9 States With No Income Tax in 2026
In 2026, there are 9 US states with no earned state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Living in these states allows workers to keep 100% of their wages after federal income taxes and FICA, saving thousands compared to high-tax states.
The 9 Zero-Income-Tax States at a Glance (2026)
| State | Earned Income Tax | State Sales Tax Rate | Average Property Tax | Primary Revenue Source |
|---|---|---|---|---|
| Alaska (AK) | 0.0% | 0.0% (Local only) | 1.18% | Oil & Mineral Royalties, Permanent Fund |
| Florida (FL) | 0.0% | 6.0% (Avg 7.0% w/ local) | 0.91% | Tourism, Hospitality, Real Estate doc stamps |
| Nevada (NV) | 0.0% | 6.85% (Avg 8.23% w/ local) | 0.55% | Gaming, Entertainment, Casino taxes |
| New Hampshire (NH) | 0.0% | 0.0% | 1.93% | High Property Taxes, Business Profits Tax |
| South Dakota (SD) | 0.0% | 4.2% (Avg 6.4% w/ local) | 1.17% | Sales Tax, Bank Franchise Taxes |
| Tennessee (TN) | 0.0% | 7.0% (Avg 9.55% w/ local) | 0.67% | High State Sales Tax & Business Taxes |
| Texas (TX) | 0.0% | 6.25% (Avg 8.20% w/ local) | 1.68% – 2.10% | Local Property Taxes, Oil/Gas Production |
| Washington (WA) | 0.0%* | 6.5% (Avg 8.86% – 10.3% w/ local) | 0.94% | High Sales Tax, B&O Tax, 7% Capital Gains >$250k |
| Wyoming (WY) | 0.0% | 4.0% (Avg 5.36% w/ local) | 0.56% | Coal, Oil & Natural Gas Severance Taxes |
Take-Home Pay Comparison: 0% Tax States vs. California & New York
How much actual cash do you save by living in a zero-income-tax state? Below is the 2026 take-home pay comparison for a Single filer across three common salary benchmarks:
| Annual Salary | 0% Income Tax States (TX, FL, WA, etc.) | California (FTB Sched X) | New York (State Only) | Zero-Tax Annual Advantage |
|---|---|---|---|---|
| $75,000 / year | $61,354.50 | $58,401.64 | $57,694.50 | +$2,952.86 / yr |
| $100,000 / year | $79,180.00 | $74,269.14 | $72,980.00 | +$4,910.86 / yr |
| $150,000 / year | $114,355.00 | $104,798.14 | $105,055.00 | +$9,556.86 / yr |
The Tradeoffs: How No-Income-Tax States Fund Themselves
State governments require revenue to maintain roads, schools, and emergency infrastructure. When income is untaxed, states compensate through other levies:
- Higher Property Taxes: Texas and New Hampshire rank among the highest effective property tax rates in the nation (often $6,000–$10,000+ per year on median homes).
- Higher Sales Taxes: Tennessee (9.55% combined avg) and Washington (up to 10.3%) make everyday retail goods and restaurant meals more expensive.
- Natural Resources & Tourism: Alaska, Wyoming, Florida, and Nevada export significant tax burdens to tourists and energy consumers outside their borders.
Frequently Asked Questions (FAQ)
What happened to New Hampshire's interest and dividend tax?
New Hampshire never taxed wage income. Its historical tax on dividends and interest income was progressively phased down and officially reached 0.0% by Tax Year 2026, making NH completely free of individual income tax.
Do I still have to pay federal taxes in a no-income-tax state?
Yes. Federal income taxes (IRS brackets 10% to 37%) and FICA payroll taxes (6.2% Social Security + 1.45% Medicare) apply uniformly across all 50 US states.
Does moving to a zero-tax state automatically save me money?
For high earners ($100k+), income tax savings almost always outweigh higher property or sales taxes. For lower earners or renters, local sales taxes and housing costs can occasionally offset the benefit.
Compare Paychecks Across 0% Income Tax States
Explore interactive take-home pay calculations in zero-tax states: