Question 1

Which states have no income tax?

Accepted Answer

Nine US states have no income tax on earned income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire is a special case as it does not tax wages or salary but does tax interest and dividends above $2,400 at 3%.

Question 2

Does no income tax mean no taxes at all?

Accepted Answer

No. States without income tax still collect revenue through other taxes including property taxes, sales taxes, excise taxes, and fees. Some no-income-tax states have above-average rates in these other categories. For example, Texas has the 6th highest property tax rate and Tennessee has the highest combined sales tax rate in the nation.

Question 3

Which no-income-tax state has the lowest overall taxes?

Accepted Answer

Wyoming consistently ranks as having the lowest total tax burden among the no-income-tax states. It has no income tax, a combined sales tax averaging 5.36%, and property taxes averaging 0.56%. Alaska also ranks very low due to having no state income or sales tax, though its cost of living is significantly higher.

Question 4

What is the most tax-friendly state?

Accepted Answer

The most tax-friendly state depends on your specific financial situation. For high-wage earners, Wyoming, South Dakota, and Florida tend to offer the lowest total tax burden. For retirees, Alaska, Wyoming, and South Dakota are often most favorable. Use a total tax burden calculator with your specific income, home value, and spending to find the best state for your situation.

Question 5

Is it worth moving to a no-income-tax state?

Accepted Answer

It depends on your income level and financial profile. High earners ($200,000+) can save $10,000 to $30,000+ per year by relocating to a no-income-tax state. Average earners ($50,000 to $80,000) may save $2,000 to $4,000 in income tax but could lose those savings to higher property or sales taxes. You also need to factor in cost of living differences, which can outweigh tax savings entirely.

Question 6

Do I have to pay income tax if I work remotely from a no-income-tax state?

Accepted Answer

Generally, if you are a resident of a no-income-tax state and work remotely, you do not owe state income tax on your earnings. However, some states have 'convenience of the employer' rules that may tax remote workers based on their employer's location. New York is the most notable example. Always verify the rules for both your state of residence and your employer's state.

Question 7

Does New Hampshire really have no income tax?

Accepted Answer

New Hampshire has no tax on wages, salary, or earned income. However, it does tax interest and dividends above $2,400 per year at 3%. This means W-2 employees and self-employed individuals pay no state income tax, but those with significant investment income will owe tax on that portion. New Hampshire also has no state sales tax.

Question 8

Which state has the lowest total tax burden?

Accepted Answer

According to multiple analyses, Alaska, Wyoming, and South Dakota consistently have the lowest total state and local tax burdens as a percentage of income. Alaska benefits from no state income tax and no state sales tax, plus residents receive the Permanent Fund Dividend. Wyoming has no income tax and relatively low property and sales taxes.

Question 9

Can states add an income tax in the future?

Accepted Answer

Yes, most states could theoretically add an income tax through the legislative process. However, some states have constitutional prohibitions. Texas prohibits a state income tax in its constitution (approved by voters in 1993). Tennessee also added a constitutional amendment banning income tax. Florida's constitution prohibits a personal income tax. For other no-income-tax states, adding one would be politically difficult but not constitutionally impossible.

Question 10

How do no-income-tax states fund schools and roads?

Accepted Answer

No-income-tax states rely on alternative revenue sources: property taxes (Texas relies heavily on these), sales taxes (Tennessee has the highest combined rate), natural resource taxes (Alaska funds much of its budget through oil revenue, Wyoming through mineral extraction), tourism and gaming taxes (Nevada and Florida), and federal transfers. Some states also have lower per-capita spending on services.

