States With No Income Tax: Full List and What It Means
Nine states do not tax wages on your paycheck. That can mean thousands more in take-home pay, but it is only part of the cost-of-living story.
The list
These states do not tax wage income:
Extra detail you should know
- New Hampshire and Tennessee do not tax wages. Both once taxed interest and dividend income, but those taxes have been repealed. Check current rules for your situation.
- Washington has no tax on wages but does tax some large long-term capital gains.
- Alaska has no state income tax or state sales tax, though local governments may add their own taxes.
How much can you save?
A single filer earning $75,000 in Texas takes home about $61,592 a year. The same salary in California takes home about $58,805, a difference of $2,788 a year in income tax alone. Use the salary after tax calculator to compare any two states.
Why a no-tax state is not always cheaper
- Property tax. Some no-income-tax states, such as Texas, have high property tax rates.
- Sales tax. States that skip income tax often rely more on sales tax.
- Housing costs. Rent and home prices vary hugely, and can outweigh tax savings.
- Insurance. Home and car insurance costs differ by state.
The bottom line
Compare the whole budget, not just the income tax line. A higher-tax state with lower housing costs can leave you better off.
Last reviewed: October 2026. Figures are for tax year 2026. This guide is general information, not tax, legal or financial advice.
About the author
Hari Nepal, founder and editor of Kbtrim Salary. Hi, I'm Hari Nepal, based in Nepal. I built Kbtrim Salary to make money numbers easier to understand, with free calculators that explain how they work instead of hiding the math. I use published IRS and state tax figures and update them every year. I'm not a tax professional, so the tools give estimates, not advice. If you find a mistake, please email me at harinepal2062@gmail.com. More about this site.