Quick Answer
Nine states have no income tax: AK, FL, NV, NH, SD, TN, TX, WA, WY. On $150K, you save $5,000-$15,000/year vs high-tax states. But most compensate with higher property or sales taxes.
Nine US states charge absolutely zero individual income tax. For high earners, moving to one of these states can save $5,000 to $15,000 or more per year in state taxes alone. But no-tax states are not free rides — they raise revenue through other means, and the total financial picture is more nuanced than the headline suggests.
Here is the complete guide to all nine no-income-tax states in 2026, including what they tax instead, the real savings at different income levels, and the trade-offs you should consider.
Which Nine States Have No Income Tax?
- Alaska (AK)
- Florida (FL)
- Nevada (NV)
- New Hampshire (NH) — taxes interest and dividends only, not earned income
- South Dakota (SD)
- Tennessee (TN)
- Texas (TX)
- Washington (WA)
- Wyoming (WY)
See how your tax bill changes in each state with our tax calculator.
No-Income-Tax States: What They Tax Instead
| State | Property Tax Rate | Sales Tax (Max) | Overall COL Index |
| Alaska | 1.0-1.2% | 0% (local varies) | 125 |
| Florida | 0.8-1.1% | 7.5% | 100-115 |
| Nevada | 0.5-0.6% | 8.4% | 104 |
| New Hampshire | 1.9-2.1% | 0% | 112 |
| South Dakota | 1.2-1.3% | 6.5% | 92 |
| Tennessee | 0.6-0.7% | 9.75% | 90-105 |
| Texas | 1.6-2.2% | 8.25% | 93-108 |
| Washington | 0.9-1.0% | 10.25% | 95-149 |
| Wyoming | 0.5-0.6% | 6% | 95 |
How Much You Save on $150K
Here is the annual state income tax on $150,000 (single filer) in several high-tax states:
- California: ~$9,800
- New York: ~$8,200 (plus ~$5,400 NYC tax if applicable)
- New Jersey: ~$7,600
- Oregon: ~$12,300
- Minnesota: ~$8,700
- Massachusetts: ~$7,500
Moving from California to Texas or Florida saves approximately $9,800 per year. Over 10 years, that is nearly $100,000 in tax savings.
Model the exact savings with our relocation calculator.
What No-Tax States Tax Instead
Texas
- Property taxes: 1.6-2.2% of home value — among the highest nationally
- Sales tax: 6.25% state + up to 2% local = 8.25%
- Best for: Renters and high earners with modest homes
Florida
- Property taxes: Moderate at 0.8-1.1%
- Sales tax: 6% state + up to 1.5% local
- Insurance: Extremely expensive homeowners insurance ($3,000-$10,000/yr)
- Best for: Retirees and high earners who rent
Washington
- Sales tax: 6.5% state + up to 4% local = 10%+ in Seattle
- Capital gains tax: 7% on gains above $270,000
- Best for: High-salary W-2 earners
Nevada
- Sales tax: 6.85% state + up to 1.53% local
- Property taxes: Low at ~0.5%
- Best for: Anyone — low taxes across the board
Tennessee
- Sales tax: 7% state + up to 2.75% local = 9.75% — highest combined rate nationally
- Property taxes: Low at ~0.6%
- Best for: High earners willing to accept high sales tax
Alaska
- No state sales tax (some municipalities levy local sales tax)
- Permanent Fund Dividend: $1,300-$3,200/year paid to residents
- Best for: Those who want the lowest overall tax burden
Wyoming and South Dakota
- Low sales tax (4-4.5% state), low property taxes
- Best for: Remote workers and retirees seeking minimal taxation
Use our city comparison tool to see a side-by-side breakdown of any two cities.
What Are the Pros and Cons of No-Income-Tax States?
Advantages:
- Immediate boost to take-home pay
- Simpler tax filing (no state return)
- Savings scale with income
- Particularly valuable for self-employed workers
Disadvantages:
- Higher property or sales taxes may offset savings
- Public services may be funded at lower levels
- Smaller job markets in some no-tax states
- Climate and lifestyle trade-offs are real
Run the numbers on your income, spending, and housing costs in both states. Use the tax calculator for both states, compare cost of living with the cost of living calculator, and model the full relocation impact with the relocation calculator.
People Also Ask
Which state has the lowest overall taxes?
Wyoming, Nevada, and Alaska consistently rank lowest in overall tax burden. Wyoming has no income tax, low sales tax, and low property taxes. However, services and job options may be limited compared to larger states.
Do no-income-tax states have higher property taxes?
Often yes. Texas has property taxes averaging 1.6-1.8%, well above the national average of 1.1%. New Hampshire funds most services through property tax. Florida's property taxes are moderate but rising fast.
Is it worth moving to a no-income-tax state?
It depends on your income level and the tradeoffs. On $150K+, you save $5,000-$15,000/year in income tax. But factor in higher property taxes, potentially higher insurance costs, and quality of life differences before deciding.