Are Trump Accounts Taxable in Your State? All 50 States and DC

Federal law does not tax a Trump Account while the money stays in it, and an employer can put in up to $2,500 a year without the employee paying tax on it. Each state decides whether its own income tax does the same. For tax year 2026, as of September 13, 2026:

• 34 follow the federal treatment: 33 states and the District of Columbia. Arizona and California name the accounts in their law; the rest follow through tax codes that start from federal income and include the 2025 law that created the accounts.
• Alabama partly follows: growth in the account is not taxed, but employer contributions are.
• 4 do not follow: Massachusetts, Pennsylvania and Wisconsin say so, and South Carolina's tax code still stops at December 31, 2024.
• 3 have not said: Arkansas, Mississippi and New Jersey, which compute income under their own rules.
• 9 have no personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

Lists published earlier this year counted California, Hawaii and Kentucky among the states that would tax these accounts. All three changed their laws in 2026 to follow federal treatment, and Minnesota, which had not conformed, followed in May. Many states that tie their tax code to a fixed federal date also updated it this year; each row below names the law.

The law behind each row

Each entry names the statute, enacted bill or tax agency guidance the row rests on, with a link to it.

Alabama Partly follows

The Alabama Department of Revenue treats the account like an IRA: section 530A is “tied to federal” for the taxation of distributions (Code of Ala. §40-18-25.1(d)). The employer-contribution rules, sections 128 and 139J, are listed as not tied to federal law, so Alabama does not leave those contributions out of income.

Source: Alabama Department of Revenue, OBBBA analysis and tax provisions, executive summary (updated November 10, 2025)

Alaska No income tax

The Department of Revenue says Alaska “currently does not have an individual income tax.”

Source: Alaska Department of Revenue, Tax Division: Personal Income Tax

Arizona Follows (says so)

H.B. 4168 (Laws 2026, chapter 140, signed June 13, 2026) conforms Arizona to the Internal Revenue Code as of January 1, 2026. For tax years from 2026 it also subtracts from Arizona income, to the extent not already excluded, “the amount of a distribution from a Trump Account.”

Source: Arizona Legislature, enacted fact sheet for H.B. 4168/S.B. 1861 (June 23, 2026)

Arkansas Not determined

Arkansas writes its own income rules and adopts federal code sections one at a time; its instructions name the sections it has adopted, such as sections 72 and 117. We found no Arkansas law or Department of Finance and Administration guidance on Trump Accounts.

Sources: Arkansas DFA, 2025 AR1000F and AR1000NR instructions; Arkansas DFA, Individual Income Tax: What's New

California Follows (says so)

SB 180 (Statutes of 2026, chapter 85, approved July 13, 2026) applies sections 530A, 128 and 139J for tax years from 2026 (Revenue and Taxation Code §§17151.1, 17151.2 and 17509.5). Before it, California did not follow these provisions. California figures its additional tax on distributions at 2.5% instead of the federal rate and does not apply the federal rules on distributions of excess contributions or on trustee selection.

Source: SB 180, chaptered text

Colorado Follows (tax code)

Colorado income tax “is based generally on federal taxable income.” The Department of Revenue's January 2026 update lists the new additions for 2026, such as overtime pay, and none for Trump Accounts.

Sources: Colorado DOR, Individual Income Tax Guide; Colorado DOR, January 2026 tax policy updates

Connecticut Follows (tax code)

Connecticut defines the Internal Revenue Code as the federal code “as from time to time amended,” so federal changes carry into its income tax unless the state acts. We found no Connecticut action on these accounts.

Source: Conn. Gen. Stat. §12-701(a)(16)

Delaware Follows (tax code)

Delaware gives tax terms their federal meaning and reads federal references as the Internal Revenue Code “and amendments thereto.”

Source: 30 Del. C. §1101

District of Columbia Follows (tax code)

The D.C. Code applies Internal Revenue Code provisions “on the same dates that they are effective for federal tax purposes.”

Source: D.C. Code §47-1801.04(28)

Florida No income tax

Florida has no personal income tax. Its constitution caps any tax on the income of natural persons at amounts that could be credited against a similar federal or state tax.

Source: Florida Constitution, Article VII, Section 5

Georgia Follows (tax code)

HB 1199 (Act 375, signed March 20, 2026) adopts federal law enacted on or before January 1, 2026. Georgia sets aside a list of sections, including the federal deductions for tips, overtime and car-loan interest and bonus depreciation; sections 128, 139J and 530A are not on the list.

