Nine US states don't tax your income, which can mean thousands more in your paycheck each year. But no income tax doesn't always mean lower overall taxes.
The 9 No-Income-Tax States
- Alaska — No income tax, no sales tax, plus an annual PFD dividend
- Florida — Most popular choice; warm weather, strong economy
- Nevada — No income or corporate tax; gaming revenue funds the state
- New Hampshire — No income tax on wages; very high property taxes
- South Dakota — Low cost of living; no income, estate, or inheritance tax
- Tennessee — Nashville boom; fully eliminated investment income tax in 2021
- Texas — Largest no-tax state; strong job market but high property taxes
- Washington — Tech hub (Amazon, Microsoft); has 7% capital gains tax above $270K
- Wyoming — Lowest population; no income, corporate, or estate tax
But Watch for Other Taxes
States without income tax often make up revenue through higher property taxes (Texas, New Hampshire), sales taxes (Tennessee, Washington), or other fees. Texas property taxes average 1.6-1.8% of home value, which on a $350,000 home is $5,600-6,300/year.
How Much Do You Actually Save?
On a $100,000 salary, moving from California (13.3% top rate) to Texas saves approximately $6,000-8,000 in state income tax. Moving from New York (10.9% + NYC tax) saves even more.
Compare your take-home pay across all 50 states with our paycheck calculator, or check specific state pages in our state calculator directory.