9 States With No Income Tax: Full Comparison for 2026
Alaska, Florida, Nevada, and 6 other states charge zero income tax. But watch out for higher property taxes and sales tax.
Nine states charge zero state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. On a $100,000 salary, living in Texas instead of California saves roughly $6,000 to $8,000 per year in state income tax alone. But no-income-tax states often make up revenue through higher property taxes, sales taxes, or reduced public services. Here is the full comparison.
All 9 No-Income-Tax States Compared
| State | Property Tax Rate | State Sales Tax | Median Home Price | Cost of Living Index |
|---|---|---|---|---|
| Alaska | 1.07% | 0.00% | $330,000 | 127 |
| Florida | 0.89% | 6.00% | $410,000 | 103 |
| Nevada | 0.53% | 6.85% | $425,000 | 104 |
| New Hampshire | 1.86% | 0.00% | $475,000 | 115 |
| South Dakota | 1.14% | 4.50% | $290,000 | 98 |
| Tennessee | 0.67% | 7.00% | $315,000 | 93 |
| Texas | 1.68% | 6.25% | $340,000 | 96 |
| Washington | 0.87% | 6.50% | $580,000 | 115 |
| Wyoming | 0.55% | 4.00% | $310,000 | 99 |
Cost of living index: 100 = national average. Above 100 is more expensive than average.
The Catch: Higher Taxes Elsewhere
No-income-tax states still need revenue. Here is how they get it:
- Texas charges the second-highest property taxes in the nation at 1.68%. On a $340,000 home, that is $5,712 per year. Plus 6.25% base sales tax (up to 8.25% with local taxes).
- New Hampshire has the fourth-highest property tax rate at 1.86%. On a $475,000 home, that is $8,835 per year. However, it charges no sales tax, which partially offsets the property tax burden.
- Washington has a 6.50% state sales tax (up to 10.25% with local additions) and recently implemented a 7% capital gains tax on sales above $250,000. High home prices ($580,000 median) also drive up property tax dollars even at a moderate rate.
- Tennessee has one of the highest combined sales tax rates in the country at 9.55% (state + average local). Groceries are taxed at a reduced rate but still not exempt.
- Alaska has the lowest overall tax burden — no income tax and no sales tax. However, the high cost of living (index 127) and remote location offset some savings.
Salary Comparison: $100,000 Income
Here is your approximate take-home pay on a $100,000 salary in no-tax states compared to high-tax states (single filer, standard deduction, 2026 estimates):
| State | State Income Tax | Federal Tax | FICA | Take-Home Pay |
|---|---|---|---|---|
| Texas | $0 | $14,260 | $7,650 | $78,090 |
| Florida | $0 | $14,260 | $7,650 | $78,090 |
| Tennessee | $0 | $14,260 | $7,650 | $78,090 |
| Wyoming | $0 | $14,260 | $7,650 | $78,090 |
| Colorado | $4,400 | $14,260 | $7,650 | $73,690 |
| New York | $5,900 | $14,260 | $7,650 | $72,190 |
| California | $6,200 | $14,260 | $7,650 | $71,890 |
Living in Texas or Florida instead of California means approximately $6,200 more per year in take-home pay — $516 extra per month. Over a 20-year career, that is $124,000 in tax savings (not accounting for raises).
State-by-State Notes
Alaska: The only state with no income tax and no sales tax. Residents receive an annual Permanent Fund Dividend (roughly $1,300-$1,900 per year). Downsides: extremely high cost of living, limited job market outside oil and government, harsh climate.
Florida: The most popular destination for tax-motivated movers. Strong job market, no income tax, moderate property taxes. Watch out for high homeowners insurance (hurricane risk) averaging $3,000-$5,000 per year and rising.
Nevada: Low property taxes (0.53%) and no income tax make it attractive. Las Vegas has a relatively low cost of living. High sales tax (6.85% state + local) hits consumer spending.
New Hampshire: No income tax and no sales tax, but very high property taxes (1.86%). Taxes interest and dividends income only at 3% (being phased out). Good for W-2 earners, less advantageous for investors and retirees with dividend income.
South Dakota: Very low overall tax burden with affordable housing ($290,000 median). Excellent for retirees — no income tax on Social Security or retirement distributions. Sparse population and limited urban amenities.
Tennessee: No income tax and very affordable cost of living (index 93). Nashville and Memphis offer strong job markets. High sales tax (7% state + local additions up to 9.75%) impacts daily spending.
Texas: Booming economy and no income tax, but property taxes are among the highest nationally. On a $400,000 home, expect $6,720+ per year in property tax. Best for renters and those in lower-property-tax counties.
Washington: Strong tech economy (Seattle, Bellevue) with no income tax. However, high home prices ($580,000 median), steep sales tax (up to 10.25%), and a new capital gains tax reduce the advantage. Best for high-W2 earners who rent.
Wyoming: The lowest overall tax burden of any state. Very low property taxes, low sales tax, no income tax. Minimal population, limited job market, and rural lifestyle are not for everyone.
Best No-Tax State by Situation
- Young professional renting: Washington (strong job market, high salaries, no property tax concern)
- Family buying a home: Tennessee or Florida (affordable housing, moderate property taxes)
- Retiree: South Dakota or Wyoming (low taxes across the board, no tax on retirement income)
- Remote worker with flexibility: Wyoming or South Dakota (lowest overall tax burden and cost of living)
- High earner: Texas or Florida (large economies, no income tax, moderate to affordable living)
Practical Takeaway
No income tax does not automatically mean low taxes. Compare the full picture: property tax, sales tax, insurance costs, and cost of living. Use our salary calculator to compare your take-home pay across states and see exactly how much you save — or lose — by relocating. The best no-income-tax state depends on whether you are renting or buying, your income level, and your lifestyle priorities.
Try it yourself
Run the numbers with our interactive calculator — drag a slider and watch the chart update instantly.
Open calculatorThis article is for educational purposes only and does not constitute financial advice. Consult a licensed financial advisor for decisions specific to your situation.