9 States With No Income Tax in 2026: The Full List

The 9 states with no income tax in 2026

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming levy no individual income tax on wages in 2026. That is the full list. It has not changed in years, though New Hampshire only joined the club fully on January 1, 2025, when its tax on interest and dividends was repealed.

Before you start packing, understand what “no income tax” actually means. None of these states tax your paycheck. But every one of them collects revenue somewhere else, and for some residents the total bill is higher than in states with an income tax.

No-income-tax states compared: sales tax, property tax, and revenue sources

Sales tax figures: Tax Foundation, 2026 midyear. Property tax effective rates: WalletHub via CPA Practice Advisor, 2026.

* Alaska has no statewide sales tax; 1.82% reflects local taxes only. ** Tennessee property tax: WalletHub reports 0.46%; Tax Foundation reports 0.52% using Census methodology. Both confirm Tennessee has among the lowest property tax rates nationally.

How each state makes up the money

Texas and Tennessee lean hardest on sales tax. Tennessee’s combined state-plus-local rate averages 9.61 percent, the second-highest in the country after Louisiana (Tax Foundation, July 2026). Texas pairs zero income tax with property taxes at 1.49 percent effective rate, among the highest nationally.

Florida and Nevada tax tourists instead of residents. Hotel taxes, rental car surcharges, and in Nevada’s case gaming revenue carry a large share of the budget. Residents still pay sales tax, but visitors subsidize a meaningful chunk.

Alaska and Wyoming tax oil and minerals. Severance taxes on extraction fund much of state government. Alaska goes further: it has no statewide sales tax either, and residents receive an annual Permanent Fund dividend from oil revenue.

New Hampshire has no sales tax and no wage tax, but property taxes at 1.66 percent effective rate are the fourth-highest in America. The state funds itself largely through local property levies.

South Dakota relies on sales tax with a broad base and few exemptions.

Washington is the complicated one. No tax on wages, but since 2022 the state has imposed a 7 percent excise tax on long-term capital gains above the annual exemption (about $270,000), rising to 9.9 percent on gains above $1 million from tax year 2025 (Washington Department of Revenue). Earn most of your income from investments rather than a salary, and Washington is not the haven it appears to be.

Does “no income tax” mean you pay less overall? A real example

Take two renters, each earning $60,000. One lives in Texas, the other in Colorado (flat 4.40% income tax; confirm the 2026 rate with the Colorado Department of Revenue).

The Texas renter pays $0 in state income tax. On $25,000 of taxable spending at Texas’s 8.20% average combined sales tax, she pays about $2,050 in sales tax.

Colorado taxes federal taxable income, not gross pay. After a standard deduction of roughly $16,100, taxable income is about $43,900, so the Colorado renter pays about $1,930 in income tax. At Colorado’s 7.89% average combined sales tax, the same $25,000 in spending adds about $1,973. Total: roughly $3,900 versus $2,050 in Texas.

On direct taxes, the Texas renter comes out ahead by about $1,850. Property taxes passed through in rent could narrow that gap, but it’s hard to measure. For homeowners the picture can flip: a $350,000 home in Texas at a 1.49% effective rate means about $5,215 a year in property tax. A Colorado homeowner pays property tax too (about 0.50% effective rate, or $1,750 on the same home), so compare that bill, not just the income tax. Even adding Colorado’s $1,930 income tax, the Colorado homeowner’s $3,680 total is well below Texas’s $5,215. (Colorado homeowners do pay more for insurance — $5,511 a year on average, third-highest nationally — but that narrows the gap only modestly.)

Assumptions: single filer, standard deduction, no other income or credits, $25,000 in taxable spending.

The honest conclusion: renters at $60,000 likely save in Texas. Homeowners may not. Run your own numbers based on income, spending, and home value.

What to check before moving for taxes

First, look at the full picture for your situation: income tax, sales tax on what you actually buy, property tax on the home you would own, and any excise taxes that hit you specifically. Second, remember that working remotely does not automatically exempt you — New York’s “convenience of the employer” rule means if your employer is in New York and you work remotely from Florida for your own convenience, New York can still tax that income. Third, factor in non-tax costs. Florida’s average homeowners insurance premium is $8,471 a year, the highest in the country and nearly triple the national average of $2,872 (Insurance.com, 2026).

Frequently asked questions

Does remote work change my state tax?

Not automatically. Most states tax income where the work is physically performed. But watch out for New York’s “convenience of the employer” rule: if your employer is based in New York and you work remotely from another state for your own convenience (not because the employer requires it), New York taxes that income as if you worked in Manhattan. A handful of states have some form of this rule, with New York’s being the most aggressive. If you live in Florida but work remotely for a New York firm, you could owe New York income tax despite Florida having none.

Is Washington really a no-income-tax state?

For wage income, yes. But Washington taxes long-term capital gains at 7 percent above the annual exemption (about $270,000), rising to 9.9 percent on gains above $1 million from tax year 2025. If most of your income comes from investments rather than a salary, Washington’s tax picture looks very different.

Which no-income-tax state has the lowest total tax burden?

It depends on your situation, but Wyoming often ranks among the lowest for total burden because energy revenue subsidizes government without heavy sales or property taxes on residents. Alaska also benefits from oil revenue and has no statewide sales tax (plus residents get an annual dividend), though its property taxes are above average at 1.11%. New Hampshire and Texas can be expensive for homeowners because of high property taxes. Run your own numbers based on income, spending, and home value.

Did New Hampshire always have no income tax?

No. New Hampshire taxed interest and dividend income until January 1, 2025, when the tax was fully repealed. Before that, it was a partial exception. As of 2026, it is a full no-income-tax state.

Do these states tax retirement income?

None of the nine tax pension, 401(k), or Social Security income at the state level, since they have no individual income tax. However, property and sales taxes still apply, which is why some retirees find the total cost higher than expected.

Compare the complete 50-state income tax picture, including every rate and bracket, on our state income tax rates table.