Nine US states collect no personal state income tax. For residents of high-tax states like California or New York, moving to one of these states can mean thousands more in take-home pay every year — without changing your salary at all.
The 9 No-Income-Tax States (2026)
| State | Note |
|---|---|
| Alaska | No income tax; also has no state sales tax. Residents receive annual dividend checks. |
| Florida | No income tax; relies on sales tax and tourism revenue. |
| Nevada | No income tax; funded largely by gaming and tourism taxes. |
| New Hampshire | No wage income tax; interest and dividends tax phased out by 2027. |
| South Dakota | No income tax; one of the lowest overall tax burden states. |
| Tennessee | No wage income tax; investment income tax fully phased out as of 2022. |
| Texas | No income tax; funds state via high property and sales taxes. |
| Washington | No income tax; has a capital gains tax (7%) on gains above $250,000. |
| Wyoming | No income tax; low overall tax burden. |
How Much Do You Save? (vs California)
| Salary | CA Take-Home | TX Take-Home | Annual Savings |
|---|---|---|---|
| $60,000 | $48,476 | $50,390 | $1,914 |
| $75,000 | $58,462 | $61,593 | $3,131 |
| $100,000 | $73,724 | $79,180 | $5,456 |
| $150,000 | $103,685 | $113,791 | $10,106 |
| $200,000 | $133,027 | $147,527 | $14,500 |
The Hidden Costs of No-Income-Tax States
States without an income tax still need revenue — they typically make it up through:
- Higher property taxes — Texas has among the highest property tax rates in the US (around 1.6–2.5% of assessed value). A $400,000 home in Texas costs $6,400–$10,000/year in property taxes, vs ~$5,000 in California on the same value.
- Higher sales taxes — Texas has a 6.25% state sales tax (up to 8.25% with local add-ons). Florida is 6% (up to 7.5%).
- Higher fees and tolls — Some no-tax states rely more on user fees.
For high earners, the income tax savings almost always exceed the higher property and sales tax costs. For lower earners, the calculus is more complex.
Compare take-home pay in any two states side by side.
Compare States →