States with no income tax, and what they charge instead
Nine states do not tax wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. A single worker earning $75,000 keeps about $4,027 a year more in Texas than in California, and $1,861 more than in Ohio.
The states make up the money in other ways. Texas and New Hampshire have property tax rates well above the national average, Tennessee and Washington have average combined sales tax rates above 9%, and Washington charges payroll premiums and a capital gains tax. No income tax does not always mean low total taxes.
The nine states and what they still tax
None of these states taxes wages, so residents who work there file only a federal return in most cases. Two had a tax on investment income until recently: Tennessee's Hall tax on interest and dividends was repealed for tax years starting in 2021, and New Hampshire's ended after 2024. Washington is the outlier, with a tax on large capital gains. Every one of them except Alaska and New Hampshire has a statewide sales tax.
| State | Income taxes | State sales tax | Calculators |
|---|---|---|---|
| Alaska | No individual income tax and no statewide sales tax, but many cities and boroughs levy their own sales tax. | None | Income tax, paycheck |
| Florida | No personal income tax; the state constitution prohibits one. | 6% | Income tax, paycheck |
| Nevada | No personal income tax; the state constitution prohibits one. | 6.85% | Income tax, paycheck |
| New Hampshire | No tax on wages, and the interest and dividends tax was repealed for tax years beginning after 2024. No general sales tax. | None | Income tax, paycheck |
| South Dakota | No personal income tax. | 4.2% | Income tax, paycheck |
| Tennessee | No tax on wages, and the Hall tax on interest and dividends was repealed for tax years starting in 2021. | 7% | Income tax, paycheck |
| Texas | No personal income tax; a 2019 constitutional amendment prohibits one. | 6.25% | Income tax, paycheck |
| Washington | No tax on wages, but a 7% tax on long-term capital gains above a large yearly deduction (9.9% above $1 million of taxable gains), plus payroll premiums for paid leave and WA Cares. A 9.9% tax on income above $1 million is scheduled for 2028, subject to a pending court challenge. | 6.5% | Income tax, paycheck |
| Wyoming | No personal income tax. | 4% | Income tax, paycheck |
State sales tax rates are the statewide rate as of midyear 2026, from the Tax Foundation. Local sales taxes add to them in most states.
How much a worker keeps
The paycheck engine behind our paycheck calculator gives the same federal withholding and payroll tax everywhere, so the gap between states is state income tax plus any state payroll programs. In Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming, a paycheck has no state deductions at all. Alaska takes a small unemployment insurance contribution, 0.5% of the first $54,200 of wages ($271 at $75,000).
| State | $50,000 | $75,000 | $100,000 | $150,000 |
|---|---|---|---|---|
| Texas and 6 others | $42,355 | $61,592 | $79,180 | $113,791 |
| Alaska | $42,105 | $61,322 | $78,909 | $113,520 |
| Washington | $41,662 | $60,552 | $77,793 | $111,710 |
| California | $40,562 | $57,565 | $72,320 | $101,165 |
| New York | $39,973 | $57,752 | $73,842 | $104,810 |
| Illinois | $40,025 | $58,025 | $74,375 | $106,511 |
| Pennsylvania | $40,785 | $59,237 | $76,040 | $109,081 |
| North Carolina | $40,821 | $59,044 | $75,618 | $108,175 |
| Georgia | $40,609 | $58,599 | $74,939 | $107,054 |
| Ohio | $41,242 | $59,731 | $76,571 | $109,485 |
Yearly take-home pay for a single filer, paid every two weeks, 2026 federal and state withholding with a standard W-4 and no local income tax (New York City, Pennsylvania local and Ohio city taxes would lower those states further). State figures include required payroll premiums such as California SDI and Washington's paid leave and WA Cares. Withholding can differ a little from the tax on the state return.
The savings grow with pay. At $150,000, Texas take-home pay is about $12,626 higher than California's, $8,981 higher than New York's and $4,710 higher than Pennsylvania's, where the flat 3.07% rate keeps the gap smaller.
Start with a $75,000 salary in Texas, then switch the state or open the Compare tab to line up offers in different states.
Open the calculatorWashington's payroll premiums
Washington has no income tax, but two state programs come out of every paycheck. At $75,000 they total about $1,040 a year, which is why Washington take-home pay ($60,552) trails Texas's ($61,592).
- WA Paid Family & Medical Leave: $605 a year at $75,000.
- WA Cares Fund: $435 a year at $75,000.
The paid leave premium is 1.13% of wages in 2026, with employees paying 71.43% of it, up to the Social Security wage limit. WA Cares, the long-term care program, takes 0.58% of all wages with no cap, unless a worker has an approved exemption.
