NoIncomeTaxStates.com
Not tax advice. State tax rules change. Consult a CPA before making relocation decisions. Last reviewed April 2026.

2026 Guide

Nine states charge no income tax. Which one actually costs you less?

"No income tax" is marketing, not math. Several of these states have the highest property taxes or sales taxes in the country. This guide does the honest accounting: total tax burden, cost of living, and who actually benefits by income level and lifestyle.

Calculate My Tax BurdenSee Rankings by Persona

Alaska

733K residents

A

total burden

Property

1.04%

Sales

0% state

CoL Index

127

No income or sales tax. PFD pays residents up to $2K/yr.

Florida

22.6M residents

A-

total burden

Property

0.86%

Sales

7.02% avg

CoL Index

103

Most popular retirement destination. Moderate property tax.

Nevada

3.2M residents

B+

total burden

Property

0.53%

Sales

8.23% avg

CoL Index

104

Lowest property tax. Gaming taxes fund the state budget.

New Hampshire*

1.4M residents

B

total burden

Property

1.86%

Sales

0% state

CoL Index

113

No income tax on wages, no sales tax. Very high property tax.

South Dakota

0.9M residents

A

total burden

Property

1.08%

Sales

6.10% avg

CoL Index

92

Low cost of living. Favorable trust laws. Very small population.

Tennessee

7.1M residents

B

total burden

Property

0.64%

Sales

9.55% avg

CoL Index

92

Highest combined sales tax in the nation. Low cost of living.

Texas

30.5M residents

B+

total burden

Property

1.60%

Sales

8.19% avg

CoL Index

94

Constitutionally banned income tax. 6th highest property tax.

Washington

7.8M residents

B

total burden

Property

0.94%

Sales

9.20% avg

CoL Index

111

7% capital gains tax on gains above $250K. High sales tax.

Wyoming

0.6M residents

A+

total burden

Property

0.56%

Sales

5.36% avg

CoL Index

96

Lowest total tax burden in the nation. Very low population.

* New Hampshire taxes interest and dividends above $2,400 at 3%, phasing to 0% by 2027. No tax on wages or salary. CoL Index: 100 = national average. Source: BEA Regional Price Parity 2024.

No income tax is not the same as low taxes

The Texan homeowner on a $450,000 house pays approximately $7,200 in property tax per year. A Californian in the same house pays around $3,195 in property tax. That $4,000 difference often exceeds the income tax California would have charged a median-income earner. Before relocating, run the full calculation. Use the calculator below.

The honest total-tax-burden picture

Three case studies. Real numbers. No spin.

TX

Texas: The Property Tax Trap

Texas ranks 6th in property tax nationally at 1.60%. On a $450K home: $7,200/yr in property tax alone. A California resident earning $120K pays roughly $10,200 in state income tax but only $3,195 in property tax. The net advantage of Texas only appears above around $180K household income.

TN

Tennessee: The Grocery Bill

Tennessee's combined sales tax averages 9.55%, the highest in the nation. A household spending $45,000 on taxable goods pays $4,298 in sales tax annually. Groceries are taxed at 4% state plus local additions. A family of four can spend $800 to $1,200 extra per year vs. a state with no sales tax on food.

NH

New Hampshire: The Quiet Trap

New Hampshire has no income tax on wages and no sales tax. But property taxes average 1.86%, 4th highest in the nation. On a $465,000 median-priced home: $8,649/yr. A retiree with $70K income and a $500K home pays more in property tax in NH than in income tax they would owe in most states.

Full total tax burden analysis for all 50 states

Total Tax Burden Calculator

Enter your financial details to see your estimated total state and local tax burden in every state, ranked from lowest to highest. Income tax is only part of the picture.

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$100,000/yr

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$400,000

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Auto: 35% of income = $35,000

Shows savings vs your current state

#State↕Income Tax↕Total▲vs California
1WyomingNo Income Tax$0$4,116-$9,137
2AlaskaNo Income Tax$0$4,797-$8,456
3NevadaNo Income Tax$0$5,001-$8,252
4FloridaNo Income Tax$0$5,897-$7,356
5TennesseeNo Income Tax$0$5,903-$7,350
6Delaware$3,630$5,910-$7,343
7Montana$3,245$6,205-$7,048
8South DakotaNo Income Tax$0$6,455-$6,798
9Arizona$1,375$6,785-$6,468
10WashingtonNo Income Tax$0$6,980-$6,273
11North Dakota$1,073$7,269-$5,984
12West Virginia$2,816$7,333-$5,920
13Utah$2,503$7,339-$5,914
14Colorado$2,420$7,347-$5,906
15New HampshireNo Income Tax$0$7,440-$5,813

Simplified estimates using average effective rates. Actual liability varies by filing status, deductions, and local jurisdictions. Not tax advice. Sources: Tax Foundation, state revenue departments.

Who actually benefits?

The benefit varies dramatically by income, lifestyle, and life stage. See the full persona ranking.

