States With No Income Tax
2026Complete list of the 9 US states with no state income tax in 2026, including how they fund services and the trade-offs (higher property/sales tax) — verified for 2026.
Written and reviewed by Konstantin Iakovlev · Methodology · Updated
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
Listed alphabetically; all collect $0 income tax on wages
A state qualifies if it imposes no broad-based personal income tax on W-2 wages or self-employment earnings in 2026.
- 1
Alaska
Alaska — Funds state services from oil-and-gas extraction revenue (Permanent Fund Dividend pays residents ~$1,700/year). 0% sales tax statewide; some boroughs charge 1%-7%.
- 2
Florida
Florida — Constitutional prohibition on state income tax. Funds via 6% sales + tourism taxes + corporate income tax. Highest hurricane insurance burden in the country (~$4,200/yr avg).
- 3
Nevada
Nevada — Funds via gaming and 8.375% combined sales tax in Clark County (Las Vegas). Higher than-average COL outside rural areas due to Las Vegas growth.
- 4
New Hampshire
New Hampshire — No tax on wages/W-2 income. Did tax interest/dividends at 5% but phased out by 2027. Highest property tax burden in the country (~1.93% effective).
- 5
South Dakota
South Dakota — Funds via 4.2% state sales tax + reliance on tourism (Black Hills, Mount Rushmore). Banking-friendly trust laws bring substantial business revenue.
- 6
Tennessee
Tennessee — Eliminated the Hall Tax (interest/dividends) in 2021. Now fully no-income-tax. 7% state sales tax (highest in country) + 4% reduced grocery rate.
- 7
Texas
Texas — Constitutional prohibition. Funds primarily via 1.68% effective property tax (7th-highest) + 6.25% state sales tax. Prop 4 of 2023 raised homestead exemption to $100K.
- 8
Washington
Washington — Funds via 6.5% state sales tax + 7% capital gains tax over $250K (passed 2022). Recent enactments pushing toward ITAA (Income Tax Authorization Amendment) but blocked.
- 9
Wyoming
Wyoming — Lowest tax burden in the country per Tax Foundation. Funds via mineral severance tax (coal, oil, gas) + 4% sales tax (lowest among non-zero-sales states).
Methodology note: This listicle is curated based on Q1 2026 data verified against each state's Department of Revenue + Tax Foundation 50-state reports. Rankings reflect tax structure and are not investment advice. Cost of living, employment opportunities, climate, and personal preferences should also factor into relocation decisions.