The 9 States With No Income Tax in 2026 (Ranked by Total Tax Burden)

If you’re looking to keep more of your paycheck, moving to a state with no income tax sounds like a no-brainer. Nine U.S. states don’t charge any tax on your wages. But before you pack your bags, you need to know the full picture: “no income tax” does not always mean “low taxes.”

In this guide, we’ll walk through all nine states, explain how they make up for lost income tax revenue, and rank them by the total tax burden you’d actually face in 2026.

The Quick List: All 9 No-Income-Tax States

These states have one thing in common: they don’t tax your earned wages. But that’s often where the similarities end. Each state has a very different approach to funding its government, and some of those approaches hit your wallet harder than you might expect.

Why “No Income Tax” Doesn’t Mean “Low Taxes”

Every state needs money to pay for roads, schools, police, and other public services. If a state doesn’t collect income tax, it has to get that money somewhere else. The two most common substitutes are:

• Higher sales taxes — You pay more every time you buy something.
• Higher property taxes — You pay more on the value of your home each year.

Some states also rely on natural resources (oil, gas, minerals) or tourism and gambling revenue. The key takeaway: you need to look at your total tax burden — not just income tax — to know how much you’ll actually pay.

According to the WalletHub 2025 State Tax Burden Study, several no-income-tax states still land in the middle of the pack when you add up all taxes combined.

State-by-State Breakdown

1. Alaska — The True Tax Haven

Alaska is the only state that charges no income tax and no statewide sales tax. On top of that, Alaska pays its residents an annual check called the Permanent Fund Dividend (PFD). In 2024, that dividend was $1,702 per person. The PFD comes from investment earnings on the state’s oil wealth, so you literally get paid just for living there.

The catch? Alaska has one of the highest costs of living in the country. Groceries, housing, and heating all cost significantly more. Some local municipalities also charge their own sales taxes (up to 7.5%). Still, for pure tax savings, Alaska is hard to beat.

2. Florida — The Most Popular No-Tax State

Florida is the top destination for people looking to escape state income tax. With no tax on wages, retirement income, or Social Security, it’s especially popular with retirees. Florida does charge a 6% state sales tax (up to 8.5% with local additions), which is how it funds much of its government.

Property taxes in Florida average about 0.80% of home value, which is below the national average. Plus, Florida’s Homestead Exemption knocks up to $50,000 off your home’s assessed value for tax purposes.

Calculate your Florida paycheck →

3. Nevada — Funded by Tourism and Gaming

Nevada’s economy is built on Las Vegas, and that shows in its tax structure. There’s no income tax, and the state relies heavily on gaming taxes, hotel room taxes, and tourism-related revenue. Visitors essentially subsidize the state budget for residents.

Nevada’s state sales tax is 6.85%, and local taxes can push that up to 8.375% in the Las Vegas area. Property taxes are moderate at around 0.53%, one of the lowest in the nation.

Calculate your Nevada paycheck →

4. New Hampshire — No Wage Tax, But Watch the Property Tax

New Hampshire doesn’t tax your wages or salary. It used to tax interest and dividend income at 5%, but that tax has been phasing out since 2023 and drops to 0% starting January 1, 2025. So by 2026, New Hampshire truly has no income tax of any kind.

Here’s the tradeoff: New Hampshire has some of the highest property taxes in the country, averaging about 1.86% of home value. There’s also no state sales tax, which is great for shopping but means property taxes carry even more of the load.

Calculate your New Hampshire paycheck →

5. South Dakota — Low Taxes, Low Cost of Living

South Dakota consistently ranks as one of the most tax-friendly states in America. No income tax, a reasonable 4.5% state sales tax, and property taxes that average about 1.08% of home value. The cost of living is also well below the national average, which means your dollar goes further.

The state funds itself largely through sales taxes and fees. According to the Tax Foundation, South Dakota has one of the lowest overall state and local tax burdens in the nation.

Calculate your South Dakota paycheck →

6. Tennessee — Fully Tax-Free Since 2021

Tennessee never taxed wages, but it used to charge a tax on interest and dividend income (called the Hall Income Tax). That tax was fully repealed on January 1, 2021. Today, Tennessee has zero income tax of any kind.

