State tax 7 min read·

9 States With No Income Tax in 2026 — What You Actually Save

The list of no-income-tax states, the trade-offs (sales tax, property tax), and how much a $75K, $150K, and $300K earner really saves.

Priya Nathan, CPP
Certified Payroll Professional · Data & research

The full 2026 list

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming charge no state income tax on wages in 2026. New Hampshire fully phased out its Interest & Dividends Tax on January 1, 2026 — meaning residents now owe zero personal income tax of any kind.

What you actually save

For a single filer earning $75,000 in California (roughly 4.5% effective state rate) vs Texas: you'd keep about $3,400 more per year in Texas. At $150,000 the gap widens to ~$8,000. At $300,000, ~$20,000.

Numbers are illustrative — our state-by-state calculator produces the exact figure for your salary and filing status.

The trade-offs

Every no-income-tax state raises revenue somewhere. Texas and New Hampshire have some of the highest property tax rates in the country. Washington and Tennessee have very high sales tax (Tennessee is over 9% combined in most cities). Nevada leans hard on tourism-related excise taxes.

For most households, income tax is the biggest line — so moving from a 5–7% income tax state to a 0% state usually nets a real savings even after other taxes rise.

How to compare cleanly

The right comparison is total effective tax rate: income + sales + property + excise divided by gross income. Open the same salary in two state calculators and check the take-home; then factor in known property tax on the home price you'd buy.

About the author

Priya Nathan, CPPCertified Payroll Professional · Data & research. All USA Paycheck Calculator articles are reviewed by an IRS Enrolled Agent or Certified Payroll Professional before publication and re-verified each tax year.

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