States With No Income Tax: The 9-State List for 2026 (and the Catch)

Nine states levy no broad-based tax on the wages you earn. In 2026 they are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But "no income tax" is a headline, not the whole story — what you keep depends on sales, property, and excise taxes too. Here is the full list, the fine print, and how to think about it.

The short version

• Nine states have no broad income tax on wages in 2026.
• No income tax does not mean low taxes — these states lean on sales, property, and excise taxes instead.
• Washington taxes very large capital gains; New Hampshire became fully income-tax-free in 2025.
• Your real savings depend on what you earn, own, and spend — not just the income-tax line.

Which states have no income tax?

These nine states do not tax wage and salary income:

That covers the great majority of workers. Two of the nine carry an asterisk worth understanding, which we get to below.

No income tax doesn't mean low taxes

Every state has to fund roads, schools, and public safety. A state that forgoes income-tax revenue makes it up somewhere else — usually through:

• Sales tax — often higher, and applied to more categories of goods.
• Property tax — Texas and New Hampshire, for example, are famously high-property-tax states.
• Excise and severance taxes — Alaska and Wyoming lean heavily on energy revenue; tourism states lean on hotel and gaming taxes.

The fine print: Washington and New Hampshire

Two states need a footnote:

• Washington has no tax on wages, but since 2022 it levies a 7% tax on very large long-term capital gains — only on gains above roughly $262,000 per year (2026). For ordinary wage earners and most investors, there is still no state income tax. Note that Washington's tax politics remain active, so this is a space to watch.
• New Hampshire never taxed wages, but it did tax interest and dividends until that tax was fully phased out on January 1, 2025. As of 2025, New Hampshire is completely income-tax-free — though its property taxes remain among the nation's highest.

Tennessee deserves a nod too: its old "Hall tax" on investment income was repealed in 2021, which is why it now sits cleanly on the no-income-tax list.

How states rank on economic freedom

Taxes are only one slice of economic freedom. Our economic-freedom score folds in the total tax burden plus regulatory load and business climate — which is why the ranking below doesn't simply list the nine no-income-tax states in order:

1. 1NHNew Hampshire
   10.0A+
2. 2TNTennessee
   9.8A+
3. 3SDSouth Dakota
   9.6A+
4. 4TXTexas
   9.4A+
5. 5IDIdaho
   9.2A+
6. 6FLFlorida
   9.0A+
7. 7NCNorth Carolina
   8.8A
8. 8GAGeorgia
   8.6A
9. 9NDNorth Dakota
   8.4A-
10. 10INIndiana
    8.2A-

See all 50 states ranked on Economic Freedom

See the full tax-burden & economic-freedom ranking

All 50 states ranked on total tax load, regulation, and business climate — with a color-coded map.

Should you move to a no-income-tax state?

It can be a great financial move — but run the real numbers first:

1. Model your total burden. Estimate income, sales, and property tax in both your current state and the target state, for your income and spending.
2. Factor in cost of living. A bigger paycheck means little if housing, insurance, and groceries eat the difference. Nevada and Washington can be pricey; Tennessee, Texas, and Wyoming are often cheaper.
3. Weigh services and amenities. Lower taxes can mean different funding levels for schools, infrastructure, and public services. Decide what trade-offs you're comfortable with.

For many remote workers and retirees the math is compelling. For others, a moderate-tax state with lower housing costs comes out ahead. The point is to compare the whole picture — which is exactly what the rankings above are built to help you do.