Source: HB 1199, as passed (Act 375)

Hawaii Follows (tax code)

Act 35 of 2026 (HB 2329, CD1) moves Hawaii's conformity to the Internal Revenue Code as of December 31, 2025, for tax years beginning after that date, with no exception for these accounts.

Sources: HB 2329 CD1 (Act 35), bill text; HB 2329 status

Idaho Follows (tax code)

H.B. 559 (2026) adopts the Internal Revenue Code in effect on January 1, 2026 (Idaho Code §63-3004). Its exceptions do not include these accounts.

Source: H.B. 559 (2026)

Illinois Follows (tax code)

Illinois income starts from federal adjusted gross income, and federal law applies as in effect for the tax year. None of the state's additions covers these accounts.

Sources: 35 ILCS 5/203; 35 ILCS 5/102

Indiana Follows (tax code)

SEA 243 (2026) updates Indiana's Internal Revenue Code date to January 1, 2026 (IC 6-3-1-11). The Department of Revenue's 2026 synopsis lists no exception for these accounts.

Source: Indiana DOR, 2026 legislative synopsis

Iowa Follows (tax code)

For tax years from 2020, Iowa reads the Internal Revenue Code “as amended.”

Source: Iowa Code §422.3(5)

Kansas Follows (tax code)

Kansas applies the federal code “as the same may be or become effective at any time, or from time to time, for the taxable year.”

Source: K.S.A. 79-32,109

Kentucky Follows (tax code)

HB 757 (2026) moves Kentucky's conformity to the Internal Revenue Code as of December 31, 2025, for tax years from 2026. The bill as first filed would have added employer contributions back to Kentucky income; the enacted version does not.

Sources: HB 757 (2026), enacted text; HB 757 as introduced

Louisiana Follows (tax code)

Louisiana adjusted gross income is the adjusted gross income “that is reportable on the individual's federal income tax return.”

Source: La. R.S. 47:293

Maine Follows (tax code)

Maine's 2026 law updates its Internal Revenue Code references through December 31, 2025, for tax years from 2025 (P.L. 2025, c. 650, Part K).

Source: Maine Revenue Services, 2026 legislative changes

Maryland Follows (tax code)

A federal change reaches Maryland's income tax from the year after it is enacted unless the state decouples (Tax-General §10-108). The 2026 budget act decoupled from two depreciation provisions, not from these accounts.

Sources: Md. Code, Tax-General §10-108; Department of Legislative Services, The 90 Day Report, 2026 session

Massachusetts Does not follow

Massachusetts uses the Internal Revenue Code as of January 1, 2024 for most personal income tax purposes. TIR 26-4 (September 9, 2026), which goes through the 2025 federal law provision by provision, answers “No” for Sec. 70204, Trump accounts and contribution pilot program. It does not yet explain how to report the accounts.

Source: Massachusetts DOR, TIR 26-4

Michigan Follows (tax code)

Michigan lets a taxpayer use the Internal Revenue Code in effect for the tax year (MCL 206.12(3)), and Treasury says federal changes to adjusted gross income “automatically flow to the state return.” Treasury's February 2026 notice on the provisions Michigan decoupled from does not mention these accounts.

Sources: MCL 206.12; Michigan Department of Treasury notice, February 25, 2026

Minnesota Follows (tax code)

Laws 2026, chapter 128 (signed May 27, 2026) moves Minnesota's Internal Revenue Code date to May 1, 2026, with federal changes taking effect when they did federally. Before that law, the Department of Revenue said Minnesota did not conform to these accounts.

Sources: Laws 2026, chapter 128, article 1; Minnesota DOR analysis of H.F. 3754 (March 2, 2026)

Mississippi Not determined

Mississippi reports income item by item under its own law and records differences from the federal return on a separate schedule. We found no Department of Revenue guidance on Trump Accounts.

Source: Mississippi DOR, 2025 Form 80-100 instructions

Missouri Follows (tax code)

Missouri applies federal law “as the same may be or become effective, at any time or from time to time, for the taxable year.”

Source: RSMo 143.091

Montana Follows (tax code)

Montana defines the Internal Revenue Code as the federal code “as amended.”

Source: MCA 15-30-2101(14)

Nebraska Follows (tax code)

The Department of Revenue: “Nebraska is a state of rolling conformity to the federal tax code.”

