States With No Income Tax: The Full 2026 List
Published March 28, 2026
Nine U.S. states levy no state income tax on wages. But no income tax does not automatically mean lower taxes — these states make up revenue through other taxes. Here is the full list plus a total tax burden comparison.
The 9 No-Income-Tax States
| State | Sales Tax | Property Tax | How Revenue Is Replaced |
|---|---|---|---|
| Alaska | None | Low | Oil revenue, federal land revenue |
| Florida | 6% | Moderate | Tourism taxes, sales tax |
| Nevada | 6.85% | Low-Moderate | Gaming taxes, sales tax |
| New Hampshire | None | Very High | Property tax (highest in U.S.) |
| South Dakota | 4.5% | Low | Sales tax, no corporate income tax |
| Tennessee | 7% | Low | Highest sales tax in U.S. |
| Texas | 6.25% | Very High | Property tax, sales tax, oil revenue |
| Washington | 6.5% | Moderate | Highest sales tax (with local), B&O tax |
| Wyoming | 4% | Low | Mineral/energy extraction revenue |
The Trade-Off: Income Tax vs. Other Taxes
Texas and New Hampshire illustrate the trade-off perfectly. Neither has a state income tax, but both have among the highest property taxes in the country. A homeowner in Houston may pay $8,000-$15,000 annually in property taxes — equivalent to a meaningful income tax. Renters benefit more from no-income-tax states because they avoid the property tax trade-off (though it is partially embedded in rent).
Who Benefits Most From No-Income-Tax States?
- High earners: The savings scale with income. Someone earning $500K saves $25K-$50K annually on state income tax in Florida vs. California.
- Renters: Renters capture most of the income tax savings without directly bearing higher property taxes.
- Retirees: Retirement income (Social Security, pensions, IRA withdrawals) is not taxed in no-income-tax states.
Compare your tax burden across states with our income tax calculator. For federal bracket details, see 2026 federal tax brackets. For freelancers, see self-employment tax guide.
Frequently Asked Questions
Which states have no income tax?
Nine states have no state income tax in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. New Hampshire taxes only interest and dividends, not wages (though this is being phased out).
Are no-income-tax states actually cheaper?
Not always. States without income tax typically make up the revenue through higher sales taxes, property taxes, or in Alaska's case, oil revenue. Texas and New Hampshire have among the highest property taxes in the nation. Washington has one of the highest sales tax rates. Total tax burden — not just income tax — determines the actual cost.
Which state has the lowest total tax burden?
The states with the lowest total tax burden (income + sales + property + excise) are typically Alaska, Wyoming, and Tennessee. However, the "cheapest" state depends on your income level, homeownership status, and spending patterns.
About This Data
State tax data compiled from state revenue department publications and Tax Foundation analysis. See our methodology.