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States With No Income Tax (2026)

Nine states charge no tax on your paycheck in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Living in one can mean thousands more in take-home pay each year — but there's a catch. These states still need revenue, so they collect it through higher sales or property taxes instead. Here's the full list, the fine print for Washington and New Hampshire, and whether moving actually saves you money. More in our Personal Finance Statistics Hub →

9No-Income-Tax States
0%Tax on Wages
~$9KSaved on $100K in CA
2With Fine Print

The 9 states with no income tax

StateIncome taxHow they make up the revenue
AlaskaNoneOil & natural-resource revenue; no state sales tax either (some local)
FloridaNoneTourism and a 6%+ sales tax; popular with retirees
NevadaNoneGaming, tourism, and high sales taxes
New HampshireNone*High property taxes; finished phasing out its interest & dividends tax in 2025
South DakotaNoneSales tax and tourism; low overall burden
TennesseeNoneAmong the highest combined sales-tax rates; repealed its Hall (investment) tax in 2021
TexasNoneNotably high property taxes; sales tax
WashingtonNone*High sales tax; 7% tax on large capital gains (high earners only)
WyomingNoneMineral & energy revenue; low overall tax burden

*New Hampshire taxed interest and dividends until the phase-out completed at the start of 2025; it now has no income tax of any kind. *Washington has no wage income tax but imposes a 7% excise tax on long-term capital gains above roughly $270,000 a year.

The catch: no income tax doesn't mean low taxes

Every state needs money, so the ones without an income tax raise it elsewhere — and the total bite varies a lot:

So the overall tax burden is truly low in places like Wyoming, Alaska, and Florida, but closer to average in a high-property-tax state like Texas once you own a home.

📊 Key insight

No-income-tax states are a clear win for high earners and people with large retirement or investment income — skipping a 5–9% state income tax on a big salary saves real money (a $100K earner leaving California keeps roughly $9,000 more). For a middle-income renter the math is murkier: higher sales and property taxes can quietly claw back much of the "savings." Compare your total tax burden and cost of living, not just the income-tax line.

Should you move to a no-income-tax state?

Run the full comparison before you pack. The income-tax savings show up immediately in your paycheck — see exactly how much in our $100K take-home pay by state guide, where no-income-tax states top the list. But weigh it against:

See what you'd actually keep

Compare take-home pay and cost of living across states before you make a move.

$100K After Taxes by State → Cost of Living by State

Frequently Asked Questions

Which states have no income tax in 2026? ▼

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire now has no income tax of any kind after its interest-and-dividends tax phased out in 2025.

Does Washington really have no income tax? ▼

No wage income tax, so yes for most people. But it levies a 7% tax on long-term capital gains above ~$270,000/year, which affects high earners selling investments.

How do these states make money? ▼

Higher sales taxes (TN, WA, NV), higher property taxes (TX, NH), and resource or tourism revenue (AK oil, WY minerals, FL/NV tourism).

Will I actually save money by moving? ▼

Often for high earners, not always for others. Higher sales/property taxes and cost of living can offset the income-tax savings. Compare total burden, not just income tax.

Is it better to live in a no-income-tax state? ▼

It most benefits high earners and those with big investment/retirement income. For others it can be a wash once sales and property taxes are factored in.


By Mike Van Kempen · Founder & Editor, TopMoneyApps

Mike founded TopMoneyApps and turns tax and cost-of-living data into plain-language guidance on keeping more of what you earn.

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