Quick Answer
Nine states have no personal income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. In these states your paycheck is reduced only by federal income tax and FICA. But they often make up the revenue with higher sales or property taxes — Texas, for example, has high property taxes — so 'no income tax' doesn't always mean lower total taxes.
"No state income tax" is one of the biggest draws for job seekers, retirees, and remote workers choosing where to live. Nine states offer it — but the fine print matters. Here's the full list, the nuances, and what it means for your take-home pay.
The 9 states with no income tax
Two you should know about
Washington has no tax on wages, but does levy a 7% capital gains tax on high earners (long-term gains above roughly $270,000/year). Ordinary paycheck income isn't taxed.
New Hampshire never taxed wages, and its old tax on interest and dividends was repealed effective 2025 — so it now has no personal income tax at all.
The catch: revenue comes from somewhere
No income tax doesn't mean no taxes. These states shift the burden elsewhere:
- Property taxes: Texas and New Hampshire have some of the highest in the nation.
- Sales taxes: Tennessee and Washington have high combined state + local sales tax rates.
- Other revenue: Alaska and Wyoming lean on oil, gas, and mineral revenue instead.
See it in your paycheck
Curious how much more you'd keep? Compare a no-income-tax state to a high-tax one in Texas vs. California taxes, or run your salary through the salary calculator (pick any state) and the take-home pay calculator.