Nine states do not tax wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Living in one can add a few thousand dollars a year to your paycheck, but these states raise money in other ways, mostly through sales and property taxes. Here is how each one compares.
Map: the nine states without a wage tax
States in red do not tax wages. Select any state to see its guide or its paycheck calculator.
Top state income tax rates for 2026. Source: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026.
How much more you take home
Take-home pay for a single filer earning $75,000 in 2026 with no pre-tax deductions, from our Paycheck Calculator. Federal income tax, Social Security and Medicare are the same in every state; only state taxes differ.
| State | State income tax | Take-home pay | Compared with Texas |
|---|---|---|---|
| Texas | $0 | $61,593 | — |
| Florida | $0 | $61,593 | — |
| Washington | $0 | $61,593 | — |
| Tennessee | $0 | $61,593 | — |
| Nevada | $0 | $61,593 | — |
| North Carolina | $2,484 | $59,109 | $2,484 less |
| Georgia | $3,270 | $58,323 | $3,270 less |
| New York | $3,453 | $58,140 | $3,453 less |
| Illinois | $3,568 | $58,025 | $3,568 less |
| California * | $3,763 | $57,830 | $3,763 less |
| Oregon | $5,062 | $56,531 | $5,062 less |
* California includes 1.3% State Disability Insurance (SDI). Local income taxes are not included.
Sales and property taxes in the nine states
Without an income tax, these states depend more on what you buy and what you own. Select a column heading to sort, or compare all 50 states in our guide to sales tax by state.
| Alaska | None | 1.82% | 46 | 0.94% |
|---|---|---|---|---|
| Florida | 6% | 6.98% | 28 | 0.78% |
| Nevada | 6.85% | 8.24% | 13 | 0.5% |
| New Hampshire | None | None | Tied for 47th (no sales tax) | 1.5% |
| South Dakota | 4.2% | 6.11% | 36 | 1% |
| Tennessee | 7% | 9.61% | 2 | 0.52% |
| Texas | 6.25% | 8.2% | 14 | 1.4% |
| Washington | 6.5% | 9.57% | 3 | 0.75% |
| Wyoming | 4% | 5.39% | 44 | 0.53% |
Sales tax rates as of July 1, 2026; the U.S. average combined rate is 7.53%. Property tax rate is property taxes paid as a share of owner-occupied home value. Sources: Tax Foundation, State and Local Sales Tax Rates, Midyear 2026; Tax Foundation state tax pages.
Where their tax revenue comes from
Share of state and local tax revenue by source, fiscal year 2023, ordered by reliance on property taxes.
- New Hampshire
- Texas
- Wyoming
- Florida
- South Dakota
- Alaska
- Washington
- Nevada
- Tennessee
Source: Tax Foundation state tax pages, based on U.S. Census Bureau state and local government finance data for fiscal year 2023.
State by state
Alaska
Alaska has no statewide sales tax, though some cities and boroughs levy one, for an average local rate of 1.82%. General sales taxes bring in just 6.4% of state and local tax revenue, far less than in any other state on this list except New Hampshire, which has no sales tax. More than half comes from “other” taxes, a category that includes excise and severance taxes.
Florida
Florida pairs a 6% state sales tax with modest local add-ons, for a 6.98% average combined rate. Its effective property tax rate of 0.78% sits in the middle of the nine. Sales taxes are its largest source of state and local tax revenue, at 39%.
Nevada
Nevada has the lowest effective property tax rate of the nine, at 0.50% of home value. It leans on sales taxes instead: 45.3% of state and local tax revenue, with an average combined rate of 8.24%.
New Hampshire
New Hampshire is the only state on this list with no sales tax at all. It makes up for it with property taxes, which supply 59.5% of state and local tax revenue, and the highest effective property tax rate of the nine, at 1.50%. Its former tax on interest and dividends has been repealed.
South Dakota
South Dakota’s 4.2% state sales tax plus local taxes average 6.11%. Sales taxes provide 44.8% of state and local tax revenue, and its effective property tax rate is 1.00%.
Tennessee
Tennessee has the second-highest average combined sales tax rate in the country, 9.61%, and sales taxes supply 46.7% of state and local tax revenue, the most of the nine. In exchange, its effective property tax rate is low, at 0.52%.
Texas
Among these nine, only New Hampshire relies more on property taxes than Texas, where they provide 40.7% of state and local tax revenue, and its 1.40% effective property tax rate is the second highest of the nine. The combined sales tax averages 8.20%, with an 8.25% cap.
Washington
Washington does not tax wages, but it taxes long-term capital gains: 7% on gains above $278,000 in 2026, rising to 9.9% on gains above $1 million. Lawmakers also passed a 9.9% tax on income above $1 million that is scheduled to start in 2028; it faces a court challenge. Its 9.57% average combined sales tax is the third highest in the U.S.
Wyoming
Of the seven states here with a statewide sales tax, Wyoming has the lowest average combined rate, 5.39%, and a 0.53% effective property tax rate. Property and “other” taxes each supply about 35% of state and local tax revenue.
Is a state with no income tax always cheaper?
Not always. The saving on your paycheck is real, but what you pay overall depends on how much you spend and whether you own a home. A homeowner in Texas or New Hampshire can pay more in property tax than a renter saves in income tax, and heavy spenders in Tennessee or Washington pay some of the highest sales taxes in the country. Renters with high incomes usually gain the most.
To compare your own situation, enter your salary for different states in the Paycheck Calculator, and see every state’s rates in our state income tax guide.
Frequently asked questions
Which states have no state income tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wages in 2026.
Does Washington have an income tax?
Not on wages. Washington taxes long-term capital gains above $278,000 (7%, or 9.9% above $1 million), and a 9.9% tax on income above $1 million is scheduled to begin in 2028 if it survives a court challenge.
Which state with no income tax has the lowest taxes overall?
It depends on your situation. New Hampshire has no sales tax but the highest property tax rate of the nine; Nevada and Wyoming have low property tax rates; Alaska has no statewide sales tax.
Do I still pay federal income tax in these states?
Yes. Federal income tax, Social Security and Medicare apply in every state.
Last updated: November 5, 2026.
Sources
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
- Tax Foundation: State and Local Sales Tax Rates, Midyear 2026
- Tax Foundation state tax pages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
- CohnReznick: Washington enacts millionaires’ tax effective January 1, 2028
- Grant Thornton: Washington millionaire income tax and legal challenge