States With No Income Tax: What You Actually Pay

The 9 No-Income-Tax States

• Alaska — No income tax, no state sales tax. Revenue comes from oil taxes and permanent fund dividends paid to residents.
• Florida — No income tax. 6% state sales tax (local surtax adds up to 2% more). Property taxes vary by county.
• Nevada — No income tax. 6.85% base sales tax. Revenue driven by gaming and tourism.
• New Hampshire — No tax on wages, but taxes interest and dividend income at 4% (phasing out by 2025).
• South Dakota — No income tax. 4.5% sales tax.
• Tennessee — No income tax on wages (eliminated 2021). Hall Tax on investment income also eliminated.
• Texas — No income tax. 6.25% state sales tax + local taxes up to 2%. Property taxes among the highest in the US.
• Washington — No income tax, but a 7% capital gains tax applies to gains over $250,000 (enacted 2023).
• Wyoming — No income tax. 4% sales tax. Low overall tax burden.

What You Still Pay

Living in a no-income-tax state doesn't eliminate your tax burden — it shifts it:

• Federal income tax — applies regardless of state. The same brackets, same rules.
• FICA — Social Security (6.2%) and Medicare (1.45%) apply in all states.
• Sales tax — many no-income-tax states have higher-than-average sales taxes
• Property tax — Texas and New Hampshire have some of the highest property tax rates in the US
• Excise taxes — gas, tobacco, alcohol taxes vary widely

Is Moving to a No-Tax State Worth It?

For high-income earners, relocating from California (13.3% top rate) or New York (10.9%) to Texas or Florida can save tens of thousands per year. For median earners, the savings are real but smaller — and may be partially offset by higher property taxes or sales taxes.

Use our state-specific calculators to compare your take-home pay in different states. Start with California, Texas, or Florida.