States With No Income Tax: Full List for 2026
Nine states do not tax wages at the state level: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. If you are searching for states with no income tax, that list is the short answer, but the full picture is more interesting. Each state balances its budget in a different way, and a zero on your pay stub can be offset by higher property, sales or business taxes. This guide explains how the no-income-tax model works, what you keep in your paycheck, and how to compare states honestly before you move.
In this guide:
- The nine states with no tax on wages
- How much can you actually save?
- How these states pay for services instead
- Worked example: same salary, two states
- Special rules for remote workers and people who move
- What no income tax does not change
- Checklist before you move for taxes
- What comes next on USPaycheckGuide
- Common mistakes when comparing state taxes
- Key takeaways
- Take-home pay in a no-tax state vs. a high-tax state
- Taxes no-tax states use instead
- Moving to a no-tax state: what to check
- Frequently Asked Questions
1. The nine states with no tax on wages
The following states do not levy a broad-based state income tax on the wages of ordinary workers as of 2026. Rules change, so confirm with each state's revenue department before relying on a specific detail.
- Alaska: no personal income tax. The state relies heavily on oil and gas revenue and pays residents an annual Permanent Fund Dividend.
- Florida: no personal income tax, funded largely through sales tax, tourism and property taxes.
- Nevada: no personal income tax, with revenue from gaming, tourism and sales tax.
- New Hampshire: never taxed wages. It formerly taxed interest and dividends, but that tax was phased out, so residents now face no broad income tax.
- South Dakota: no personal income tax, with sales tax and a low-cost business climate.
- Tennessee: no tax on wages. The former Hall tax on investment income has been repealed.
- Texas: no personal income tax, relying on sales tax, property tax and oil and gas revenue.
- Washington: no wage income tax, but it does tax certain capital gains and has a business and occupation tax on gross receipts.
- Wyoming: no personal income tax, funded by mineral taxes, sales tax and property tax.
Living in one of these states removes state income tax from your paycheck, but you still owe federal income tax, Social Security and Medicare. Use our paycheck calculator with a state rate of 0 to see your take-home pay.
2. How much can you actually save?
The savings depend on your income and the tax you would otherwise pay. State income tax rates on wages vary widely, from under 3% in some flat-tax states to double digits at the top end in others. A worker earning $75,000 who would pay an effective state rate of about 4% saves roughly $3,000 a year, or about $115 per biweekly paycheck. At $200,000, an effective rate of 5% or 6% can add up to $10,000 or more per year.
The gap matters most for high earners, remote workers, retirees drawing taxable income and business owners. It matters less for someone whose income is modest and whose main costs are rent and groceries, because those costs are influenced by sales tax, housing prices and local wages rather than by income tax alone.
3. How these states pay for services instead
No state runs on nothing. Governments that skip the income tax fund roads, schools and public safety through other sources. Common substitutes include higher sales taxes, property taxes, severance taxes on natural resources, tourism and gaming revenue, gross receipts taxes on businesses, and fees. In some states the sales tax base is broad and the combined state and local rate is high. In others property taxes are the burden: Texas, for example, is known for above-average property tax bills relative to home values, while Florida's property tax is moderate but homeowners insurance costs have climbed.
The net effect is that two states with the same take-home pay can feel very different once you add up the tax you pay through purchases and property. This is the most common mistake in state comparisons: looking only at the paycheck line and ignoring everything else.
4. Worked example: same salary, two states
Consider a single worker earning $90,000. Federal income tax after the $16,100 standard deduction is about $10,970, and FICA is $6,885. In a no-income-tax state, those are the only payroll-related taxes, leaving about $72,145 a year. In a state with a flat 4.5% income tax, state tax would add about $4,050, leaving about $68,095. The difference is roughly $4,050 per year, or $338 a month.
Now ask what the no-tax state charges you elsewhere. If housing costs in your target city are $6,000 a year higher, or you drive an extra 5,000 miles, or you pay an additional $1,500 in property tax, the gap shrinks. A reasonable comparison sums income tax, property tax, sales tax on your typical spending and housing costs. Do this before packing a moving truck.
5. Special rules for remote workers and people who move
Where you live and where you work can both matter. Most states tax residents on all income and nonresidents on income earned within the state. If you live in Texas but work physically in a state with an income tax, that state usually taxes the wages you earn there. Remote workers generally owe tax to the state where they live, although a handful of states apply a convenience-of-the-employer rule that can tax remote work for an in-state employer. Reciprocity agreements between neighboring states can also change who gets the tax.
If you move mid-year, you may file a part-year resident return and split income between states. Employers must withhold based on your work location and residence, so update your address and Form W-4 promptly. See our guide to filling out the W-4 so your withholding matches your situation.
6. What no income tax does not change
Your federal tax bill is identical in every state, so the federal income tax calculator gives the same answer in Miami or Minneapolis. Social Security and Medicare, explained on our FICA tax page, are also identical. Local taxes still exist in some places, and a few no-income-tax states have unusual features such as Washington's capital gains tax and business tax, or Tennessee's and Texas's franchise or margin taxes for businesses. Self-employed people should look at the whole business tax picture, not just personal income tax.
7. Checklist before you move for taxes
- Compare total cost of living, not only income tax: housing, insurance, property tax and sales tax.
- Check your industry: salaries for the same job often differ by state.
- Understand residency rules, including how long you must live in the state and how to formally change domicile.
