L. c. 62, section 2 (Massachusetts Legislature): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2
• 2025 Arizona Form 140 Resident Personal Income Tax Booklet (Arizona Department of Revenue): https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140Booklet.pdf
• A.R.S. 43-1022 Subtractions from Arizona gross income (Arizona Legislature): https://www.azleg.gov/ars/43/01022.htm
• 2025 Form D-400 Individual Income Tax Instructions (North Carolina Department of Revenue): https://www.ncdor.gov/2025-d-401-individual-income-tax-instructions/open
• N.C.G.S. 105-153.7 Individual income tax imposed (North Carolina General Assembly): https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.7.html
• 2025 Form IT-511 Individual Income Tax Booklet (Georgia Department of Revenue): https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download
• Important Tax Updates (Georgia Department of Revenue): https://dor.georgia.gov/taxes/important-tax-updates
• 2025 Resident Individual Income Tax Instructions, Form 760 (Virginia Department of Taxation): https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf
• Code of Virginia 58.1-320. Imposition of tax (Virginia General Assembly): https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-320/
• Subtractions from Income (Virginia Department of Taxation): https://www.tax.virginia.gov/subtractions
• 2025 Ohio IT 1040 Individual Income Tax Return Instructions (Ohio Department of Taxation): https://tax.ohio.gov/static/forms/ohio_individual/individual/2025/it1040-booklet.pdf
• Ohio Revised Code Section 5747.02 (Ohio Legislative Service Commission): https://codes.ohio.gov/ohio-revised-code/section-5747.02
• Ohio Individual Income Tax Rates (Ohio Department of Taxation): https://tax.ohio.gov/individual/resources/annual-tax-rates
• 2025 Michigan Individual Income Tax Return Booklet (MI-1040): https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/MI-1040-Book.pdf
• 2025 Form M1 Instructions: https://www.revenue.state.mn.us/sites/default/files/2026-10/m1-inst-25.pdf
• Income Tax Rates and Brackets: https://www.revenue.state.mn.us/minnesota-income-tax-rates-and-brackets
• Net Investment Income Tax (NIIT): https://www.revenue.state.mn.us/net-investment-income-tax-niit
• 2025 Colorado Individual Income Tax Booklet (Book 104): https://tax.colorado.gov/sites/tax/files/documents/Book104_2025.pdf
• 2025 DR 0104AD Subtractions from Income Schedule: https://tax.colorado.gov/sites/tax/files/documents/DR0104AD_2025.pdf
• 2025 Maryland Resident Tax Forms and Instructions booklet: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf
• Md. Code, Tax-General 10-105 (Maryland income tax rates): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=10-105&enactments=false
• Tax Rates (Wisconsin Department of Revenue): https://www.revenue.wi.gov/Pages/FAQS/pcs-taxrates.aspx
• 2025 Schedule SB Instructions: https://www.revenue.wi.gov/TaxForms2025/2025-ScheduleSB-Inst.pdf
• Wis. Stat. 71.05 Income computation (exempt income, additions): https://docs.legis.wisconsin.gov/statutes/statutes/71/i/05
• Wis. Stat. 71.05(6)(b) Subtractions: https://docs.legis.wisconsin.gov/statutes/statutes/71/i/05/6/b
• 2025 Form 1 Instructions: https://www.revenue.wi.gov/TaxForms2025/2025-Form1-Inst.pdf
• 2025 Form CT-1040 Connecticut Resident Income Tax Return Instructions (Rev. 12/25): https://portal.ct.gov/-/media/drs/forms/2025/income/2025-ct-1040-instructions_1225.pdf
• Connecticut General Statutes Chapter 229, Income Tax (Secs. 12-700, 12-701): https://www.cga.ct.gov/current/pub/chap_229.htm
• Publication OR-17, Full-Year Resident Oregon Individual Income Tax Guide (2025, Rev. 01-29-26): https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf
• Oregon Revised Statutes Chapter 316, Personal Income Tax (ORS 316.056, 316.680): https://www.oregonlegislature.gov/bills_laws/ors/ors316.html
• 2025 Tax rate charts (Chart S and Chart J): https://www.oregon.gov/dor/programs/individuals/Documents/Part-year and nonresident tax rate charts.pdf
• 2025 SC1040 Individual Income Tax Form and Instructions (IIT Packet): https://dor.sc.gov/sites/dor/files/forms/IITPacket_2025.pdf
• South Carolina Code of Laws Title 12 Chapter 6 (Secs. 12-6-510, 12-6-1120): https://www.scstatehouse.gov/code/t12c006.php
• Tax Legislative Update for 2025 (June 2025): https://dor.sc.gov/sites/dor/files/Documents/Policy Manuals/Legislative Update for 2025.pdf
