The 8 States With No Income Tax in 2026
Eight states tax no wage income at all, but they make it up elsewhere.
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Marcus Ellery Senior editor, tax and payrollMarcus edits the tax and paycheck desks, and owns the federal figures every calculator on the site reads from.
Eight states levy no individual income tax in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Washington taxes capital gains but not wages. None of these states forgo revenue. They lean on sales tax, property tax or severance tax instead.
The short version
- Eight states levy no individual income tax at all in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming.
- Washington taxes only capital gains above a threshold, at 9%, so wage earners there pay no state tax on salary.
- States without an income tax raise the money elsewhere: New Hampshire has the second-highest effective property tax rate in the country at 2.11%, and Tennessee has a combined sales tax rate of 9.61%.
- A single filer earning $95,000 who moves from North Carolina to Texas saves $3,281.78 in income tax but pays $3,440 more property tax on a $400,000 home.
- Residency for state tax purposes is about domicile and days present, not where your mail goes, and departing states audit the change.
Key figures · 2026
- States with no income tax
- 8
- Tax Foundation, 2026
- Texas effective property tax
- 1.71%
- Tax Foundation
- Tennessee combined sales tax
- 9.61%
- Tax Foundation
- New Hampshire property tax
- 2.11%
- Tax Foundation
Contents
Which states have no income tax in 2026?
Eight states tax no individual income at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Washington is a partial ninth. It levies a capital gains tax but does not tax wage income.
New Hampshire joined the list most recently. It taxed interest and dividend income until that levy was fully repealed after 2024, leaving no income tax of any kind.
What do those states charge instead?
Every state has to raise revenue somewhere, and the states without an income tax lean harder on the other two levers.
| State | Combined sales tax | Effective property tax |
|---|---|---|
| Tennessee | 9.61% | 0.72% |
| Texas | 8.20% | 1.71% |
| Nevada | 8.24% | 0.52% |
| Florida | 6.98% | 0.71% |
| South Dakota | 6.11% | 1.18% |
| Wyoming | 5.56% | 0.62% |
| Alaska | 1.82% | 0.57% |
| New Hampshire | 0.00% | 2.11% |
Two patterns stand out. Tennessee and Texas run some of the highest sales tax rates in the country. New Hampshire charges no sales tax at all and instead has the second-highest effective property tax rate in the United States.
Does no income tax mean you pay less overall?
Not necessarily. It depends on what you earn, what you spend and what you own.
A renter with a high salary usually does come out ahead, because the income tax they avoid is large and the property tax they avoid paying directly is small. A homeowner with a modest income in New Hampshire or Texas may pay more in total than they would in a state with a low income tax and cheap property.
Does Alaska really have no sales tax?
No statewide sales tax, but boroughs and cities levy their own, which average 1.82% across the state. Alaska is the only state where the entire sales tax burden is local.
Frequently asked questions
Which states have no income tax in 2026?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Washington taxes capital gains but not wages.
Does Washington have an income tax?
Not on wages. Washington levies a tax on capital gains above a large standard deduction, but earned income is untaxed.
Did New Hampshire used to tax income?
It taxed interest and dividends, not wages. That tax was fully repealed after 2024, so no income tax remains.
Do I still file a federal return?
Yes. State income tax is separate from federal. Living in a no-income-tax state changes nothing about your federal obligation.
Which no-income-tax state has the highest property tax?
New Hampshire, at an effective rate of 2.11% of home value, the second highest in the country.
If I move mid-year, do I owe tax to both states?
Usually yes. You generally file a part-year return in each state, allocating income to the period you lived there.
Sources
Every figure on this page is attributed to a named source with the date it took effect. Our reviewers check them against the primary source before publication.
About our expert
Senior editor, tax and payroll
Experience
Marcus edits everything on this site that turns on a federal or state tax figure: brackets, standard deductions, withholding thresholds, FICA caps and the state rate tables behind the paycheck tools.
His working rule is that a number appears on a page only if it also exists in the data layer with a source and an effective date attached, so an article and the calculator beside it can never disagree.
Areas of expertise
- Federal tax
- State income tax
- Payroll withholding
- FICA
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