The 9 States With No State Income Tax (2026)
| State | Other Taxes to Know |
|---|---|
| Alaska | No sales tax either — but high cost of living |
| Florida | 6% sales tax; high property insurance costs |
| Nevada | 6.85% sales tax; no corporate income tax |
| New Hampshire | Taxes interest/dividends (phasing out by 2027) |
| South Dakota | 4.5% sales tax; no corporate income tax |
| Tennessee | 7% sales tax — highest in the US |
| Texas | No income tax, but property tax rates among highest nationally (avg 1.74%) |
| Washington | 6.5% sales tax; capital gains tax on $250k+ gains (7%) |
| Wyoming | 4% sales tax; very low overall tax burden |
How Much Do You Actually Save?
The real number depends on your salary, filing status, and the state you are leaving. Here are illustrative comparisons for a single filer:
$75,000 Salary: California vs Texas
| California | Texas | |
|---|---|---|
| State income tax | ~$4,680 | $0 |
| Federal tax | ~$9,500 | ~$9,500 |
| Take-home | ~$56,820 | ~$61,500 |
| Annual difference | — | +$4,680 |
$120,000 Salary: New York vs Florida
| New York | Florida | |
|---|---|---|
| State income tax | ~$8,700 | $0 |
| NYC local tax (if applicable) | ~$4,100 | $0 |
| Take-home | ~$79,700 | ~$92,500 |
| Annual difference | — | +$12,800 |
What No-Tax States Take Instead
Zero income tax does not mean zero taxes. These states compensate through other revenue sources:
Sales tax: Tennessee (7%), Louisiana (4.45% state + local), Washington (6.5%)
Property tax: Texas averages 1.74% effective rate — among the highest nationally. A $350,000 home costs roughly $6,090/year in property tax. In Florida, the same home costs $2,450/year (0.70% rate).
Cost of living: No-income-tax states are not uniformly cheaper. Washington (Seattle) and Florida (Miami) have high housing costs that offset income tax savings for many earners.
Who Benefits Most from No-Tax States?
High earners benefit most. At $50,000, moving from a 5% tax state saves $2,500. At $300,000, moving from California (13.3% marginal) saves $20,000–$30,000+.
Remote workers are the biggest winners — you can work for a high-paying employer in California while living in Nevada or Texas, keeping both the salary and the tax savings.
Retirees benefit from states that also exempt Social Security and pension income — Nevada, Florida, and Wyoming all do.
The Full Picture: Calculate Your Real Number
State tax is only part of the equation. Use our US Salary Tax Calculator to see exactly what you keep after federal and state taxes for any state, income level, and filing status.