- Ask whether your employer will withhold correctly for your new location.
- Consider healthcare access, climate, family and career opportunities, which matter more than taxes for most people.
8. What comes next on USPaycheckGuide
This page is the starting point for our complete state-by-state series. We are adding a dedicated paycheck guide and calculator for every U.S. state and for major cities, covering flat-tax states, graduated-tax states and the places where local income taxes apply. Bookmark the calculator library and start with the paycheck calculator, then return here whenever you need to check which states skip the income tax.
Tax rules are updated by legislatures every year, so we recommend confirming any figure you plan to rely on with your state department of revenue or the IRS at IRS.gov.
9. Common mistakes when comparing state taxes
- Treating zero income tax as free. The revenue is collected elsewhere.
- Ignoring property tax and insurance. These can swamp income tax savings for homeowners.
- Assuming remote work removes all other states' claims. Work location and employer rules can create a tax bill elsewhere.
- Using top marginal rates instead of effective rates. Most people pay well below the top rate on their whole income.
- Not updating withholding after a move. This can produce a surprise bill or refund.
10. Key takeaways
- Nine states do not tax wages: AK, FL, NV, NH, SD, TN, TX, WA and WY.
- You still pay federal income tax and FICA everywhere.
- Other taxes, such as sales, property and business taxes, make up the difference.
- Compare total cost of living, not just the paycheck line.
- Confirm current rules with the state revenue department before making a decision.
11. Take-home pay in a no-tax state vs. a high-tax state
| Salary (single filer) | No-tax state, e.g. Texas | 5% flat-tax state | Difference a year |
|---|---|---|---|
| $50,000 | $42,355 | $40,660 | $1,695 |
| $75,000 | $61,592 | $58,648 | $2,945 |
| $100,000 | $79,180 | $74,985 | $4,195 |
| $150,000 | $113,791 | $107,096 | $6,695 |
The flat-tax column applies a simple 5% rate to income above the $16,100 federal standard deduction, as an illustration. Real state taxes differ in deductions, exemptions and brackets; see each state's calculator for exact figures.
12. Taxes no-tax states use instead
- Sales taxes: Tennessee and Washington have some of the highest combined state and local sales tax rates in the country.
- Property taxes: Texas and New Hampshire rely heavily on property taxes, which can be high relative to home values.
- Natural resource taxes: Alaska and Wyoming collect severance taxes on oil, gas and minerals, and Alaska pays residents a yearly dividend.
- Tourism and gaming: Nevada and Florida collect a large share of revenue from visitors through sales, hotel and gaming taxes.
- Business taxes: Washington's business and occupation tax and Texas's franchise tax are levied on businesses rather than wages.
13. Moving to a no-tax state: what to check
Changing your state of residence for tax purposes means actually moving: getting a new driver's license, registering to vote and cars, moving your primary home and spending most of your time there. High-tax states can audit former residents who keep strong ties. If you work remotely for an employer in another state, check whether that state taxes nonresident remote workers; New York, for example, can tax remote employees of New York employers in some cases. Update your address with payroll so state withholding stops.
Frequently Asked Questions
Which states have no income tax in 2026?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wages at the state level. Washington taxes some capital gains, and rules can change, so confirm with the state.
Do states with no income tax have higher taxes elsewhere?
Often yes. They tend to rely more on sales tax, property tax, business taxes and natural resource revenue, but the mix and the overall burden vary by state.
Do I still pay federal income tax in a no-tax state?
Yes. Federal income tax, Social Security and Medicare apply in every state.
If I live in Texas but work remotely for a company in California, whose tax do I pay?
Generally you owe tax to the state where you physically perform the work. Rules for remote workers are complicated and some states have special employer-based rules, so consult a tax professional.
Is Washington really a no-income-tax state?
It has no tax on wages, but it does levy a tax on certain long-term capital gains and a gross receipts tax on businesses, so it is not tax-free for investors and companies.
What is the best state for take-home pay?
It depends on your income, housing costs and lifestyle. Use a paycheck calculator plus a cost-of-living comparison, since a zero income tax rate alone does not decide it.
Does New Hampshire tax wages?
No. New Hampshire does not tax wages, and its former tax on interest and dividends was repealed starting in 2025.
Does Tennessee tax income?
No. Tennessee does not tax wages, and its former tax on investment income ended in 2021.
Do I pay tax in my old state after moving to a no-tax state?
Only on income earned while you were a resident there, or income sourced to that state, reported on a part-year return.
Does Alaska tax income?
No. Alaska has no state income tax or statewide sales tax, though some local sales taxes apply.
Does Wyoming have a state income tax?
No. Wyoming taxes neither personal nor corporate income.
Does Nevada tax wages?
No. Nevada has no personal income tax; it relies heavily on sales and gaming taxes.
Does South Dakota tax income?
No. South Dakota has no personal or corporate income tax.
Does Florida tax retirement income?
No. Florida has no personal income tax, so pensions and retirement withdrawals are not taxed by the state.
Are there payroll deductions in Washington even without income tax?
Yes. Washington employees pay premiums for paid family and medical leave and the WA Cares long-term care program, and high earners may owe a capital gains excise tax.
Do no-tax states tax my pension or Social Security?
No. States without a wage income tax do not tax pensions, retirement withdrawals or Social Security benefits either.
This article is for general education only and is not tax, legal or investment advice. Figures and rules change; confirm details with the IRS or a qualified professional before making decisions.