Property tax and homeowners insurance
Property tax is where several of these states charge more. Four of the nine states (Alaska, New Hampshire, South Dakota and Texas) have average effective rates above the national 0.89%. The last column holds the home value fixed at the U.S. median of $360,600 so the rates compare directly.
| State | Property tax rate | Median home | Tax on median home | Insurance on median home | Tax on a $360,600 home |
|---|---|---|---|---|---|
| Alaska | 1.06% | $376,500 | $3,991 | $1,306 | $3,822 |
| Florida | 0.75% | $396,900 | $2,977 | $2,540 | $2,705 |
| Nevada | 0.47% | $455,500 | $2,141 | $988 | $1,695 |
| New Hampshire | 1.46% | $458,800 | $6,698 | $1,147 | $5,265 |
| South Dakota | 1.02% | $289,600 | $2,954 | $1,738 | $3,678 |
| Tennessee | 0.45% | $332,600 | $1,497 | $1,414 | $1,623 |
| Texas | 1.31% | $313,200 | $4,103 | $2,161 | $4,724 |
| Washington | 0.79% | $602,200 | $4,757 | $1,295 | $2,849 |
| Wyoming | 0.57% | $339,500 | $1,935 | $1,698 | $2,055 |
| United States | 0.89% | $360,600 | $3,209 | $1,547 | $3,209 |
Effective rate: median real estate taxes divided by median owner-occupied home value, Census ACS 2024 1-year. Insurance: median self-reported premium per $1,000 of home value, computed from ACS 2024 microdata. Rates vary widely by county.
New Hampshire has the highest rate of the nine (1.46%), and a median-priced home there carries about $6,698 a year in property tax. Washington's rate is below the national average, but its median home value ($602,200) makes the typical bill about $4,757. Florida and Texas owners also pay well above the national median for insurance relative to home value.
Sales tax
Sales tax is the other main source of state revenue here. These are average combined rates (state plus the population-weighted average local rate) as of midyear 2026; the U.S. average is 7.53%.
| State | State rate | Average local rate | Combined |
|---|---|---|---|
| Alaska * | 0% | 1.82% | 1.82% |
| Florida * | 6% | 0.98% | 6.98% |
| Nevada * | 6.85% | 1.39% | 8.24% |
| New Hampshire * | 0% | 0% | 0% |
| South Dakota * | 4.2% | 1.91% | 6.11% |
| Tennessee * | 7% | 2.61% | 9.61% |
| Texas * | 6.25% | 1.95% | 8.2% |
| Washington * | 6.5% | 3.07% | 9.57% |
| Wyoming * | 4% | 1.39% | 5.39% |
| California | 7.25% | 1.78% | 9.03% |
| New York | 4% | 4.54% | 8.54% |
| Illinois | 6.25% | 2.73% | 8.98% |
| Pennsylvania | 6% | 0.34% | 6.34% |
| North Carolina | 4.75% | 2.35% | 7.1% |
| Georgia | 4% | 3.56% | 7.56% |
| Ohio | 5.75% | 1.54% | 7.29% |
Tax Foundation, State and Local Sales Tax Rates, Midyear 2026. Combined rates are estimates of what a typical resident pays; the rate at a given store depends on the city and county. States also exempt different goods, such as groceries.
States marked with an asterisk have no income tax on wages. Tennessee (9.61%) and Washington (9.57%) have some of the highest combined rates in the country, above California's 9.03%. At the other end, New Hampshire has no general sales tax and Alaska has only local ones, averaging 1.82%.
No income tax is not the same as low taxes
Whether a no-tax state costs less depends on what you earn, own and buy. A $75,000 earner in Texas keeps about $4,027 more pay than in California, but on a home worth $360,600 would pay about $2,164 more in property tax at average rates. Against Illinois the math runs the other way: Texas saves about $3,568 in income tax and about $2,200 in property tax on the same home.
Renters do not pay property tax directly. High earners and people with large investment income usually gain the most from no income tax; people who spend most of what they earn feel the sales tax more. Retirees should also check how the state they are leaving taxes pensions and Social Security: many states with an income tax exempt some or all of it.
To compare a specific move, run your salary in the paycheck calculator and the income tax calculator for both states, and check housing costs in the home affordability calculator. The guide to how much house you can afford shows how property tax and insurance change your budget.
Sources
- Tax Foundation, State and Local Sales Tax Rates, Midyear 2026
- U.S. Census Bureau, American Community Survey 2024 (property tax, home values and insurance)
- Washington Department of Revenue, New tiered rates for Washington's capital gains tax
- Washington State Legislature, Final Bill Report, ESSB 6346 (Chapter 238, Laws of 2026)
- Washington Employment Security Department, Paid Family and Medical Leave premium rate for 2026
- WA Cares Fund, How it works (0.58% contribution)
- Tennessee Department of Revenue, Hall Income Tax