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I am using magento 2. And I need to disable one payment method 'cash on delivery' to specific states. Any help will be appreciated.

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For that you have to create observer:

VENDOR\MODULE\etc\events.xml:

<?xml version="1.0"?>

<config xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="urn:magento:framework:Event/etc/events.xsd">
    <event name="payment_method_is_active">
        <observer name="codpaymentdisableregion" instance="VENDOR\MODULE\Observer\Paymentactive" />
    </event>
</config>

VENDOR\MODULE\Observer\Paymentactive.php

<?php
namespace VENDOR\MODULE\Observer;

use Magento\Framework\Event\ObserverInterface;

class Paymentactive implements ObserverInterface 
{
    protected $_checkoutSession;

    public function __construct(\Magento\Checkout\Model\Session $checkoutSession) {
        $this->_checkoutSession = $checkoutSession;
    }
    public function execute(\Magento\Framework\Event\Observer $observer) {
        $objectManager = \Magento\Framework\App\ObjectManager::getInstance();

        $_session=$objectManager->get('Magento\Checkout\Model\Session');
        $method = $observer->getEvent()->getMethodInstance();
        $result = $observer->getEvent()->getResult();

        if($_session->getQuote()->getShippingAddress()->getRegion()=='XYZ' && $method->getCode()=="cashondelivery")
        {
            return $result->setData('is_available', false);
        }
        return $result->setData('is_available', true);

    }
}
?>

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