• 2025 Form 740 Packet Instructions (Kentucky Department of Revenue): https://revenue.ky.gov/Forms/740 Packet Instructions.pdf
• 2025 Regular Session Chapter 1 (HB 1), KRS 141.020 amended (Kentucky General Assembly): https://apps.legislature.ky.gov/law/acts/25RS/documents/0001.pdf
• 2025 Form 40 Booklet, Schedule B instructions (Alabama Department of Revenue): https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf
• What is Alabama’s Individual Income Tax Rate? (Alabama Department of Revenue): https://www.revenue.alabama.gov/faqs/what-is-alabamas-individual-income-tax-rate/
• What interest income is exempt from Alabama taxation? (Alabama Department of Revenue): https://www.revenue.alabama.gov/faqs/what-interest-income-is-exempt-from-alabama-taxation/
• 2025 IT-540 Instructions (Louisiana Department of Revenue): https://dam.ldr.la.gov/taxforms/IT540i-WEB-2025-Revised-7-26.pdf
• What are the individual income tax rates and brackets? (Louisiana Department of Revenue): https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/what-are-the-individual-income-tax-rates-and-brackets/
• Rates, Fees & Penalties: Income tax rates: https://www.in.gov/dor/resources/tax-rates-and-reports/rates-fees-and-penalties/
• 2025 IT-40 Full-Year Resident Income Tax Booklet: https://forms.in.gov/Download.aspx?id=16915
• 2025 MO-1040 Individual Income Tax Return Instructions: https://dor.mo.gov/forms/MO-1040 Instructions_2025.pdf
• 2025 Tax Legislative Changes: https://dor.mo.gov/taxation/individual/tax-types/income/year-changes/documents/2025-Tax-Legislative-Changes.pdf
• RSMo Section 143.121 Missouri adjusted gross income: https://revisor.mo.gov/main/OneSection.aspx?section=143.121
• Utah Code 59-10-104 Tax basis, tax rate, exemption (effective 1/1/2026): https://le.utah.gov/xcode/Title59/Chapter10/C59-10-S104_2026050620260506.html
• S.B. 60 Income Tax Rate Amendments (2026 General Session, enrolled): https://le.utah.gov/Session/2026/bills/enrolled/SB0060.pdf
• 2025 TC-40 Utah Individual Income Tax Instructions: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf
• Constitution of the State of Nevada, Article 10 (Nevada Legislature, Rev. 4/15/2026): https://www.leg.state.nv.us/const/nvconst.html
• South Dakota Department of Revenue, Taxes (individuals): https://dor.sd.gov/individuals/taxes/
• Building Wyoming’s Tax Structure for the 21st Century, Report of the Tax Reform 2000 Committee: https://wyoleg.gov/InterimCommittee/2020/03-2020052615-01TaxReform2000ExecSummary.pdf
• State of Wyoming, About Wyoming: https://www.wyo.gov/about-wyoming
• NH RSA Chapter 77 (Taxation of Incomes): Repealed: https://www.gencourt.state.nh.us/rsa/html/V/77/77-mrg.htm
• 2023 Laws chapter 79 (HB 2): sections 79:85 to 79:88, RSA 77:1 rates and repeal date: https://gc.nh.gov/lba/budget/operating_budgets/2024-2025/House_Finance/HB 2 Chapter Law.pdf
• Alaska Department of Revenue Tax Division, Personal Income: https://tax.alaska.gov/programs/programs/index.aspx?60510
• Alaska Statutes, Title 43, Chapter 20 (Net Income Tax): https://www.akleg.gov/basis/statutes.asp#43.20
• 2025 AR1000F Arkansas Individual Income Tax Instructions: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2025_AR1000F_Instructions.pdf
• State of Arkansas Indexed Tax Brackets, Tax Year 2025: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2025_Indexed_Tax_Brackets.pdf
• Act 2 of the First Extraordinary Session of 2026 (Senate Bill 1): https://arkleg.state.ar.us/Acts/FTPDocument?path=/ACTS/2026S1/Public/&file=2.pdf&ddBienniumSession=2025/2025S1
• 2025 Delaware Personal Income Tax Resident Instructions: https://revenue.delaware.gov/wp-content/uploads/sites/141/2026/01/PIT-RES-Instructions-2025.pdf
• 30 Del. C. section 1102, Imposition and rate of tax: https://delcode.delaware.gov/title30/c011/sc01/index.html
• 2025 D-40 Individual Income Tax Booklet: https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2025_D-40_Booklet.pdf
• D.C. Code section 47-1806.03, Tax on residents and nonresidents, imposition and rates: https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.03
• 2025 Form N-11 Individual Income Tax Resident Booklet and Instructions: https://files.hawaii.gov/tax/forms/2025/n11ins.pdf
• HRS section 235-51, Tax imposed on individuals; rates: https://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0235/HRS_0235-0051.htm
• 2025 Idaho Individual Income Tax Booklet (EIN00046): https://tax.idaho.gov/forms/EIN00046/EIN00046_12-31-2025.pdf
