Resource guide · 2024

States With No
Income Tax

Nine U.S. states collect no income tax on wages. On a $100,000 salary, that can mean $5,000–$13,000 more per year compared to high-tax states.

All 9 no-income-tax states

Take-Home Pay Comparison

Single filer, biweekly pay, no pre-tax deductions

State$75k$100k$150k$200k
Alaska$60,922$78,509$112,987$149,108
Florida$60,922$78,509$112,987$149,108
Nevada$60,922$78,509$112,987$149,108
New Hampshire$60,922$78,509$112,987$149,108
South Dakota$60,922$78,509$112,987$149,108
Tennessee$60,922$78,509$112,987$149,108
Texas$60,922$78,509$112,987$149,108
Washington$60,922$78,509$112,987$149,108
Wyoming$60,922$78,509$112,987$149,108

How Much Do You Save vs. High-Tax States?

On a $100,000 salary, single filer

StateTake-homeState tax
AlaskaNo tax$78,509$0
FloridaNo tax$78,509$0
NevadaNo tax$78,509$0
New York$73,557$4,952
Minnesota$73,160$5,349
California$73,040$5,469
Oregon$71,263$7,246

Why Do Some States Have No Income Tax?

States forgo income tax for different reasons. Alaska funds government operations largely through oil revenue and a sovereign wealth fund. Nevada and Wyoming rely heavily on tourism and natural resource extraction. Florida generates significant revenue through sales taxes and a large retiree population.

Texas and Washington both have high populations and strong economies that generate substantial sales and property tax revenue. South Dakota and New Hampshire have historically kept government spending lean, reducing the need for broad income taxes.

The Trade-Offs: What to Watch For

No-income-tax states are attractive, but they often compensate with other taxes:

  • Texas: One of the highest property tax rates in the nation (~1.6–2% average effective rate)
  • Washington: 7% capital gains tax on gains over $262,000 (2024)
  • Nevada & Florida: Higher sales tax rates than average
  • New Hampshire: No sales tax, but high property taxes in some counties

Calculate Your Savings

Use our state-by-state paycheck calculators to see exactly how much you'd take home in any of these no-income-tax states. Compare your current state vs. a no-income-tax state to see the real dollar difference on your specific salary.

Frequently Asked Questions

Which states have no income tax?

Nine states have no state income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

How much do you save living in a no-income-tax state?

On a $100,000 salary, moving from California (top rate 13.3%) to Texas (no state tax) can save $7,000–$10,000 per year in state income taxes. The exact amount depends on your income, filing status, and deductions.

Are no-income-tax states always better financially?

Not necessarily. States without income tax often make up revenue through higher property taxes, sales taxes, or other fees. Texas, for example, has some of the highest property taxes in the country. Always consider your full tax picture when evaluating a move.

Do no-income-tax states still tax investment income?

Most no-income-tax states also exempt investment income. New Hampshire previously taxed interest and dividends but fully repealed that tax in 2025. Washington state has a capital gains tax (7%) on gains over $262,000.

What about New Hampshire — does it really have no income tax?

Yes. New Hampshire does not tax wages or salaries. A historical tax on interest and dividends was fully repealed in 2025, making it a true no-income-tax state on all personal income.

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