States with no income tax

Nine states leave your paycheck alone. Here they are, what each taxes instead, and the catches worth knowing before you move.

What you still pay

No state income tax doesn’t mean no tax. Federal income tax, Social Security and Medicare are the same everywhere. States make up the revenue elsewhere: sales tax (Tennessee and Washington have some of the highest combined rates), property tax (Texas and New Hampshire rank near the top), or natural-resource revenue (Alaska and Wyoming).

How much is it worth?

For a single earner on $100,000 in 2026 the difference is roughly $0 in Texas versus about $5,500 in California, $5,300 in New York, or $7,200 in Oregon. Try your own income on the state tax calculator; its comparison list ranks all 51 at once.

Seven more states with a flat rate under 4%

If a full exit isn’t possible, flat-tax states such as Arizona (2.5%), Indiana (2.95% plus county tax), Pennsylvania (3.07% plus local), Louisiana (3%), Kentucky (3.5%) and Iowa (3.8%) tax middle incomes lightly too.

Questions people ask

How many states have no income tax?

Nine: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. New Hampshire joined the list fully in 2025 when its tax on interest and dividends ended.

Are no-income-tax states cheaper overall?

Not always. They raise money in other ways: Washington and Tennessee have some of the highest combined sales tax rates, and Texas and New Hampshire have high property taxes. The best state depends on how much you earn, spend and own.

If I move to a no-tax state, when do I stop paying my old state?

Once you become a resident of the new state (typically: home, driver’s licence, voter registration, where you spend most of your time). For the move year you usually file a part-year return in the old state. States such as California and New York audit high earners who claim to have left.

Do remote workers owe tax to their employer’s state?

Usually not, but a few states, including New York, Pennsylvania, Delaware, Nebraska and Connecticut in some cases, apply a “convenience of the employer” rule that can tax remote employees of in-state companies.