Skip to content
$DollarCalcsAll calculators

States With No Income Tax in 2026 — and What They Charge Instead

Updated August 23, 2026 · DollarCalcs

Nine states levy no tax on wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. New Hampshire completed the club in 2025 when it repealed its tax on interest and dividends; Washington still taxes large capital gains, but not paychecks.

On a $75,000 salary, skipping state income tax is worth anywhere from a few hundred dollars to several thousand a year versus high-tax states — moving that salary from New York State to Florida keeps an extra $3,453 annually, and more for a New York City resident.

The catch: states tax something

States without income taxes fund themselves elsewhere, usually at the register or through property. Tennessee pairs no income tax with the nation's second-highest average sales tax (9.61% combined). Washington sits at 9.57%, Texas at 8.2% with famously high property taxes, and New Hampshire has no sales tax but among the highest property taxes in the country. Alaska is the outlier, funded largely by oil revenue.

That means the winner depends on how you earn and spend. High earners who rent generally do best in no-income-tax states; a modest earner who owns an expensive home in Texas can pay more total tax than they would in a low-income-tax state like Arizona (2.5% flat) or North Dakota.

No-income-tax states at a glance

Sales tax figures are 2026 combined state + average local rates; take-home is a single filer on $75,000.

The nine no-income-tax states
StateTake-home on $75KCombined sales taxWhat funds the state
Alaska$61,5931.82% (local only)Oil revenue; local sales taxes
Florida$61,5936.98%Sales tax, tourism
Nevada$61,5938.24%Sales tax, gaming
New Hampshire$61,5930%Property taxes, business taxes
South Dakota$61,5936.11%Sales tax
Tennessee$61,5939.61%Sales tax
Texas$61,5938.20%Sales & property taxes
Washington$61,5939.57%Sales tax; capital gains tax
Wyoming$61,5935.39%Mineral revenue, sales tax

Thinking about moving?

Compare your real paycheck first, then layer in housing. Our state paycheck calculators show the exact income-tax difference, and the state sales tax pages show what you'd pay at the register. And remember: your state of residence for tax purposes follows where you actually live and work, not where you'd like to be taxed — remote workers can owe tax to the state their employer requires them to work in.

Frequently asked questions

+Which state has no income tax and no sales tax?

New Hampshire is the only one — no tax on wages and no general sales tax. It relies heavily on property taxes and business taxes instead. Alaska comes close: no state income or sales tax, though many localities levy their own sales taxes.

+Do no-income-tax states have higher property taxes?

Often. Texas and New Hampshire rank among the highest effective property-tax states. Florida and Nevada are closer to average, and Alaska and Wyoming keep most taxes low thanks to resource revenue.

+If I work remotely, can I just claim residency in Texas or Florida?

Only if you genuinely live there. States determine residency by where you actually reside (often a 183-day rule plus domicile factors), and some states tax remote workers whose employer is based there. Changing residency on paper without moving invites an audit.