#	State↕	Income Tax↕	Property Tax↕	Sales Tax↕	Total Tax▲	vs California
1	WyomingNo Income Tax	$0	$2,240	$1,876	$4,116	-$9,137
2	AlaskaNo Income Tax	$0	$4,160	$637	$4,797	-$8,456
3	NevadaNo Income Tax	$0	$2,120	$2,881	$5,001	-$8,252
4	FloridaNo Income Tax	$0	$3,440	$2,457	$5,897	-$7,356
5	TennesseeNo Income Tax	$0	$2,560	$3,343	$5,903	-$7,350
6	Delaware	$3,630	$2,280	$0	$5,910	-$7,343
7	Montana	$3,245	$2,960	$0	$6,205	-$7,048
8	South DakotaNo Income Tax	$0	$4,320	$2,135	$6,455	-$6,798
9	Arizona	$1,375	$2,480	$2,930	$6,785	-$6,468
10	WashingtonNo Income Tax	$0	$3,760	$3,220	$6,980	-$6,273
11	North Dakota	$1,073	$3,760	$2,436	$7,269	-$5,984
12	West Virginia	$2,816	$2,280	$2,237	$7,333	-$5,920
13	Utah	$2,503	$2,320	$2,516	$7,339	-$5,914
14	Colorado	$2,420	$2,200	$2,727	$7,347	-$5,906
15	New HampshireNo Income Tax	$0	$7,440	$0	$7,440	-$5,813

State	Property Tax Rate	On $400K Home	vs National Avg
New HampshireNo Income Tax	1.86%	$7,440	+$3,480
TexasNo Income Tax	1.60%	$6,400	+$2,440
South DakotaNo Income Tax	1.08%	$4,320	+$360
AlaskaNo Income Tax	1.04%	$4,160	+$200
WashingtonNo Income Tax	0.94%	$3,760	-$200
FloridaNo Income Tax	0.86%	$3,440	-$520
TennesseeNo Income Tax	0.64%	$2,560	-$1,400
WyomingNo Income Tax	0.56%	$2,240	-$1,720
NevadaNo Income Tax	0.53%	$2,120	-$1,840
National Average	0.99%	$3,960	baseline