Source: Nebraska DOR, Effects of the One Big Beautiful Bill Act on the State of Nebraska (2025)

Nevada No income tax

Nevada's constitution: “No income tax shall be levied upon the wages or personal income of natural persons.”

Source: Nevada Constitution, Article 10, Section 1

New Hampshire No income tax

New Hampshire's tax on interest and dividends, its only tax on personal income, was repealed for taxable periods beginning after December 31, 2024.

Sources: NH Department of Revenue Administration, Interest & Dividends Tax; RSA chapter 77 (repealed)

New Jersey Not determined

The Division of Taxation says the Gross Income Tax “is not computed based on federal adjusted gross income.” Its page on the 2025 federal law (last updated December 1, 2025) does not mention Trump Accounts.

Source: NJ Division of Taxation, One Big Beautiful Bill Act and the New Jersey Gross Income Tax

New Mexico Follows (tax code)

New Mexico adjusted gross income is defined by section 62 of the federal code “as that section may be amended or renumbered” (NMSA 1978, §7-2-2). The 2026 tax bill, SB 151, decoupled from federal depreciation and business-interest rules, not from these accounts.

Sources: NMSA 1978, §7-2-2 (statute text on Justia); SB 151 (2026), final version

New York Follows (tax code)

New York adjusted gross income is federal adjusted gross income with the state's additions and subtractions, none of which covers these accounts.

Source: N.Y. Tax Law §612

North Carolina Follows (tax code)

S.L. 2026-31 (SB 595) adopts the Internal Revenue Code as enacted as of July 5, 2025, including provisions enacted by then that take effect later (G.S. 105-228.90(b)(7)).

Source: S.L. 2026-31 (SB 595), Part XII

North Dakota Follows (tax code)

North Dakota reads references to the federal code as the Internal Revenue Code of 1986, “as amended.”

Source: N.D.C.C. §57-38-01(5)

Ohio Follows (tax code)

Ohio reads the Internal Revenue Code as it existed on March 5, 2026, the effective date of S.B. 9 (R.C. 5701.11).

Source: Ohio Revised Code 5701.11

Oklahoma Follows (tax code)

Oklahoma uses the federal code “as the same may be amended or adopted from time to time applicable to the taxable year.”

Source: 68 O.S. §2353(2)

Oregon Follows (tax code)

Oregon taxable income starts from federal taxable income (ORS 316.048), a connection Oregon keeps unless it passes a disconnect. SB 1507 (2026) disconnected from other federal changes, not from these accounts.

Sources: ORS 316.048; Legislative Revenue Office, Oregon's connection to federal tax law; SB 1507 (2026), enrolled

Pennsylvania Does not follow

The Department of Revenue says Pennsylvania does not automatically follow the federal code. Capital gain distributions and interest realized by the account's funds are taxable. The $1,000 federal deposit and private seed money are gifts and are not taxed, and contributions from parents and relatives are not taxed unless tied to pay. Whether a child must file waits on final federal regulations, and an inherited account is subject to Pennsylvania inheritance tax.

Source: Pennsylvania DOR, Answer ID 4264 (updated August 7, 2026)

Rhode Island Follows (tax code)

Rhode Island income starts from federal adjusted gross income (R.I. Gen. Laws §44-30-12). The decoupling Rhode Island made permanent in 2026 covers research expensing, the business-interest limit and the small-business stock exclusion, not these accounts.

Sources: R.I. Gen. Laws §44-30-12; RI Division of Taxation, 2026 summary of legislative changes

South Carolina Does not follow (old code)

Information Letter #26-4 (revised January 30, 2026) puts South Carolina's conformity to the Internal Revenue Code through December 31, 2024, before the accounts were created. Bills to update it for 2025, H. 5167 and H. 5178, were still in the House Ways and Means Committee when we checked. The Department of Revenue has not addressed the accounts.

Sources: SC DOR, Information Letter #26-4 (revised); H. 5167 status; H. 5178 status

South Dakota No income tax

The Department of Revenue says South Dakota “does not impose a state income tax.”

Source: South Dakota DOR, taxes for individuals

Tennessee No income tax

The Hall income tax on interest and dividends was repealed for tax periods beginning on or after January 1, 2021.

Source: Tennessee DOR, Hall Income Tax

Texas No income tax

Texas's constitution says the legislature “may not impose a tax on the net incomes of individuals.”

