{
  "name": "State Tax on Student-Loan Forgiveness (2026)",
  "publisher": "AttendingFi",
  "url": "https://attendingfi.com/guides/state-tax-on-student-loan-forgiveness.html",
  "last_updated": "2026-06-22",
  "license": "Free to cite with attribution to AttendingFi (attendingfi.com).",
  "methodology": "State-by-state treatment of federal student-loan forgiveness for 2026. 'Long-term IDR forgiveness' = taxability of balances forgiven at the end of an income-driven plan (IBR/RAP/etc.); 'PSLF forgiveness' = Public Service Loan Forgiveness. States with no income tax do not tax either. Some states have specific conformity rules — see notes. Educational estimate; verify with a tax professional and your state department of revenue.",
  "notes": [
    "Generally taxable = the state conforms to treating long-term IDR forgiveness as taxable income in 2026; verify current-year conformity with your state.",
    "PSLF forgiveness is excluded from federal income and is tax-free in states that conform to the federal exclusion.",
    "States with no broad income tax do not tax either type of forgiveness.",
    "Educational estimate — confirm with a tax professional and your state department of revenue."
  ],
  "count": 51,
  "states": [
    {
      "state": "Alabama",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Alaska",
      "has_state_income_tax": false,
      "idr_forgiveness_2026": "Not taxed — no state income tax",
      "pslf_forgiveness": "Not taxed"
    },
    {
      "state": "Arizona",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Arkansas",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "California",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Colorado",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Connecticut",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Delaware",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "District of Columbia",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Florida",
      "has_state_income_tax": false,
      "idr_forgiveness_2026": "Not taxed — no state income tax",
      "pslf_forgiveness": "Not taxed"
    },
    {
      "state": "Georgia",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Hawaii",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Idaho",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Illinois",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Indiana",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Iowa",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Kansas",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Kentucky",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Louisiana",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Maine",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Maryland",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Massachusetts",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Michigan",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Minnesota",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Mississippi",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Missouri",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Montana",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Nebraska",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Nevada",
      "has_state_income_tax": false,
      "idr_forgiveness_2026": "Not taxed — no state income tax",
      "pslf_forgiveness": "Not taxed"
    },
    {
      "state": "New Hampshire",
      "has_state_income_tax": false,
      "idr_forgiveness_2026": "Not taxed — no state income tax",
      "pslf_forgiveness": "Not taxed"
    },
    {
      "state": "New Jersey",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "New Mexico",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "New York",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "North Carolina",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable ³",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "North Dakota",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Ohio",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Oklahoma",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Oregon",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Pennsylvania",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Rhode Island",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "South Carolina",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "South Dakota",
      "has_state_income_tax": false,
      "idr_forgiveness_2026": "Not taxed — no state income tax",
      "pslf_forgiveness": "Not taxed"
    },
    {
      "state": "Tennessee",
      "has_state_income_tax": false,
      "idr_forgiveness_2026": "Not taxed — no state income tax",
      "pslf_forgiveness": "Not taxed"
    },
    {
      "state": "Texas",
      "has_state_income_tax": false,
      "idr_forgiveness_2026": "Not taxed — no state income tax",
      "pslf_forgiveness": "Not taxed"
    },
    {
      "state": "Utah",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Vermont",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Virginia",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Washington",
      "has_state_income_tax": false,
      "idr_forgiveness_2026": "Not taxed — no state income tax",
      "pslf_forgiveness": "Not taxed"
    },
    {
      "state": "West Virginia",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Wisconsin",
      "has_state_income_tax": true,
      "idr_forgiveness_2026": "Generally taxable",
      "pslf_forgiveness": "Tax-free"
    },
    {
      "state": "Wyoming",
      "has_state_income_tax": false,
      "idr_forgiveness_2026": "Not taxed — no state income tax",
      "pslf_forgiveness": "Not taxed"
    }
  ]
}