No-tax state guide
The 9 states with no income tax in 2026
Most American workers pay two layers of income tax: federal and state. But in nine states the state layer simply does not exist for wage earners. Live and work in one of these states and your paycheck has no state withholding line at all — only federal income tax and FICA payroll taxes come out. That can mean keeping thousands of dollars more every year on the same salary.
For the 2026 tax year, the nine states with no broad personal income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. New Hampshire finished phasing out its tax on interest and dividends on January 1, 2025, so it now joins the list for all income — including wages. The figures below are checked against each state's department of revenue and the Tax Foundation.
No-income-tax states at a glance (2026)
| State | State income tax | Main trade-off |
|---|---|---|
| Alaska | 0% | No state sales tax either; high cost of living, some local sales taxes |
| Florida | 0% | 6% state sales tax; revenue leans on tourism |
| Nevada | 0% | High combined sales tax (~8.2%) |
| New Hampshire | 0% | Very high property tax; no sales tax |
| South Dakota | 0% | Moderate sales tax; low overall burden |
| Tennessee | 0% | Highest combined sales tax in the US (~9.5%) |
| Texas | 0% | Among the highest property tax rates nationally |
| Washington | 0% on wages | 7% tax on long-term capital gains over the annual threshold; high sales tax |
| Wyoming | 0% | Low overall burden; mineral-revenue funded |
How no state tax changes your take-home pay
State income tax is withheld from every paycheck, just like federal tax. Removing it is one of the cleanest ways to raise your net pay without earning more. The exact gain depends on your salary and what the state's rate would have been — California's top rate reaches 13.3%, while flat-tax states sit around 3–5%. Run your own number through the take-home pay calculator by state and compare a no-tax state against your current one.
The catch: states still need revenue
No state runs on nothing. The nine no-income-tax states make up the difference with other taxes. Texas and New Hampshire carry some of the highest effective property tax rates in the country, so homeowners feel the cost. Tennessee and Nevada lean on high sales tax, which hits renters and heavy spenders. Florida's budget rides on tourism and sales tax. Whether you actually come out ahead depends on whether you rent or own, and how much you spend — not just the missing income-tax line.
Where most workers should look first
For renters and high earners, no income tax is usually a clear win because property tax does not touch them directly and the saved percentage compounds at higher salaries. For homebuyers in Texas, run both the income-tax saving and the property-tax cost together. Use the cost-of-living salary calculator and the cost of living by city guide to see the full local picture before you decide.
Run your numbers
Calculate take-home pay in a no-tax state
Pick a no-income-tax state and see your exact 2026 net pay — federal tax and FICA only, no state withholding.
Compare with income-tax states
See what you would pay in a state with income tax
Most states do tax your wages. Compare your take-home pay against the no-tax states above.
Related tools
Calculators to plan your move
Take-Home by State
Net pay for any state, 2026 rates.
Paycheck Calculator
Per-paycheck net with no state tax.
Cost-of-Living Salary
Salary needed to live in a city.
Compare Two States
No-tax vs income-tax side by side.
Effective Tax Rate
Your true blended rate after the move.
Cost of Living by City
Local prices in major US cities.
Questions
No income tax states FAQ
Which US states have no income tax in 2026?
Nine states levy no broad personal income tax in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. New Hampshire fully repealed its tax on interest and dividends as of January 1, 2025, so wages are not taxed in any of the nine. Washington has no tax on wage income but does levy a 7% tax on certain long-term capital gains above an annual threshold.
Do you really take home more pay in a no-income-tax state?
On the same salary you keep more of each paycheck because no state tax is withheld — federal income tax and FICA still apply. On a $90,000 salary, skipping a 5% state income tax keeps roughly $4,500 more per year. But no-tax states often offset the lost revenue with higher sales tax or property tax, so compare the full picture, not just the paycheck.
What are the trade-offs of living in a no-income-tax state?
States without an income tax raise revenue elsewhere. Texas and New Hampshire have some of the highest effective property tax rates in the country, Washington and Nevada lean on high sales tax, and Florida's revenue is heavily tied to tourism and sales tax. Your real benefit depends on whether you rent or own and how much you spend.
Does no state income tax affect my federal taxes?
No. Federal income tax brackets, the standard deduction and FICA (6.2% Social Security up to the $184,500 wage base plus 1.45% Medicare) are identical in all 50 states. Living in a no-income-tax state only removes the state withholding line from your paycheck.
- Sources: State departments of revenue (no-income-tax confirmation) · Tax Foundation 2026 state tax data · New Hampshire interest & dividends tax repeal (effective Jan 1, 2025) · IRS Topic No. 751 (FICA rates) · SSA 2026 OASDI wage base ($184,500).
- 🔄 Last updated June 25, 2026 · Tax year 2026
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