States With No Income Tax in 2026: The Full List and the Tradeoffs

The 9 states with no wage income tax

The table shows how each state raises money instead. Sales tax figures are Tax Foundation's averages as of July 1, 2026.

Quick answers: does this state have an income tax?

Plain answers for the states people search for most:

• Does Nevada have a state income tax? No. Its constitution bars a personal income tax. Employers pay the Modified Business Tax on payroll, but it isn't taken out of your pay.
• Does Texas have a state income tax? No. A 2019 constitutional amendment (Proposition 4) bans a personal income tax unless voters approve one.
• Does Florida have a state income tax? No. Article VII of the Florida Constitution bars a personal income tax on residents. Florida does tax corporate income.
• Does Alaska have a state income tax? No. Alaska repealed its personal income tax in 1980 and has no statewide sales tax. Residents receive a yearly Permanent Fund Dividend.
• Does Wyoming have a state income tax? No personal or corporate income tax. Mineral extraction pays for much of the state budget.
• Does South Dakota have a state income tax? No personal income tax. The state relies on a broad sales tax.
• Does Tennessee have a state income tax? No. The Hall tax on interest and dividends was fully repealed starting with tax year 2021.
• Does New Hampshire have an income tax? Not on individuals since January 1, 2025. Businesses still pay the Business Profits and Business Enterprise taxes.

How much do you actually save? A $60,000 example

A single filer earning $60,000 in 2026 pays $5,020 in federal income tax and $4,590 in FICA no matter where they live. In Texas, Florida, Nevada, South Dakota, Tennessee, Wyoming, Alaska and New Hampshire, take-home pay is $50,390. In Washington it's about $49,558 after PFML and WA Cares premiums.

The same worker would pay about $1,573 in income tax plus $780 in SDI in California, and about $2,643 in state tax plus about $290 in disability and paid-leave premiums in New York State. On a $60,000 salary, then, a no-income-tax state saves roughly $1,800–$3,000 a year compared with a high-tax state. At $250,000 the savings can be well over $15,000.

The tradeoffs: sales tax, property tax and services

Sales tax: Tennessee (9.61%), Washington (9.57%) and Texas (8.20%) have some of the highest average combined rates in the country. For a household that spends $40,000 a year on taxable goods, 9.5% sales tax is $3,800, which can wipe out the income-tax savings for lower and middle earners.

Property tax: Texas and New Hampshire have some of the highest effective property tax rates in the nation. Texas raised its school-tax homestead exemption to $140,000 in November 2025 ($200,000 for homeowners 65+ or disabled), but a $400,000 home can still owe several thousand dollars a year.

Insurance and fees: Florida homeowners insurance and Texas utility and toll costs aren't taxes, but they affect cost of living. Compare total costs, not only tax rates.

Who benefits most from a no-income-tax state

• High earners with large salaries or bonuses: income tax savings grow with income, while sales tax doesn't grow as fast.
• Retirees with large IRA or 401(k) withdrawals: none of these nine states tax them. Several income-tax states also exempt retirement income, so compare.
• Renters who spend little on taxable goods, since they pay property tax only indirectly through rent.
• Remote workers whose employer's state doesn't claim their wages. Watch for "convenience of the employer" rules in states like New York.

Running the numbers: Tennessee vs Georgia vs North Carolina at $90,000

Tennessee is the no-income-tax state people most often compare with its neighbors, so here is a $90,000 single earner in 2026, using the same engine as our paycheck calculator. Federal income tax ($10,970) and FICA ($6,885) are identical in all three states.

• Net of both taxes, the Tennessee worker comes out about $3,128 ahead of Georgia and $2,329 ahead of North Carolina, even though Tennessee's sales tax is much higher.
• The gap narrows for lower earners, who spend a bigger share of income on taxable goods, and widens for higher earners.
• Property tax isn't included here, and it can swing the comparison either way depending on the county and the home's value.

Living in a no-tax state but working across the border

Your home state not taxing wages doesn't stop the state where you work from taxing them. States tax nonresidents on wages earned for work done inside their borders, so border commuters often pay income tax after all.

• New Hampshire residents who commute to Massachusetts file a Massachusetts nonresident return and pay its income tax on Massachusetts-source wages. New Hampshire has no income tax to credit it against, so that tax is a true extra cost.
• Washington residents who work in Oregon, such as Vancouver-to-Portland commuters, owe Oregon nonresident tax on their Oregon wages at rates up to 9.9%.
• Remote workers in Florida, Texas or another no-tax state working for a New York employer can still owe New York tax on days New York treats as worked there for the employer's convenience. New York's nonresident guidance explains the test.
• Moving mid-year: you file a part-year resident return for the state you left, covering income earned before the move.

Small taxes that still reach individuals

• Washington takes PFML and WA Cares premiums from paychecks, about 0.81% and 0.58% of wages.
• New Hampshire's 8.5% meals and rooms tax and Alaska's local sales taxes mean "no sales tax" isn't always quite true at the register.