To make up for it, Tennessee has one of the highest combined sales tax rates in the country — the state rate is 7%, and local additions can push it to 9.75%. Groceries are taxed at a reduced rate of 4%. Property taxes, however, are quite low at around 0.56%.

Calculate your Tennessee paycheck →

7. Texas — No Income Tax, But High Property Taxes

Texas is the second-largest state by population, and “no state income tax” is a big part of its brand. But Texas makes up for it with property taxes that average about 1.60% of home value — well above the national average of roughly 0.99%.

On a $350,000 home, that’s about $5,600 per year in property taxes alone. Texas also charges a 6.25% state sales tax (up to 8.25% with local taxes). According to the Texas Comptroller, sales and property taxes together account for the vast majority of state and local revenue.

Calculate your Texas paycheck →

8. Washington — No Income Tax, But a New Capital Gains Tax

Washington State has no traditional income tax on wages. However, starting in 2022, it introduced a 7% tax on capital gains (profits from selling investments like stocks) for gains exceeding $250,000 per year. This was upheld by the Washington State Supreme Court in 2023.

For most workers earning a regular salary, this capital gains tax won’t apply. Washington’s state sales tax is 6.5%, and with local taxes it can reach 10.25% in Seattle. Property taxes average about 0.87%, which is moderate.

Calculate your Washington paycheck →

9. Wyoming — Mineral Wealth Keeps Taxes Low

Wyoming has no income tax, and its small population (about 580,000 people) is supported by massive revenue from coal, oil, natural gas, and mineral extraction. The state charges severance taxes on natural resources, which brings in billions of dollars that would otherwise have to come from residents.

Wyoming’s state sales tax is just 4% (up to 6% with local taxes), and property taxes average about 0.55%. The overall tax burden is among the lowest in the nation. The tradeoff is that jobs can be limited outside of energy, agriculture, and tourism.

Calculate your Wyoming paycheck →

Total Tax Burden Comparison at $75,000 Salary

The table below estimates the total state and local tax burden for a single filer earning $75,000 per year in each of the nine no-income-tax states. This includes property taxes (assuming a $300,000 home), sales taxes (based on average spending patterns), and any other significant state-level taxes. Federal taxes are the same in every state, so they’re not included.

Note: Estimates based on average effective sales and property tax rates from the Tax Foundation and WalletHub. Actual amounts depend on your spending habits, home value, and local rates. Ranked by lowest total burden first.

Key Takeaways

• Alaska and Wyoming have the lowest total tax burdens of the nine, thanks to natural resource revenue that reduces the need for taxes on residents.
• Texas and New Hampshire have the highest total burdens on this list, driven by steep property taxes. If you own an expensive home, you may pay more overall than you would in some income-tax states.
• Tennessee and Washington have high sales taxes that add up quickly on everyday purchases.
• Florida and Nevada sit in the middle, with moderate property taxes and sales taxes partially funded by tourism.

How to Decide If a No-Income-Tax State Is Right for You

The best state for you depends on your personal situation. Ask yourself these questions:

• Do you own a home (or plan to)? If so, check property tax rates carefully. Texas and New Hampshire can wipe out your income tax savings with property taxes.
• Do you spend a lot? High sales tax states like Tennessee and Washington will cost more for big spenders.
• Do you have investment income? Washington’s capital gains tax could matter if you sell stocks or businesses.
• What’s the cost of living? Alaska has great tax rates, but everything from food to heating costs more.
• Where are the jobs in your field? Tax savings don’t matter if you take a pay cut to move.

The Bottom Line

Living in a no-income-tax state can save you thousands of dollars per year — but only if you understand the full picture. States like Alaska and Wyoming are genuinely low-tax across the board. Others, like Texas and New Hampshire, shift the tax burden to homeowners through high property taxes. And states like Tennessee and Washington hit you at the cash register with some of the highest sales taxes in the country.

Before making any decisions based on taxes alone, use our free state calculators to see exactly how much you’d take home. The numbers might surprise you.

Sources

• Tax Foundation — State-Local Tax Burden Rankings
• WalletHub — 2025 State Tax Burden Study
• Alaska Permanent Fund Dividend Division
• Texas Comptroller of Public Accounts
• Washington Department of Revenue — Capital Gains Tax
• Tennessee Department of Revenue — Hall Income Tax
• Florida Department of Revenue — Homestead Exemption