High earners ($200K+)

Strong benefit

Income tax savings of $10,000 to $30,000+ per year typically outweigh property or sales tax increases. The higher the income, the more compelling the move.

Retirees

Significant benefit

Social Security is not state-taxed in any of the 9 states. Pension and 401(k) withdrawals are also exempt. Lower spending reduces the sales tax impact.

Remote workers

Strong benefit (with caveats)

Keep a high-city salary while living in a no-tax state. Caveat: if your employer is in NY, CT, DE, NE, or PA, the convenience-of-employer rule may still apply.

Average earners ($50-80K)

Mixed results

Income tax savings of $2,000 to $4,000 per year are real but modest. Higher property or sales taxes in the destination state can close or reverse the gap.

Business owners

Depends on structure

Pass-through income benefits directly. C-corps face separate corporate rules. Washington has B&O tax; Texas has franchise tax. Wyoming and South Dakota are cleanest.

Low-income households

Minimal or negative

Little income tax liability to begin with. High sales taxes in states like Tennessee are regressive and can cost low-income households more than they save.

Per-state deep dives

Dedicated pages for each state with property tax breakdowns, sales tax detail, retirement implications, residency rules, and an honest verdict.

AK

Alaska

FL

Florida

NV

Nevada

NH

New Hampshire

SD

South Dakota

TN

Tennessee

TX

Texas

WA

Washington

WY

Wyoming

Head-to-head comparisons

Side-by-side tax breakdowns for the most common state-vs-state decisions.

Florida vs Texas

The two biggest no-tax states

Tennessee vs Florida

Lowest CoL vs sunshine state

Texas vs Tennessee

Property tax vs sales tax

Nevada vs Florida

West coast vs east coast

Wyoming vs South Dakota

The two prairie champions

Frequently Asked Questions

Which states have no income tax?
Nine US states have no income tax on earned income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire taxes interest and dividends above $2,400 at 3%, phasing to 0% by 2027.
Does no income tax mean no taxes at all?
No. States collect revenue through property taxes, sales taxes, excise taxes, and fees. Texas has the 6th highest property tax rate at 1.60%. Tennessee has the highest combined sales tax at 9.55%. New Hampshire has the 4th highest property tax at 1.86%.
Which no-income-tax state has the lowest overall taxes?
Wyoming consistently ranks lowest for total tax burden. It has no income tax, combined sales taxes averaging 5.36%, and property taxes at just 0.56%. Alaska is close on the math but has a cost of living 27.5% above the national average.
Is it worth moving to a no-income-tax state?
It depends on your income. High earners ($200K+) typically save $10,000 to $30,000+ per year. Average earners ($50-80K) may save $2,000 to $4,000 in income tax but could lose those savings to higher property or sales taxes. Run the calculator above with your own numbers.
Do I have to pay income tax if I work remotely from a no-income-tax state?
Generally no. But five states have 'convenience of the employer' rules: New York, Connecticut, Delaware, Nebraska, and Pennsylvania. A Wyoming resident working for a New York employer may still owe New York state income tax. See our dedicated guide.
Does New Hampshire really have no income tax?
New Hampshire has no tax on wages, salary, or self-employment income. It taxes interest and dividends above $2,400 at 3%, phasing to 0% by 2027. It has no state sales tax. However, property taxes average 1.86%, the 4th highest in the nation.
Which state has the lowest total tax burden?
Alaska, Wyoming, and South Dakota consistently rank lowest. Alaska has no state income or sales tax and pays residents the Permanent Fund Dividend ($1,000 to $2,000/year). Wyoming has low rates across all tax categories. South Dakota has low cost of living and favorable trust laws.
Can states add an income tax in the future?
Texas, Tennessee, and Florida have constitutional prohibitions on personal income tax voted on by residents. For the other six no-income-tax states, adding income tax would require legislation. It would be politically difficult but not constitutionally impossible.
What is the convenience of the employer rule?
A tax rule applied by New York, Connecticut, Delaware, Nebraska, and Pennsylvania that taxes remote workers based on their employer's location rather than where they live. A Florida resident working remotely for a New York company may owe New York income tax unless their remote work is a necessity of the employer.
Does Washington state have income tax?
Washington has no income tax on wages or salary. However, it enacted a 7% capital gains tax on investment gains above $250,000, upheld by the state Supreme Court in 2023. Washington also has a Business and Occupation (B&O) tax on gross receipts and high combined sales taxes averaging 9.2%.

Related tools and resources

incometaxbystate.com

Full income tax comparison for all 50 states

effectivetaxratecalculator.com

Calculate your true effective tax rate

aftertaxincomecalculator.com

Model your take-home pay after all taxes

podsmovingcost.com

Estimate the cost of your relocation

Sources: Tax Foundation State-Local Tax Burden Rankings 2024, BEA Regional Price Parity 2024, state revenue department websites. Last reviewed April 2026.