# State tax verification — 2026 planning model

Checked 2026-09-04 against primary sources. Scope: full-year resident, single or married filing jointly, ordinary W-2 compensation and taxable brokerage investments. Figures from 2025 are explicitly provisional for 2026. This is implementation research, not a statement that every rule below is implemented.

## New York and NYC

2026 marginal rates (percent): `3.9, 4.4, 5.15, 5.4, 5.9, 6.85, 9.65, 10.3, 10.9`.

Single upper limits: `8500,11700,13900,80650,215400,1077550,5000000,25000000,Infinity`.
Joint upper limits: `17150,23600,27900,161550,323200,2155350,5000000,25000000,Infinity`.

Source: [Tax Law 601(a)(1)(B)(vii), (c)(1)(B)(vii)](https://www.nysenate.gov/legislation/laws/TAX/601). Use statutory base amounts when matching official whole-dollar computations; integrating marginal brackets can differ by less than a dollar because statutory bases are rounded.

2026 supplemental tax: section **601(d-5)**. Let A = NY adjusted gross income, T = NY taxable income, B = ordinary NY table tax. If A <= 107650, supplemental tax = 0. Otherwise use these numeric rows, selected by T > lower and T <= upper:

| Status | Lower T | Upper T | Recapture base | Increment | Subtract from A |
| --- | ---: | ---: | ---: | ---: | ---: |
| single | 80650 | 215400 | 0 | 567 | 107650 |
| single | 215400 | 1077550 | 567 | 2047 | 215400 |
| single | 1077550 | 5000000 | 2614 | 30172 | 1077550 |
| single | 5000000 | 25000000 | 32786 | 32500 | 5000000 |
| joint | 27900 | 161550 | 0 | 333 | 107650 |
| joint | 161550 | 323200 | 333 | 807 | 161550 |
| joint | 323200 | 2155350 | 1140 | 3071 | 323200 |
| joint | 2155350 | 5000000 | 4211 | 60350 | 2155350 |
| joint | 5000000 | 25000000 | 64561 | 32500 | 5000000 |

Supplement = base + increment × min(50000, A − last column) / 50000. For low T (single <= 80650 or joint <= 27900), supplement = (T × rate − B) × min(50000,A − 107650)/50000, rate 0.059 single or 0.054 joint. If A > 25000000, total NY tax before credits becomes T × 0.109. Source: [601(d-5)](https://www.nysenate.gov/legislation/laws/TAX/601).

Standard deductions on the current published **2025** page: single $8,000, joint $16,050. The app's $8,500/$17,000 were incorrect. [NY standard deductions](https://www.tax.ny.gov/pit/file/standard_deductions.htm). NYC uses NY taxable income for full-year city residents; do not apply a different city standard deduction. Existing city bracket rates remain appropriate, but credits are additional. [2025 IT-201 instructions, line 47](https://www.tax.ny.gov/forms/current-forms/it/it201i.htm), [2026 withholding changes: NYC unchanged](https://www.tax.ny.gov/bus/wt/rate.htm).

These NY deductions can be carried into 2026 under current [Tax Law 614(f)](https://www.nysenate.gov/legislation/laws/TAX/614), which fixes post-2017 deductions using the 2013–2017 adjustments rather than new annual indexing. This is an inference from the statute plus the published deduction table.

## Minnesota

2026 rates: 5.35%, 6.8%, 7.85%, 9.85%. Single thresholds: 33310,109430,203150. Joint: 48700,193480,337930. Standard deduction: single 15300; joint 30600. Dependent exemption: 5300, subject to its own phaseout. [2026 announcement](https://www.revenue.state.mn.us/mndor-pp/21641).

Standard deduction D is reduced by `min(0.8*D, 0.03*max(0,min(A,337800)-244400) + 0.10*max(0,A-337800))`; A is adjusted gross income. At A > 1107750 the reduction is 80% in all cases. Indexed thresholds: [2026 inflation PDF](https://www.revenue.state.mn.us/sites/default/files/2025-12/inflation-adjusted-amounts-2026.pdf). Formula: [290.0123 subdivision 5](https://www.revisor.mn.gov/statutes/cite/290.0123).

Minnesota imposes a separate 1% tax on net investment income exceeding $1m. This tests investment income, not total AGI. [MN NIIT](https://www.revenue.state.mn.us/net-investment-income-tax-niit).

