The 9 States With No Income Tax
Nine states take nothing out of your paycheck for state income tax. That's real money — but it's not the whole story. Here's what living in one actually means, and how to check your own numbers with the paycheck calculator.
The nine states
Nine states levy no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
New Hampshire is the newest to the list in practice — it taxed interest and dividend income for years, but that tax was fully repealed at the start of 2025, so wage earners and savers alike now pay no state income tax there. Washington is a partial exception worth noting: it has no tax on ordinary wages but does tax high capital gains.
What they charge instead
States still need revenue, so 'no income tax' rarely means 'low tax overall'. These states lean harder on other sources — usually higher sales tax, higher property tax, or both. Tennessee and Washington have some of the highest combined sales-tax rates in the country; Texas and New Hampshire are known for steep property taxes.
Others are genuinely low-tax because they have another engine: Alaska has oil revenue, and Nevada and Florida lean on tourism. The mix matters more than the headline.
What it means for your paycheck
For your take-home pay specifically, no state income tax is a clean win: nothing is withheld for the state, so more of each check is yours. On a $80,000 salary, a 5% state income tax is roughly $4,000 a year you keep instead.
To see the exact difference for your salary, run it through the paycheck calculator by state — comparing a no-tax state with your current one shows the real gap after federal tax and FICA, which apply everywhere.
When a no-tax state doesn't save you money
Income tax is only one line in your budget. A no-income-tax state with high property tax and sales tax can easily cost a homeowner more overall than a modest-income-tax state next door — especially if you own an expensive home or spend a lot on taxable goods.
Cost of living is the bigger lever. Higher rents, home prices, insurance or car costs can wipe out the income-tax savings many times over. Before moving for the tax break, add up the whole picture: income tax, property tax, sales tax, and everyday costs together.