Skip to content
Independent money guidance
Clear Money Guide
Start here
Menu

State Taxation of Trust Income by State (2026)

Updated October 5, 2026. Quick answer: Some states in the table below tax no trust income, and most of the rest decide whether a trust is a resident of the state by who created it, who runs it or who benefits from it, which is why the same trust can face different rules in different states. Each row links to that state’s own page, which quotes its tax agency or legislature.

Form 1041 (estate and trust income tax return), read line by line: Form 1041 lines 1 to 3, Form 1041 lines 4 to 9, Form 1041 lines 18 to 22 and Form 1041 lines 23 to 30.

Trust income, state by state

StateHow trust income is treatedRate or limit
FloridaNo income tax; corporate tax reaches only entitiesNo trust rate printed
TexasNo income tax; constitution bars itNo rate
TennesseeNot taxed; Hall tax repealedNo tax; repealed 2021
WashingtonNo income tax; individuals only from 2028No tax today; 9.9% from 2028
PennsylvaniaTaxed; resident trust test is settlor residence3.07% flat (2025)
IllinoisTaxed; resident test is grantor domicile4.95% flat, 1.5% replacement tax
CaliforniaTaxed; resident trustee or beneficiary test1.00% to 12.30% (2025)
New YorkTaxed; resident trust test is grantor domicile4% to 10.90% (2025)
New JerseyTaxed; resident test is settlor domicile.014 to .1075 (2025)
MassachusettsTaxed; beneficiary, settlor and trustee tests5.00% plus 4% surtax (2025)
ArizonaTaxed; resident trust test is fiduciary residence2.5% flat (2025)
North CarolinaTaxed; resident beneficiary or NC-source income4.25% flat (2025)
GeorgiaTaxed; resident fiduciary rule, no settlor test stated5.19% (2025)
VirginiaTaxed; resident test is creator’s domicile2% to 5.75% graduated (2025)
OhioTaxed; resident trust test is settlor domicile plus beneficiary1.31287% to 3.125% (2025)
MichiganTaxed; resident trust test is grantor domicile4.25% flat (2025)
MinnesotaTaxed; resident test is grantor domicile5.35% to 9.85% (2025)
ColoradoTaxed; resident if administered in Colorado4.4% flat (2025)
MarylandTaxed; resident tests: will, grantor, administration2.00% to 6.50% (2025)
WisconsinTaxed; domicile of grantor or decedent decides residency3.50% to 7.65% (2025)
ConnecticutTaxed; resident test follows the funding person’s residency6.99% flat (2025)
OregonTaxed; resident if trustee or administration is in Oregon4.75% to 9.9% (2025)
South CarolinaTaxed; trust administered in South Carolina is resident0% to 6% (2025 schedule)
KentuckyTaxed; resident trusts taxed on undistributed income4% flat (2025)
AlabamaTaxed; resident and nonresident trusts file Form 412% to 5% (2025)
LouisianaTaxed; resident test by will domicile, governing law, situs3% flat (2025)
IndianaTaxed; resident if administered in Indiana3% flat (2025)
MissouriTaxed; resident test by creator domicile and beneficiary2.0% to 4.7% (2025)
UtahTaxed; resident if administered in Utah or Utah decedent4.5% flat (2025)
NevadaNo income tax; constitution bars itNo rate
South DakotaNo state income tax; no trust return describedNo rate
WyomingNo state income tax on individuals listed0% individual rate listed
New HampshireInterest and dividends tax repealed after 2024No rate
AlaskaNo individual income tax since 1980 repealNo rate
ArkansasTaxed; resident trusts file AR1002FUp to 3.9% (2025), 3.7% (2026)
DelawareTaxed; resident and nonresident trusts file FID-TAX2.20% to 6.60% (2025)
District of ColumbiaTaxed; resident trusts follow creator domicile, file D-414% to 10.75% (2025)
HawaiiTaxed; resident and nonresident trusts file Form N-401.40% to 8.25% (2025)
IdahoTaxed; resident if 3 of 5 Idaho ties5.3% flat (2025)
IowaTaxed; trusts file Form IA 10413.8% flat (2025)
KansasTaxed; administered in Kansas is resident5.2% to 5.58% (2025)
MaineTaxed; resident and nonresident trusts file Form 1041ME5.8% to 7.15% (2025)
MississippiTaxed; resident if administered in Mississippi0% on first $10,000, 4.4% above (2025)
MontanaTaxed; trusts file Form FID-34.7% to 5.9% (2025)
NebraskaTaxed; Form 1041N for resident and nonresident trusts2.46% to 5.20% (2025)
New MexicoTaxed; resident and nonresident trusts file Form FID-11.5% to 5.9% (2025)
North DakotaTaxed; resident and nonresident trusts both reached1.95% to 2.50% (2025)
OklahomaTaxed; resident trusts file Form 5130.25% to 4.75% (2025)
Rhode IslandTaxed; resident and nonresident trusts file RI-10413.75% to 5.99% (2025)
VermontTaxed; trusts file Form FIT-1613.35% to 8.75% (2025)
West VirginiaTaxed; resident and nonresident trusts file IT-1412.22% to 4.82% (2025); 2.11% to 4.58% (2026)

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: federal trust tax brackets.

Optional adviser-matching service

Review your investment plan alongside trust income

For U.S. investors with $250,000 or more in investable assets. If you also want advice for your own investment plan, request adviser introductions through WiserAdvisor.

This is investment-adviser matching, not legal advice or tax-return preparation.

WiserAdvisor is an independent matching service. Free to request, with no obligation to hire. Request up to three adviser introductions; a match is not guaranteed. Submitting its form allows calls, texts and emails from WiserAdvisor and up to three advisers.

Clear Money Guide may earn a referral payment for a qualifying completed form. Advisers pay for introductions; an introduction is not a Clear Money Guide recommendation.

Compare investment advisers

Opens on WiserAdvisor’s site in a new tab.

Sources

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.

See the adviser match on this page