States With No Income Tax
Nine states take nothing from wages. What they charge instead, what is still withheld, and whether moving is actually worth it.
On this page
The nine states
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wage income. Federal income tax and FICA still apply everywhere, so the state line is the only one that disappears.
Two of the nine arrived recently. Tennessee finished phasing out its Hall tax on interest and dividends, and New Hampshire repealed its own interest and dividends tax, so both now tax neither wages nor investment income.
What they charge instead
Every state funds itself somehow. Texas and New Hampshire have some of the highest property tax rates in the country. Tennessee and Washington rely on high combined sales tax. Nevada taxes gaming and levies a modified business tax on employers. Alaska and Wyoming fund government largely from mineral extraction revenue, which is why both can also keep sales tax low.
For a renter with a modest spending pattern, a no-income-tax state is usually a clear gain. For a homeowner, a property tax bill several thousand dollars higher can cancel the income tax saving entirely.
Washington is the exception on a pay stub
Washington has no income tax but is the one state on this list where a paycheck still carries mandatory state deductions. Paid Family and Medical Leave premiums are withheld from wages, and the WA Cares long-term care programme takes a further percentage unless you hold an approved exemption.
So a Washington stub has a state deduction block while a Texas stub does not. Alaska also withholds a small employee unemployment insurance contribution, which is unusual: in most states unemployment insurance is paid entirely by the employer.
What moving is actually worth
On a $75,000 salary, moving from California to Texas saves roughly $3,000 to $4,000 a year in state income tax and SDI. From New York City the saving is larger, because city tax goes too. From Pennsylvania, with its flat 3.07%, the saving is closer to $2,000.
Set that against local costs. Housing, insurance, property tax and utilities vary far more between metros than state income tax does between states. The saving is real but it is rarely the biggest number in the comparison.
The rules that catch movers out
Residency is about where you actually live, not where you register a mailbox. States with income tax audit departures, and the high-tax states audit them thoroughly. Expect to show where you spent your days, where your home and family are, and where your professional and social life is based.
Working remotely for an employer in another state is its own question. Several states tax income earned from an employer located there even when the employee is elsewhere, and reciprocity agreements between neighbouring states change the answer again. If you live in one state and work for an employer in another, take advice before assuming your new state rate applies.
Frequently asked questions
Which states have no income tax in 2026?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Federal income tax and FICA still apply in all of them, and Washington withholds paid family leave and long-term care premiums from wages.
Is a no-income-tax state actually cheaper?
Sometimes. These states raise revenue through property and sales tax instead, and Texas and New Hampshire have among the highest property tax rates in the country. For renters the saving is usually clear; for homeowners it can be cancelled out entirely.
Is anything withheld from a Texas paycheck besides federal tax?
Only FICA, at 6.2% for Social Security and 1.45% for Medicare, plus any deductions you choose such as retirement contributions or health premiums. Texas withholds no state income tax and no employee-paid insurance premium.
What if I live in a no-tax state but work for a company in another?
It depends on both states rules. Several states tax income sourced to an employer located there regardless of where the employee sits, and reciprocity agreements between neighbouring states change the outcome. Take advice before assuming your home state rate applies.
Run the numbers. Compare your own salary across states with the state calculator index, which ranks take-home pay on a $75,000 salary.
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These figures are estimates for informational purposes and are not tax advice. Actual withholding depends on your employer’s payroll system, your year-to-date wages and your specific W-4. Federal rates come from IRS Rev. Proc. 2025-32 and the SSA 2026 announcement; state rates come from each state’s own withholding guide, with the source and verification date published on every state page. Read the methodology, or see who maintains this data.