States with No Income Tax — 2026 Guide

Most Americans pay federal income tax and state income tax on every paycheck. But 9 states collect no income tax on wages whatsoever — meaning workers there take home hundreds or even thousands more per year on the same salary. If you're considering a job offer in a new state, or thinking about relocating, understanding these differences could be worth more than a raise.

The 9 No-Income-Tax States

Click any state to see a pre-loaded salary calculator with your exact take-home pay.

How Much More Do You Keep?

The dollar difference between living in a no-tax state vs a high-tax state is significant at every income level. Here's an approximate comparison for a single filer after federal tax, FICA, and state income tax (Texas/Florida = $0 state tax; California and New York apply progressive brackets):

Approximate net annual take-home, single filer, 40 hrs/week, 52 weeks. Use the calculator for your exact figures.

At $75,000, a single filer in Texas takes home roughly $3,000 more per year than the same person in California — that's about $1.44/hour more, or a free tank of gas every week. At $150,000, the gap widens to $10,000+ per year.

Each No-Tax State, Explained

Texas

No state income tax and no plans to add one — it's written into the Texas Constitution that any income tax requires voter approval. Texas funds its government through property taxes and sales tax, which tend to be higher than average. Major metros like Austin, Dallas, and Houston have seen significant cost-of-living increases, so the tax savings may be partially offset by housing costs.

Florida

Florida abolished its personal income tax decades ago and has grown into one of the most popular relocation destinations in the US, especially for high earners from California and New York. The state relies on sales tax and tourism revenue. South Florida's housing market has become expensive, but much of the state remains affordable relative to coastal California or the NYC metro.

Washington

Washington state has no income tax, which is especially valuable given the concentration of high-earning tech jobs in the Seattle area. Amazon, Microsoft, and Boeing are all headquartered here. Washington does have a capital gains tax on investment gains over $262,000 (as of 2024), but wages remain untaxed.

Nevada

No income tax, funded heavily by gaming and tourism revenue. Las Vegas and Henderson have seen substantial population growth from California transplants. Cost of living is moderate compared to coastal states, making the net financial benefit of relocating here one of the strongest.

Alaska

No income tax and no state sales tax — Alaska is the only state with neither. It also pays residents an annual Permanent Fund Dividend (historically $1,000–$2,000/year). The catch: remoteness, harsh winters, and higher costs of goods make daily life more expensive in most areas.

Wyoming

No income tax and very low overall tax burden. Wyoming is popular with retirees and remote workers who want low taxes and wide open spaces. The state's budget is heavily funded by mineral extraction (coal, oil, natural gas).

South Dakota

No income tax and a business-friendly legal environment. Sioux Falls has become a financial services hub. South Dakota also has no inheritance tax, making it attractive for estate planning.

Tennessee

Tennessee eliminated its tax on investment income (the Hall Tax) completely as of 2021. Wages have never been taxed. Nashville has become one of the fastest-growing cities in the country, attracting workers from all industries.

New Hampshire

New Hampshire doesn't tax wages or salaries. It previously taxed interest and dividend income, but that tax was fully eliminated in 2025. For W2 employees, New Hampshire is now fully a no-income-tax state. No sales tax either — making it one of the lowest-tax states in the Northeast by a wide margin.

Should You Move for the Tax Savings?

The math is real, but moving decisions involve more than the tax line. Here's what to factor in:

• Property taxes: Texas has some of the highest property tax rates in the country (~2.1% annually), which can offset income tax savings for homeowners.
• Cost of living: Austin, Miami, and Seattle have seen massive rent and home price increases. Run the full cost-of-living comparison, not just the tax comparison.
• Remote work eligibility: If your employer is in California, some states still withhold California income tax on remote workers in certain situations. Check with a tax professional before assuming you're fully exempt.
• Career opportunities: A higher salary in a high-tax state can still net more than a lower salary in a no-tax state. Always compare net hourly rates, not tax rates.

The Highest-Tax States to Compare Against

For reference, these are the states where state income tax takes the biggest bite out of your paycheck:

• California — up to 13.3% marginal rate
• Hawaii — up to 11%
• New Jersey — up to 10.75%
• Oregon — up to 9.9%
• Minnesota — up to 9.85%
• New York — up to 10.9%