States With No Income Tax (2026): Full List + How Much You'd Save
Updated · Reviewed by Deepak Middha, Chartered Accountant
The short answer
9 states have no income tax on wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Two come with caveats: Washington taxes large long-term capital gains and starts a 9.9% tax on income over $1 million in 2028, and New Hampshire repealed its interest and dividends tax from 2025, so it now taxes neither wages nor investment income.
How much would you save in a no-tax state?
Moving to a state with no income tax on wages would save you about $6,669 a year in state income tax and payroll contributions at this income.
What to do next: see the full line-by-line figure on the California tax calculator, and remember the move only counts once you are a resident — see moving states mid-year.
Key takeaways
- The nine states with no tax on wages for 2026 are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
- Tennessee repealed its Hall tax on interest and dividends from 2021, and New Hampshire repealed its version from 2025.
- Washington is the exception to watch: a capital gains tax now, and a 9.9% income tax on income over $1 million from January 1, 2028.
- You still pay federal income tax, Social Security and Medicare in every state.
- No-income-tax states raise money elsewhere — sales, property and excise taxes — so compare the whole bill, not just income tax.
Which states have no income tax? The full 2026 list
| State | Taxes wages? | What to know | Calculator |
|---|---|---|---|
| Alaska | No | No individual income tax. | Alaska tax calculator |
| Florida | No | No personal income tax. | Florida tax calculator |
| Nevada | No | No individual income tax. | Nevada tax calculator |
| New Hampshire | No | No tax on wages. Its Interest and Dividends Tax was repealed for taxable periods beginning after December 31, 2024, so 2025 is the first year with no tax on investment income either. | New Hampshire tax calculator |
| South Dakota | No | No state income tax. | South Dakota tax calculator |
| Tennessee | No | No tax on wages. The Hall income tax on interest and dividends was repealed for tax periods beginning on or after January 1, 2021. | Tennessee tax calculator |
| Texas | No | No personal income tax. | Texas tax calculator |
| Washington | No | No individual income tax in 2026, but a 7% tax on long-term capital gains (9.9% on gains over $1 million from tax year 2025), and a new 9.9% income tax on AGI over $1 million starts January 1, 2028. | Washington tax calculator |
| Wyoming | No | No individual income tax. | Wyoming tax calculator |
The other 41 states and DC tax wages. To see what yours takes, use the state income tax calculator, or compare all of them at one salary in take-home pay on $100k by state.
Do states with no income tax make it up elsewhere?
Often, yes. Without an income tax, these states lean harder on sales tax and on local property tax — Texas is a good example, with no income tax but one of the higher property tax rates in the country. A move that saves you income tax can cost you some of it back at the register or on your home. For the property-tax side, see are there states with no property tax?
Moving to a no-income-tax state mid-year
The saving starts on the day you become a resident, not on January 1. In the year you move you will usually file a part-year return in your old state; the details are in moved states mid-year.
Frequently asked questions
What states have no income tax in 2026?
9 states do not tax wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Two have caveats. Washington taxes long-term capital gains and has enacted an income tax on incomes over $1 million from 2028. New Hampshire repealed its interest and dividends tax for periods beginning after December 31, 2024, so it no longer taxes investment income either.
Does Texas have a state income tax?
No. The Texas Comptroller says plainly that Texas has no state income tax, so wages are not taxed by the state. Texans still pay federal income tax and Social Security and Medicare. In place of an income tax, Texas relies on sales tax and on local property taxes, and its average effective property tax rate is one of the ten highest in the country.
Is Washington really a state with no income tax?
For wages, yes, in 2026 and 2027. Washington's Department of Revenue says the state does not currently have an individual income tax. It does tax long-term capital gains at 7%, rising to 9.9% on gains over $1 million from tax year 2025, and a new 9.9% income tax on adjusted gross income above $1 million begins January 1, 2028.
Which states have no state tax at all?
None. Every state levies some tax. The nine no-income-tax states fund themselves with sales, property, excise and business taxes instead, and every one of them has a property tax. Whether a move saves you money overall depends on how much you earn, spend and own, which is why the calculator compares only the income-tax and payroll piece and leaves sales and property tax to you.
Do I still pay federal income tax in a state with no income tax?
Yes. The federal income tax, Social Security and Medicare apply the same way in every state. A no-income-tax state only removes the state layer. If you work in one state and live in another, the state where you work may still tax your wages, so check where the income is earned as well as where you live.
Can I move to a no-income-tax state mid-year and stop paying state tax?
Only from the day you become a resident. The year you move, you usually file a part-year resident return in the old state and pay its tax on what you earned while living there, plus any income still sourced to it. After that, wages earned as a resident of a no-tax state are not taxed by your new state.
- Alaska Department of Revenue — Personal Income →
- Florida Department of Revenue →
- Nevada Department of Taxation — Income Tax in Nevada →
- New Hampshire Department of Revenue Administration — Interest & Dividends Tax →
- South Dakota Department of Revenue — Individual taxes →
- Tennessee Department of Revenue — Hall Income Tax →
- Texas Comptroller of Public Accounts →
- Washington Department of Revenue — Income tax; Capital gains tax →
- State of Wyoming — About Wyoming (wyo.gov) →
- Washington DOR — Capital gains tax →
- Washington DOR — New tiered rates for the capital gains tax →