State↕	Income Tax Rate▲	Property Tax Rate↕	Sales Tax (Combined)↕	Cost of Living↕	Notes
AlaskaNo Income Tax	0%	1.04%	1.82%	127.5	No state income or sales tax. Municipalities may levy local sales tax.
FloridaNo Income Tax	0%	0.86%	7.02%	103.1	No income tax. Sales tax 6% + local. Moderate property tax.
NevadaNo Income Tax	0%	0.53%	8.23%	104.2	No income tax. Sales tax 6.85% + local. Low property tax.
New HampshireNo Income Tax	0%	1.86%	0.00%	112.5	No tax on earned income or sales tax. High property tax. Taxes interest and dividends.
South DakotaNo Income Tax	0%	1.08%	6.10%	92.1	No income tax. Moderate sales and property taxes. Low cost of living.
TennesseeNo Income Tax	0%	0.64%	9.55%	92.4	No income tax. Highest combined sales tax rate in the nation at 9.55%.
TexasNo Income Tax	0%	1.60%	8.19%	93.9	No income tax. High property tax (6th highest nationally). Sales tax 6.25% + local.
WashingtonNo Income Tax	0%	0.94%	9.20%	110.7	No income tax. High sales tax (9.2% combined avg). Capital gains tax on large gains.
WyomingNo Income Tax	0%	0.56%	5.36%	96.0	No income tax. Low property and sales taxes. One of the lowest total tax burdens.
North Dakota	0% to 1.95%	0.94%	6.96%	93.0	Very low income tax, moderate property tax
Arizona	Flat 2.5%	0.62%	8.37%	102.2	Flat income tax, moderate property tax
Indiana	Flat 3.05%	0.83%	7.00%	90.5	Low flat income tax, high sales tax
Pennsylvania	Flat 3.07%	1.49%	6.34%	96.4	Low flat income tax but high property tax
Ohio	0% to 3.5%	1.53%	7.24%	89.5	Above-average property tax, low cost of living
Iowa	Flat 3.8%	1.52%	6.94%	89.0	High property tax, low cost of living
Arkansas	2% to 3.9%	0.62%	9.47%	89.1	Moderate income tax, high combined sales tax
Kentucky	Flat 4%	0.83%	6.00%	92.0	Flat income tax, low cost of living
Louisiana	1.85% to 4.25%	0.55%	9.55%	91.1	High combined sales tax, low property tax
Michigan	Flat 4.25%	1.38%	6.00%	90.0	Above-average property tax, moderate income tax
Colorado	Flat 4.4%	0.55%	7.79%	105.0	Flat income tax, low state sales tax but high local add-ons
North Carolina	Flat 4.5%	0.80%	6.97%	96.0	Flat income tax, moderate overall burden
Utah	Flat 4.55%	0.58%	7.19%	101.5	Flat income tax, moderate overall burden
Mississippi	4.7% (phasing down)	0.67%	7.07%	84.8	Lowest cost of living, high sales tax
Oklahoma	0.25% to 4.75%	0.87%	8.97%	87.5	High combined sales tax, low cost of living
Missouri	2% to 4.8%	0.93%	8.29%	89.8	High combined sales tax with local add-ons
Illinois	Flat 4.95%	2.07%	8.82%	93.4	Second-highest property tax in the nation
Alabama	2% to 5%	0.39%	9.24%	88.8	Low property tax, high combined sales tax
Nebraska	2.46% to 5.01%	1.63%	6.94%	91.8	High property tax, moderate income tax
West Virginia	2.36% to 5.12%	0.57%	6.39%	86.3	Moderate taxes, very low cost of living
Georgia	1% to 5.39%	0.87%	7.38%	93.4	Moderate income tax, moderate property tax
Kansas	3.1% to 5.7%	1.34%	8.69%	88.5	Above-average property tax and sales tax
Maryland	2% to 5.75%	1.05%	6.00%	115.8	Income tax plus county income tax piggyback
Virginia	2% to 5.75%	0.82%	5.75%	103.7	Moderate across all tax categories
Idaho	Flat 5.8%	0.63%	6.03%	98.1	Flat income tax, moderate overall burden
Montana	1% to 5.9%	0.74%	0.00%	104.2	No sales tax but has income tax
New Mexico	1.7% to 5.9%	0.67%	7.60%	94.5	Moderate taxes across the board
Rhode Island	3.75% to 5.99%	1.40%	7.00%	108.5	High across income, property, and sales taxes
South Carolina	0% to 6.4%	0.56%	7.44%	95.2	Moderate income tax, low property tax
Delaware	2.2% to 6.6%	0.57%	0.00%	102.4	No sales tax but has income tax
Connecticut	3% to 6.99%	1.96%	6.35%	112.8	High income tax and property tax
Maine	5.8% to 7.15%	1.24%	5.50%	113.8	High income tax, above-average property tax
Wisconsin	3.5% to 7.65%	1.61%	5.43%	95.0	High income and property taxes
Vermont	3.35% to 8.75%	1.73%	6.24%	114.5	High income tax and property tax
Massachusetts	Flat 5% + 4% surtax over $1M	1.15%	6.25%	135.0	Millionaire surtax, high cost of living
Minnesota	5.35% to 9.85%	1.08%	7.47%	97.5	Very high income tax, above-average property tax
Oregon	4.75% to 9.9%	0.87%	0.00%	113.0	Very high income tax, no sales tax
New Jersey	1.4% to 10.75%	2.23%	6.63%	120.5	Highest property tax in the nation, high income tax
New York	4% to 10.9%	1.62%	8.53%	139.1	Very high income and property tax, plus NYC local income tax
Hawaii	1.4% to 11%	0.27%	4.44%	192.9	Very high income tax, lowest property tax, very high cost of living
California	1% to 13.3%	0.71%	8.85%	142.2	Highest state income tax rate in the nation

The 9 States With No Income Tax (2026)

Alaska

Florida

Nevada

New Hampshire*

South Dakota

Tennessee

Texas

Washington

Wyoming

Total Tax Burden Calculator

The Hidden Tax Trade-offs

Property Tax Reality

Sales Tax Reality

Other Revenue Sources

Who Actually Benefits from No-Income-Tax States?

High Earners ($200K+)

Retirees

Remote Workers

Average Earners ($50-80K)

Business Owners

Low-Income Households

State-by-State Deep Dive

All 50 States: Income Tax Rates

Frequently Asked Questions