## California

Use **2025 provisional** income tax brackets/deductions until 2026 FTB annual values are available. Published standard deductions are 5706 single, 11412 joint. Ordinary marginal rates top out at 12.3%; add behavioral health services tax of 1% on taxable income over $1m once, for either filing status. Existing single code's 13.3% top bracket plus separate 1% surcharge double counted the surcharge. Personal exemption credits are 153 single/306 joint, plus 475 per dependent, subject to AGI limits. [2025 Form 540](https://www.ftb.ca.gov/forms/2025/2025-540-booklet.html), [2025 inflation values](https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/2025/10.html).

CA does not allow the federal HSA deduction or exclude employer HSA contributions. Add those back; HSA interest/dividends also need state income treatment. [2025 Schedule CA instructions](https://www.ftb.ca.gov/forms/2025/2025-540-ca-instructions.html), [FTB publication 1001](https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf). Standard deductible traditional IRA contributions generally conform; do not add all IRA deductions back merely because HSA contributions do not conform. Catch-up/conformity differences require separate checks for older taxpayers.

2025 provisional CA exemption-credit phaseout: set R = `6*ceil(max(0,federalAGI-threshold)/2500)`, threshold 252203 single or 504411 joint. Credit = `people*max(0,153-R) + dependents*max(0,475-R)` for under-65/nonblind taxpayers, people 1 single/2 joint. [Form 540 line 32 worksheet](https://www.ftb.ca.gov/forms/2025/2025-540-booklet.html). The surcharge's current display name is “Behavioral Health Services Tax,” effective 2025.

Capital gains receive ordinary rates, not the federal preferential rates. [FTB capital gains](https://www.ftb.ca.gov/file/personal/income-types/capital-gains-and-losses.html). 2026 employee SDI = 1.3% of SDI wages, without a wage cap, and is material to spendable pay. [EDD rates](https://edd.ca.gov/en/Payroll_Taxes/Rates_and_Withholding), [cap elimination](https://edd.ca.gov/en/disability/Contribution_Rates_and_Benefit_Amounts/).

## New Jersey

The $1000/$2000 amounts are personal exemptions, not standard deductions. NJ does not allow federal IRA deductions. [NJ deductions and exemptions](https://www.nj.gov/treasury/taxation/njit13.shtml). Qualified traditional 401(k) employee contributions receive deferral; SIMPLE/SEP/SARSEP contributions generally do not. [NJ wages](https://www.nj.gov/treasury/taxation/njit5.shtml).

Employee salary reductions for cafeteria-plan health insurance/FSA benefits remain NJ taxable wages. Apply the same nonconformity to employee HSA salary reductions; direct HSA contributions are not a listed NJ deduction. NJ's explicit deduction for Archer MSAs is a different account type. [TB-39(R)](https://nj.gov/treasury/taxation/taxamnesty/treasury/taxation/pdf/pubs/tb/tb39r.pdf), [NJ allowed deductions](https://www.nj.gov/treasury/taxation/njit13.shtml). Dedicated current NJ HSA guidance was not found; employer-paid HSA treatment and HSA investment earnings remain a verification limitation for this research. An introduced HSA-conformity bill is not enacted law.

Net capital losses cannot offset salary/interest/dividends in different NJ income categories; do not subtract the federal $3000 capital-loss deduction from NJ wages. NJ gains may also differ from federal gains due to basis and carryovers; a single federal net-gain input is an approximation. [NJ capital gains](https://www.nj.gov/www.nj.gov/treasury/taxation/njit9.shtml).

## Illinois

2026 personal exemption 2925 per person is confirmed; disallow entirely when federal AGI exceeds 250000 single or 500000 joint. These are exemptions, not standard deductions. [Illinois official FAQ](https://tax.illinois.gov/questionsandanswers/answer.851.html).

## Remaining model boundaries

Do not describe state numbers as a completed tax return. State itemized deductions, state AMT, state credits (including NY/NYC household/school/child credits), dependent exemption phaseouts, NJ property tax/medical deductions, multi-state residency/work credits, state-specific basis/carryovers, tax-exempt bonds, and employee state payroll programs need explicit handling or visible scope notes. FL/TX zero personal income tax profiles were not independently refreshed in this research pass.