States With No Income Tax in 2026: What You Really Save
Nine states don't tax wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Moving to one can save thousands a year, but the savings depend on your income and on costs that these states often raise elsewhere.
How much you save
In states that do tax income, the average state income tax on a single filer's salary is about $2,123 at $60,000, $4,177 at $100,000 and $9,504 at $200,000 in 2026 (our calculation across all states with an income tax). The higher your income, the more a no-tax state is worth, especially if you are leaving a state with steep top brackets.
The trade-offs
States still need revenue, so they collect it in other ways. The table shows what you'd face in each no-income-tax state.
| State | State sales tax | Median property tax | Median rent | Price level |
|---|---|---|---|---|
| Alaska | 0% | $3,976 | $1,444 | 102.4 |
| Florida | 6% | $2,993 | $1,812 | 103.4 |
| Nevada | 6.85% | $2,143 | $1,709 | 100.0 |
| New Hampshire | 0% | $6,707 | $1,558 | 104.2 |
| South Dakota | 4.2% | $2,940 | $999 | 88.6 |
| Tennessee | 7% | $1,488 | $1,284 | 91.9 |
| Texas | 6.25% | $4,108 | $1,475 | 97.1 |
| Washington | 6.5% | $4,729 | $1,824 | 107.0 |
| Wyoming | 4% | $1,947 | $998 | 92.7 |
Sources: Census ACS 2024 (property tax, rent), BEA Regional Price Parities 2024 (price level, U.S. = 100). Local sales taxes are added on top of the state rate in most places.
State-by-state notes
- Texas relies heavily on property tax, so homeowners can pay more than in many income-tax states.
- Florida has a homestead exemption for primary residences, but homeowners insurance has become expensive in many coastal areas.
- Washington has no wage income tax for the 2026 calculation here, but has a separate capital gains tax. Its price level, especially housing rents in the Seattle area, is well above average. The enacted 9.9% income tax beginning in 2028 is outside this 2026 model; this page does not project its future outcome.
- Tennessee and Nevada lean on sales taxes, which fall hardest on people who spend most of what they earn.
- New Hampshire has no general sales tax and no wage income tax, but relatively high property taxes. The Interest and Dividends Tax was repealed for periods beginning January 1, 2025; older-year filing obligations remain.
- Alaska has no state sales tax (some local ones exist) and pays residents an annual Permanent Fund Dividend, but goods and energy can be costly.
- South Dakota and Wyoming combine no income tax with modest price levels.
Who benefits most
- High earners leaving high-tax states.
- Workers who keep their salary and whose income is not still taxable by another work state. Remote work does not automatically remove another state's tax claim.
- Retirees with large pension or IRA withdrawals (though many income-tax states already exempt Social Security; see retirement taxes by state).
Renters on moderate incomes may save less than they expect if rent is higher. The only way to know is to compare the full picture. Compare your two states.
If home and employer states differ, start with the live-and-work-in-two-states calculator and its work-location limits. For a move during the year, use the part-year residency checklist. A full-year wage example does not establish where every income type is taxable.