TaxWrenKey takeaways
- 9 states have no income tax on wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
- On a $100,000 salary, a single filer pays no state income tax in these states, against about $5,055 in California.
- Washington taxes long-term capital gains above $278,000 (7%, 9.9% above $1,000,000), and a 9.9% tax on income over $1,000,000 starts in 2028. Voters decide on Initiative 645, which would repeal it, on November 3, 2026.
- Several of these states lean on sales tax instead: Tennessee's average combined rate, 9.61%, is the 2nd highest in the country.
On this page
9 states do not tax wages in 2026. If you live and work in one of them, the only income taxes taken from your paycheck are federal income tax, Social Security and Medicare. Below is the list, what that is worth at different salaries, and the exceptions that catch people out, most of them in Washington.
Which states have no income tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Each link opens that state's income tax calculator.
| State | Tax on wages | Avg. sales tax | Worth knowing |
|---|---|---|---|
| Alaska | None | 1.82% | No statewide sales tax; local sales taxes apply |
| Florida | None | 6.98% | — |
| Nevada | None | 8.24% | — |
| New Hampshire | None | 0.00% | Interest and dividends tax repealed from 2025 |
| South Dakota | None | 6.11% | — |
| Tennessee | None | 9.61% | Sales tax ranks 2nd highest in the US |
| Texas | None | 8.20% | — |
| Washington | None | 9.57% | Capital gains tax; 9.9% tax on income over $1,000,000 from 2028; WA Cares long-term care tax (0.58% of wages) |
| Wyoming | None | 5.39% | — |
Sales tax: state rate plus the population-weighted average local rate, as of July 1, 2026 (Tax Foundation, State and Local Sales Tax Rates). The rate at a given address can differ.
How much does no state income tax save you?
It depends on the state you compare against and on your income. Here is the state income tax a single filer with wages only would pay in the five most populous states that do tax income. In the 9 states above, every cell would be $0.
| State | $60,000 salary | $100,000 salary | $200,000 salary |
|---|---|---|---|
| California | $1,640 | $5,055 | $14,355 |
| New York | $2,643 | $4,860 | $10,760 |
| Pennsylvania | $1,842 | $3,070 | $6,140 |
| Illinois | $2,825 | $4,805 | $9,755 |
| Ohio | $1,207 | $2,313 | $5,063 |
2026 state income tax only, single filer, standard deduction, no dependents, no local taxes (New York City and other local income taxes would add more). Calculated with our income tax calculator.
The gap grows with income because most of these states have progressive brackets. At $200,000, the California figure is $14,355.
Does Washington have an income tax?
Not on wages, but Washington is the state where "no income tax" needs the most footnotes.
Capital gains tax
Washington taxes long-term capital gains, such as profits on stocks held more than a year, once they pass a standard deduction of $278,000 (2025; it rises with inflation each year). The rate is 7% on the first $1,000,000 of taxable gains and 9.9% on the rest. Sales of real estate and gains inside retirement accounts are exempt. Most people never reach the deduction, but someone selling a business or a large stock position can.
A tax on income over $1,000,000, starting in 2028
In 2026 Washington enacted a 9.9% tax on Washington taxable income above a $1,000,000 standard deduction. Spouses and domestic partners share one deduction. It applies from January 1, 2028, with the first returns due in 2029. Wages under $1,000,000 are untouched.
Washington workers also pay the WA Cares long-term care tax: 0.58% of wages, withheld from each paycheck. Our Washington take-home pay calculator includes it.
Does New Hampshire tax interest and dividends?
Not since 2025. New Hampshire never taxed wages, but it used to charge 3% on interest and dividend income above a small exemption. That tax was repealed for tax years starting January 1, 2025, so New Hampshire no longer has a personal income tax of any kind. Returns for 2024 and earlier are still due if you owed the tax.
Are states with no income tax cheaper?
Not always. A state still needs revenue, and several of these states collect more through sales tax. Tennessee's average combined sales tax is 9.61%, the 2nd highest in the country, and Washington's is 9.57%. At the other end, New Hampshire has no general sales tax, and Alaska's average is 1.82%, all of it local.
Property taxes, fees and the cost of housing matter too, and they vary by county more than by state. A low-tax state can still cost more to live in. Compare the sales tax where you would shop with the sales tax calculator.
What to know before moving to a state with no income tax
- The move year is split. You are usually a part-year resident of both states. The state you leave can tax what you earned while you lived there, so the saving starts on your move date.
- Residency has to be real. States look at where your home, family, driver's license, voter registration and time actually are. Keeping a home in the old state invites questions.
- Income earned elsewhere can still be taxed. States generally tax nonresidents on income from work done or property held in the state, such as rental income.
- Federal tax does not change. Your federal brackets, standard deduction and FICA are the same everywhere.
Sources
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
- Washington Department of Revenue: Capital gains tax (official)
- Washington State Legislature: ESSB 6346, Establishing a tax on millionaires (Chapter 238, Laws of 2026) (official)
Figures come from the data files behind our calculators and update with them. See our methodology and editorial policy. This article is general information, not tax advice.
Frequently asked questions
Which states have no income tax in 2026?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. None of them taxes wages. Washington does tax large long-term capital gains, and a Washington tax on income over $1,000,000 is scheduled to start in 2028.
Does Texas have a state income tax?
No. Texas does not tax wages, salaries or other personal income. Its average combined state and local sales tax is 8.20%.
Does Washington state have an income tax?
Not on wages. Washington taxes long-term capital gains above $278,000 a year (the 2025 amount) at 7%, rising to 9.9% above $1,000,000 of taxable gains. A law signed on March 30, 2026 adds a 9.9% tax on income above $1,000,000 from January 1, 2028. Initiative 645, on the November 3, 2026 ballot, would repeal the tax and bar state and local taxes on individual income.
Does New Hampshire tax interest and dividends?
Not anymore. New Hampshire repealed its 3% interest and dividends tax for tax years starting in 2025. Returns for earlier years are still due.
Which states have no income tax and no sales tax?
New Hampshire has neither a tax on wages nor a general sales tax. Alaska has no statewide sales tax, but local governments can charge one.
Do I still pay federal income tax in a state with no income tax?
Yes. Federal income tax, Social Security and Medicare apply the same way in every state. Only the state income tax disappears.
Run your own numbers
- State income tax map
Interactive map and table of 2026 income tax for all 50 states and DC, with links to each state 1099 calculator.
- Income tax calculator
Federal and state income tax owed for 2026.
- Take-home pay calculator
Gross to net salary after federal, FICA, state and local taxes.