• Idaho Code section 63-3024, Individuals’ tax and tax on estates and trusts: https://legislature.idaho.gov/statutesrules/idstat/title63/t63ch30/sect63-3024/
• House Bill 589 (2026) bill text: https://legislature.idaho.gov/wp-content/uploads/sessioninfo/2026/legislation/H0589.pdf
• House Bill 589 (2026) status page, fetched 2026-10-05: https://legislature.idaho.gov/sessioninfo/2026/legislation/H0589/
• 2025 IA 1040 Schedule 1 Expanded Instructions: https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/ia-1040-instructions/ia-1040-schedule-1
• IA 1040 Line 5: Iowa Tax (2025 instructions): https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/ia-1040-instructions/line-5-iowa-tax
• IA 1040 Intro 1: What’s New for 2025: https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/ia-1040-instructions/intro-1-whats-new
• 2025 Kansas Individual Income Tax Booklet (IP25): https://www.ksrevenue.gov/pdf/ip25.pdf
• 2025 Maine Individual Income Tax Rates: https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/rate_sched_2025.pdf
• 2025 Form 1040ME Instructions: https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/instr_2025.pdf
• 2025 Mississippi Income Tax Instructions (Form 80-100-25): https://www.dor.ms.gov/sites/default/files/Individual/80100251.pdf
• Mississippi DOR Individual Income Tax FAQ: https://www.dor.ms.gov/individual/individual-income-tax-faq
• 2025 Montana Form 2 Instructions: https://revenue.mt.gov/files/Forms/2025/2025-Form-2-Instructions.pdf
• 2025 Montana Tax Tables and Deductions: https://revenue.mt.gov/individual/2025-montana-tax-tables-and-deductions
• HB337: 2026-2027 Montana Individual Income Tax Changes: https://revenue.mt.gov/news/recent-news-updates/hb337-2026-2027-montana-individual-income-tax-changes
• 2025 Montana Form 2 Changes: https://revenue.mt.gov/files/Forms/2025/2025-Form-2-Changes.pdf
• 2025 Nebraska Individual Income Tax and Amended Return Booklet (8-307-2025): https://revenue.nebraska.gov/sites/default/files/doc/tax-forms/2025/f_1040n_booklet_2025.pdf
• Nebraska Tax Rate Chronologies: https://revenue.nebraska.gov/sites/default/files/doc/research/ne_tax_rate_chronology.pdf
• 2025 PIT-ADJ Instructions: Schedule of Additions, Deductions, and Exemptions: https://www.tax.newmexico.gov/wp-content/uploads/2026/01/2025-PIT-ADJ-Instructions.pdf
• House Bill 252 (2024), as introduced: https://www.nmlegis.gov/Sessions/24 Regular/bills/house/HB0252.PDF
• House Bill 252 (2024), HTRC/HB 252/a text posted in the final folder: https://www.nmlegis.gov/Sessions/24 Regular/final/HB0252.pdf
• 2025 North Dakota Individual Income Tax Booklet: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2025-iit/2025-individual-income-tax-booklet.pdf
• Individual Income Tax (tax rate page): https://www.tax.nd.gov/individual/income-tax
• North Dakota Century Code chapter 57-38 (Income Tax): https://ndlegis.gov/cencode/t57c38.pdf
• 2025 Oklahoma Resident Individual Income Tax Forms and Instructions (Form 511 packet): https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-Pkt.pdf
• Oklahoma Statutes Title 68, section 2355 (Tax imposed: Classes of taxpayers), extract of the Title 68 file: https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.rtf
• 2025 Rhode Island Tax Rate Schedule: https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-10/2025 RI Tax Tables_Full_d.pdf
• R.I. Gen. Laws 44-30-12 Rhode Island income of a resident individual: http://webserver.rilegislature.gov/Statutes/TITLE44/44-30/44-II/44-30-12.htm
• 2025 RI-1040 Forms and Instructions: https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-11/2025 1040R Instructions_d.pdf
• 2025 Vermont Tax Rate Schedules: https://tax.vermont.gov/sites/tax/files/documents/TaxRateSched-2025.pdf
• 2025 Vermont Income Tax Booklet: https://tax.vermont.gov/sites/tax/files/documents/Income-Booklet-2025.pdf
• 32 V.S.A. 5811 Definitions: https://legislature.vermont.gov/statutes/section/32/151/05811
• 2025 West Virginia Tax Rate Schedules: https://tax.wv.gov/Documents/PIT/2025/it140.TaxRateSchedules.2025.pdf
• 2025 West Virginia Personal Income Tax Forms and Instructions (IT-140): https://tax.wv.gov/Documents/PIT/2025/it140.PersonalIncomeTaxFormsAndInstructions.2025.pdf
• W. Va. Code 11-21-4j Rate of tax, taxable years beginning on and after January 1, 2026: https://code.wvlegislature.gov/11-21-4j/
• 2026 Income Tax Rate Cut: https://tax.wv.gov/Individuals/Pages/PersonalIncomeTaxReductionBill.aspx

Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.