Source: Texas Constitution, Article 8, Section 24-a

Utah Follows (tax code)

Utah adjusted gross income “means the same as that term is defined in Section 62, Internal Revenue Code.”

Source: Utah Code §59-10-103(1)(a)

Vermont Follows (tax code)

Act 164 of 2026 adopts the federal income tax statutes as in effect on December 31, 2025 (32 V.S.A. §5824).

Source: Act 164 (2026), as enacted, section 60

Virginia Follows (tax code)

Virginia conforms to the Internal Revenue Code as it existed on December 31, 2025 (Code of Virginia §58.1-301). Its list of exceptions, mostly depreciation and deduction limits, does not include these accounts.

Sources: Code of Virginia §58.1-301; Virginia Tax Bulletin 26-1 (February 20, 2026)

Washington No income tax

The Department of Revenue says Washington “does not currently have an individual income tax.”

Source: Washington DOR, Income tax

West Virginia Follows (tax code)

SB 400 (2026 Acts, chapter 279) gives effect to federal changes made after December 31, 2024 and before January 1, 2026 (W. Va. Code §11-21-9).

Sources: SB 400 (2026), enrolled committee substitute; SB 400 status

Wisconsin Does not follow

Wisconsin Tax Bulletin 234 says “The state does not recognize Trump accounts,” including “any income exclusion related to the accounts.” It lists employer contributions to Trump Accounts among the items that can make Wisconsin wages on a W-2 differ from federal wages.

Source: Wisconsin Tax Bulletin 234 (July 2026)

Wyoming No income tax

Wyoming has no individual or corporate income tax, according to the Legislative Service Office.

Source: Wyoming Legislative Service Office, Wyoming tax structure (2021)

The federal rules

Trump Accounts were created by the tax law signed on July 4, 2025 (Public Law 119-21) and are governed by section 530A of the Internal Revenue Code. The IRS summarized the rules in Notice 2025-68:

• Contributions can start on July 4, 2026.
• Contributions from parents, relatives, employers and others are limited to $5,000 a year in total for 2026 and 2027, adjusted for inflation after that. The $1,000 pilot deposit, qualified general contributions and rollovers do not count toward the limit.
• Employer contributions under a section 128 program are not income to the employee, up to $2,500 a year (adjusted for inflation after 2027).
• The pilot program deposits $1,000 for an eligible child: a U.S. citizen born in 2025 through 2028, among other conditions.
• Until January 1 of the year the child turns 18 (the growth period), the money can go only into mutual funds or ETFs that track an index of mainly U.S. companies, use no leverage and charge no more than 0.1% a year, and it generally cannot be withdrawn.
• After the growth period, the account follows the general rules for an IRA.

Sources: IRS Notice 2025-68; 26 U.S.C. §530A.

How we sorted the states

• Follows (says so): the state's law names Trump Accounts or section 530A and applies the federal treatment.
• Follows (tax code): the state has not written about the accounts, but its income tax starts from federal adjusted gross income or federal taxable income, and the version of the federal code it uses includes the July 4, 2025 law that created them. We found no state rule that adds them back.
• Partly follows: the state follows the federal treatment for some of the account rules and not for others.
• Does not follow: the state's tax agency says the federal treatment does not apply.
• Does not follow (old code): the state uses a version of the federal code from before the accounts existed and has not updated it.
• Not determined: the state computes income under its own rules and has published nothing on these accounts. We do not guess.
• No income tax: the state has no broad personal income tax.

Every row rests on the state's statute, an enacted bill, or guidance from its tax agency. We did not copy other websites' lists.

What this page does not cover

• Withdrawals after the growth period. The account then follows IRA rules, and each state taxes IRA withdrawals its own way. California and Arizona have already written rules for Trump Account distributions; see their rows.
• Local income taxes, and state estate and inheritance taxes. Pennsylvania's Department of Revenue says an inherited Trump Account is subject to its inheritance tax.

Rechecks and changes

States are still deciding how to treat these accounts. We will recheck every state after the 2027 legislative sessions, and sooner for the states that have said the least: Massachusetts, Wisconsin, South Carolina, Arkansas, Mississippi and New Jersey. Every change will be listed here with its date. If a row is wrong, tell us.

• September 13, 2026. First published.

This page reports what state laws and tax agencies say about Trump Accounts. It is not tax, legal or financial advice, and it does not know your situation. For a decision that matters, ask a professional who is licensed to advise you.