The 9 States With No Income Tax
In 2026, these nine states collect no income tax on wages or salaries:
- Alaska — Funded by oil revenue and a sovereign wealth fund
- Florida — Sales taxes and retiree population fund government operations
- Nevada — Gaming and tourism revenue offset income tax
- New Hampshire — No income tax on wages; interest/dividend tax fully repealed
- South Dakota — Lean government, high sales tax
- Tennessee — Sales tax-heavy; wages tax eliminated years ago
- Texas — Large population + no income tax = high economic attraction
- Washington — No income tax but has a 7% capital gains tax on gains over $262,000
- Wyoming — Oil/mineral revenue covers government costs
How Much Do You Actually Save?
The savings depend heavily on your income and which state you're comparing to:
| From State | To State | $75k Savings | $150k Savings |
| California | Texas | ~$4,200/yr | ~$9,800/yr |
| New York | Florida | ~$4,800/yr | ~$11,200/yr |
| Oregon | Washington | ~$6,100/yr | ~$13,500/yr |
| Minnesota | South Dakota | ~$4,400/yr | ~$10,100/yr |
The Trade-Offs You Need to Know
Property Taxes
Texas has an average effective property tax rate of 1.6–2.0%, nearly double the national average. A $400,000 home in Texas costs $6,400–$8,000/year in property taxes — a significant offset to income tax savings.Sales Tax
Nevada, Tennessee, and Texas all have sales tax rates of 6.25–8.25%+. Shopping and dining costs more after tax in these states.Washington's Capital Gains Tax
Washington added a 7% capital gains tax in 2022 on gains over $262,000 (indexed for inflation). High earners who sell investments pay this on top of no income tax.Public Services & Quality of Life
States without income tax often have leaner public systems. School quality, infrastructure, and social services vary significantly. Factor these into any relocation decision.Who Benefits Most from Moving?
The calculus favors moving to a no-tax state if:
- You earn over $100,000 and rent (avoiding the property tax hit)
- You work remotely and have flexibility on location
- You're in a high-tax state like California, Oregon, or New York
- You don't have kids or value the public school systems of your current state
- Own or plan to buy expensive property in a no-tax state
- Rely on public services that high-tax states fund well
- Have low income (the savings are minimal)
Calculate Your Actual Savings
Use our state comparison tool to run a side-by-side calculation on your exact salary between your current state and any no-tax state. The results might surprise you — or validate what you already suspected.