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 →
The 9 states with no income tax
| State | Income tax | How they make up the revenue |
|---|---|---|
| Alaska | None | Oil & natural-resource revenue; no state sales tax either (some local) |
| Florida | None | Tourism and a 6%+ sales tax; popular with retirees |
| Nevada | None | Gaming, tourism, and high sales taxes |
| New Hampshire | None* | High property taxes; finished phasing out its interest & dividends tax in 2025 |
| South Dakota | None | Sales tax and tourism; low overall burden |
| Tennessee | None | Among the highest combined sales-tax rates; repealed its Hall (investment) tax in 2021 |
| Texas | None | Notably high property taxes; sales tax |
| Washington | None* | High sales tax; 7% tax on large capital gains (high earners only) |
| Wyoming | None | Mineral & 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:
- High property taxes: Texas and New Hampshire have some of the highest effective property-tax rates in the country, which hits homeowners hard.
- High sales taxes: Tennessee and Washington carry some of the highest combined state-and-local sales-tax rates, so you pay more every time you spend.
- Resource & tourism revenue: Alaska (oil), Wyoming (minerals), and Nevada/Florida (tourism/gaming) can keep the overall burden genuinely low because outsiders and industry foot much of the bill.
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:
- Property taxes if you'll own a home (big in Texas, New Hampshire).
- Sales tax on everything you buy (high in Tennessee, Washington, Nevada).
- Cost of living overall — see our cost of living by state breakdown.
- Capital gains if you're a high earner selling investments in Washington.
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 StateFrequently Asked Questions
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.
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.
Higher sales taxes (TN, WA, NV), higher property taxes (TX, NH), and resource or tourism revenue (AK oil, WY minerals, FL/NV tourism).
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.
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.