Nine states do not tax wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. We confirmed each one with the state’s own revenue agency or official state government site, linked below.
Living in one of them does not make your paycheck tax-free. Federal income tax, Social Security and Medicare are exactly the same in every state. What changes is that there is no state income tax line, and the state raises its money in other ways: sales taxes, property taxes, business taxes and, in a few cases, taxes on investment income or payroll premiums for state programs.
This guide shows what each of the nine taxes instead, how much difference the missing state line makes to take-home pay, and what to watch for if you are moving or working remotely. For how every line of a paycheck works, see our guide to paycheck taxes in 2026.
Which states have no income tax in 2026
| State | Tax on wages in 2026 | What the state says | Paycheck calculator |
|---|---|---|---|
| Alaska | None | No individual income tax, so no state withholdingAlaska DOR | Alaska |
| Florida | None | No personal income taxFlorida DOR | Florida |
| Nevada | None | No state tax on salaries, wages or similar payNevada Dept. of Taxation | Nevada |
| New Hampshire | None | No income tax on W-2 wages; the interest and dividends tax is repealedNH DRA | New Hampshire |
| South Dakota | None | No corporate, unitary or personal income taxSouth Dakota DOR | South Dakota |
| Tennessee | None | No state income tax on earned income, so no withholdingTennessee DOR | Tennessee |
| Texas | None | No state income taxTexas Comptroller | Texas |
| Washington | None in 2026 | No individual income tax now; a tax on very high incomes starts in 2028Washington DOR | Washington |
| Wyoming | None | No individual or corporate income taxState of Wyoming | Wyoming |
Two of these states used to tax some investment income but never taxed wages. Tennessee’s Hall income tax applied only to interest and dividends and was repealed for tax periods beginning on or after January 1, 2021.Tennessee DOR New Hampshire’s Interest and Dividends Tax was repealed for taxable periods beginning after December 31, 2024.NH DRA
What changes on your paycheck, and what doesn’t
On a paycheck, a no-income-tax state removes one line: state income tax withholding. Everything federal stays.
Take a single filer earning $75,000 a year. In Texas, take-home pay comes to $61,593 a year. The same salary in Illinois, which has a flat income tax, takes home $58,025. The federal income tax, Social Security and Medicare lines are identical in both; the whole difference is the state.
No income tax does not always mean no state deductions at all. Washington has no income tax, but employees pay premiums for the state’s Paid Family and Medical Leave program and the WA Cares long-term care fund, which employers withhold from paychecks.Paid Leave Washington That is why $75,000 in Washington takes home $60,552, a little less than in Texas.
To see every state ranked on the same salary, use the state income tax comparison. For a single filer at $75,000, the highest take-home pay in the country is $61,593 and the lowest is $56,013.
What no-income-tax states tax instead
States without a wage tax still fund schools, roads and services. The mix differs a lot from state to state, so “no income tax” can mean very different things for your budget.
Alaska
Alaska has neither a state income tax nor a state sales tax. The Alaska Department of Revenue says some local jurisdictions impose their own sales taxes, so the rate you pay depends on where you shop.Alaska DOR The state’s tax list includes taxes on oil and gas production and property, corporate income tax, and excise taxes such as motor fuel, alcohol and tobacco.
Florida
Florida charges a state sales tax of 6%Florida Department of Revenue on most goods, plus a discretionary sales surtax set by each county. The Department of Revenue’s guide for new residents also notes that Florida does not impose an inheritance tax, gift tax or tax on intangible personal property. Businesses pay corporate income tax and reemployment tax, and homeowners pay local property taxes, with a homestead exemption available for a primary residence.
Nevada
Nevada’s Department of Taxation says that while the state has no individual income tax, it levies other taxes such as sales tax and property tax. The base state sales tax rate is 6.85%Nevada Department of Taxation, and local jurisdictions can add their own taxes on top, so the total rate varies from county to county.
New Hampshire
New Hampshire has no general sales tax on goods.NH DRA Instead, the state taxes specific activities. The best known is the Meals and Rooms (Rentals) Tax of 8.5%NH Department of Revenue Administration on restaurant meals, hotel rooms and car rentals. The Department of Revenue Administration also collects business taxes, including the Business Profits Tax and Business Enterprise Tax, and a real estate transfer tax. Property taxes are set locally.
South Dakota
South Dakota’s state sales and use tax rate is 4.2%South Dakota Department of Revenue, and municipalities can add their own sales tax. The Department of Revenue’s guide lists other taxes businesses may owe, such as the contractor’s excise tax, but no corporate or personal income tax.
