The 9 States With No State Income Tax
| State | Sales Tax (avg) | Property Tax Rate | Notes |
|---|---|---|---|
| Alaska | 0% (no state; local varies) | 1.22% | Oil dividend pays residents annually |
| Florida | 7.0% | 0.91% | Popular retiree destination |
| Nevada | 8.2% | 0.59% | Low property + no income = very low burden |
| New Hampshire | 0% | 2.09% | High property tax; interest/dividend tax phasing out |
| South Dakota | 4.5% | 1.14% | Very low overall cost of living |
| Tennessee | 9.5% | 0.67% | High sales tax replaces income tax revenue |
| Texas | 8.2% | 1.74% | Above-average property tax; no income tax |
| Washington | 9.2% | 0.93% | 7% capital gains tax on gains >$250k (since 2022) |
| Wyoming | 4.0% | 0.61% | Lowest overall tax burden in the US |
Real Savings by Income Level
$75,000 Salary — Moving From California
California's top marginal rate hits at relatively low income. At $75k:
- CA state income tax: ~$4,200
- Moving to Texas: saves ~$4,200/year
But Texas property taxes are high. If you buy a median-priced home ($320,000):
- TX property tax: $320,000 × 1.74% = $5,568/year
- CA property tax: $320,000 × 0.75% = $2,400/year
- Net property tax increase: +$3,168/year
Net annual saving: ~$1,032/year — barely worth it for the property tax hit.
$200,000 Salary — Moving From New York
At $200k, NY's effective rate approaches 6%:
- NY state income tax: ~$11,900/year
- Moving to Florida: saves ~$11,900/year
- FL property taxes are moderate — total tax burden drops significantly
Net annual saving: ~$8,000–$10,000/year — much more compelling.
$500,000 Salary — Moving From California
At $500k, California's 9.3% (plus 1% mental health surcharge = 10.3%) hits hard:
- CA state income tax: ~$43,000/year
- Moving to Nevada or Texas: saves ~$43,000/year
Net annual saving: $35,000–$43,000/year — this is why high earners move.
Which No-Tax State Has the Lowest Total Burden?
Ranking by total state/local tax burden (income + property + sales + other):
- Wyoming — no income tax, low sales tax (4%), low property tax → lowest overall
- Nevada — no income tax, moderate sales tax, very low property tax
- Florida — no income tax, moderate property tax, decent sales tax
- South Dakota — no income tax, low everything
- Tennessee — no income tax but highest sales tax in the US (9.5%)
New Hampshire ranks poorly overall due to some of the highest property taxes in the nation (2.09%) — you trade income tax for property tax dollar-for-dollar.
The Domicile Trap: Moving Must Be Real
States like California and New York aggressively audit high-income earners who claim to have moved. To successfully change your domicile:
- Spend >183 days/year in the new state (keep detailed records)
- Change your driver's license and voter registration
- Move your primary residence — don't just rent a mailbox in Nevada
- Update professional licenses, bank accounts, and estate planning to new state
- Wind down California/NY ties: resign from CA boards, move car registration, etc.
California auditors look for: credit card activity in CA, social/club memberships, doctors/dentists visited, and where your children attend school.
Quality of Life Considerations
Tax savings don't matter if you hate where you live. Key factors:
| Factor | Best No-Tax Options |
|---|---|
| Job market (tech) | Texas (Austin), Washington (Seattle) |
| Job market (finance) | Florida (Miami), Texas (Dallas) |
| Retirement lifestyle | Florida, Nevada |
| Outdoor/nature | Wyoming, Alaska |
| Cost of living (overall low) | Wyoming, South Dakota |
| Urban amenities | Texas (Austin/Dallas/Houston), Florida (Miami/Tampa) |
Use our US Salary Tax Calculator to model your exact take-home pay in any state.