Tennessee
Tennessee does not tax wages, and since the Hall income tax ended it no longer taxes interest or dividends either. The Department of Revenue’s withholding guidance says that because there is no state income tax on earned income, Tennessee has no withholding requirements for employers. For the state’s sales tax and other taxes, check the Tennessee Department of Revenue directly; we have not yet verified those rates for this guide.
Texas
Texas imposes a state sales and use tax of 6.25%Texas Comptroller on most goods and some services. Cities, counties, transit authorities and special districts can add up to 2%, for a maximum combined rate of 8.25%. Businesses above a “no tax due” revenue threshold pay the franchise tax,Texas Comptroller and property taxes are levied by local governments.
Washington
Washington has no individual income tax in 2026, but it is the one state on this list where that is set to change. A new income tax of 9.9%Washington Department of Revenue will apply from January 1, 2028 to individuals and married couples filing jointly with adjusted gross income over $1,000,000, under Senate Bill 6346. The first returns are due in 2029. Most workers will not be affected, because of the high threshold.
Today Washington relies on a state retail sales tax of 6.5%Washington Department of Revenue plus local sales taxes, a business and occupation tax on businesses’ gross receipts, and a separate tax on individuals’ long-term capital gains with a base rate of 7%Washington Department of Revenue. Wages are not subject to the capital gains tax. As noted above, workers also pay premiums for paid leave and WA Cares.
Wyoming
Wyoming’s sales and use tax has two parts: a mandatory statewide rate of 4%Wyoming Department of Revenue and any additional local rates approved by voters. The State of Wyoming’s own overview names mineral extraction and travel and tourism as the main drivers of its economy. Property taxes are levied locally, with the Department of Revenue’s Property Tax Division overseeing how property is assessed.
Is a no-income-tax state cheaper overall?
Not automatically. A missing income tax is easy to see on a paycheck, but the taxes that replace it depend on how you live:
- Sales taxes depend on how much you spend on taxable goods and services, and on the local rate where you shop.
- Property taxes depend on the value of the home you own (or, indirectly, the rent you pay) and the local rate.
- Specific taxes and fees, such as New Hampshire’s meals and rooms tax or Washington’s payroll premiums, depend on what you use.
Housing costs, insurance and wages for the same job also vary between states, and they often matter more than the tax difference. A fair comparison looks at your take-home pay and your likely spending together. Start with your take-home pay in each state using the paycheck calculator or the state comparison, then add up the costs that apply to you.
Moving to a no-income-tax state or working remotely
If you are moving, a few practical points:
- Residency is not automatic. Your old state may still treat you as a resident until you have clearly moved your permanent home. Florida’s guide for new residents, for example, says filing a declaration of domicile, qualifying for the homestead exemption or registering to vote can establish residency, while getting a Florida driver’s license only indicates an intent to. You will usually file a part-year resident return in your old state for the year you move.
- Where you work matters as well as where you live. If you live in a no-income-tax state but work in a state that taxes wages, the work state can generally tax the wages you earn there. Remote work for an employer in another state raises the same question, and the answer depends on the states involved.
- Tell payroll. Update your home address and work location with your employer so it stops withholding for your old state. Check your first pay stub after the move.
- Federal stays the same. Moving does not change your federal W-4 or federal withholding unless your filing status or other circumstances change.
Frequently asked questions
Does Texas have a state income tax in 2026?
No. The Texas Comptroller says Texas has no state income tax. Texans still pay federal income tax, Social Security and Medicare on their wages, and the state collects sales and use tax and local governments collect property taxes.
Is Washington adding an income tax?
Yes, but not until 2028, and only on high incomes. The Washington Department of Revenue says a new tax will apply from January 1, 2028 to individuals and joint filers with adjusted gross income above the threshold shown earlier in this guide. Washington does not have an individual income tax in 2026.
Does New Hampshire tax interest and dividends?
Not anymore. The Interest and Dividends Tax was repealed for taxable periods beginning after December 31, 2024. Returns are still required for earlier years when the tax applied.
Do I still pay federal taxes in a state with no income tax?
Yes. Federal income tax withholding, Social Security and Medicare apply the same way in every state. Use the federal income tax calculator to estimate your 2026 federal tax.
Which state is best for take-home pay?
On wages alone, one of the no-income-tax states, but which one depends on state payroll taxes and your salary. The state income tax comparison ranks all 50 states and DC for your salary and filing status.