No Income Tax States in the US: Salary Differences for 2026
Eight states have zero state income tax. See exactly how much more you'd take home compared to high-tax states like California and New York.
The Eight States with No Income Tax
As of 2026, these eight states impose no broad-based state income tax:
| State | State Nickname | Population Rank | Notable Notes |
|---|---|---|---|
| Alaska | The Last Frontier | #47 | Also has no state sales tax |
| Florida | The Sunshine State | #3 | Popular retirement destination |
| Nevada | The Silver State | #31 | Reliant on tourism taxes |
| South Dakota | The Mount Rushmore State | #46 | No personal or corporate income tax |
| Tennessee | The Volunteer State | #16 | Only taxes dividends/interest |
| Texas | The Lone Star State | #2 | Largest no-income-tax state by population |
| Washington | The Evergreen State | #13 | No income tax but high sales tax |
| Wyoming | The Equality State | #50 | Lowest population in US |
Note: New Hampshire and Tennessee have "no income tax" in most cases but do tax certain dividend and interest income above specific thresholds. For wage income, they function as no-tax states.
Take-Home Pay Comparison: Same Salary, Different States
Let's compare the same $100,000 annual salary (single filer, 5% 401(k), $250/month health insurance) across five states in 2026:
| State | State Tax Rate | Annual State Tax | Monthly Net | Annual Net |
|---|---|---|---|---|
| Texas | 0.0% | $0 | $5,688 | $68,256 |
| Florida | 0.0% | $0 | $5,688 | $68,256 |
| Washington | 0.0% | $0 | $5,688 | $68,256 |
| Nevada | 0.0% | $0 | $5,688 | $68,256 |
| California | 7.25% | $4,502 | $5,313 | $63,754 |
| New York | 6.85% | $4,257 | $5,349 | $64,107 |
| Oregon | 9.0% | $5,598 | $5,222 | $62,658 |
| Minnesota | 9.85% | $6,129 | $5,164 | $61,963 |
Annual Savings by State
Here's how much a $100,000 earner saves annually by living in a no-tax state vs. high-tax alternatives:
| Comparison | Annual Savings | Monthly Savings |
|---|---|---|
| Texas vs California | $4,502 | $375 |
| Texas vs New York | $4,257 | $355 |
| Texas vs Oregon | $5,598 | $467 |
| Texas vs Minnesota | $6,129 | $511 |
Comparison by Income Bracket
The savings from no-income-tax states grow with your income. Here's a broader look:
| Annual Salary | No-Take-Home (TX) | CA Take-Home | Annual Diff | Monthly Diff |
|---|---|---|---|---|
| $50,000 | $37,671 | $35,429 | $2,242 | $187 |
| $75,000 | $51,645 | $48,706 | $2,939 | $245 |
| $100,000 | $68,256 | $63,754 | $4,502 | $375 |
| $150,000 | $99,732 | $90,935 | $8,797 | $733 |
| $200,000 | $130,155 | $115,764 | $14,391 | $1,199 |
The Other Side: Sales and Property Taxes
No-income-tax states often compensate through other taxes. Here's a 2026 comparison of combined tax burdens:
| State | State Income Tax | Sales Tax Rate | Avg Property Tax (Rate) | Overall Tax Burden Rank |
|---|---|---|---|---|
| Texas | 0% | 6.25% | 1.81% | #46 (high) |
| Florida | 0% | 7.0% | 0.98% | #23 (moderate) |
| Washington | 0% | 10.1% | 0.92% | #48 (high) |
| Nevada | 0% | 8.375% | 0.60% | #15 (moderate-low) |
| Alaska | 0% | 0% | 0.98% | #2 (lowest) |
| California | 7.25% | 7.25% | 0.74% | #49 (highest) |
| New York | 6.85% | 8.0% | 0.88% | #50 (highest) |
Source: Federation of Tax Administrators, Tax Foundation State Tax Rankings 2026. Overall rank: #1 = lowest burden, #50 = highest burden.
Important Caveat
While no-income-tax states offer higher take-home pay from wages, the total tax picture matters. For retirees, states like Florida and Texas have lower overall tax burdens. For high-income earners still working, the income tax savings dominate and typically outweigh any higher property or sales tax differences.
Remote Work Considerations
For remote workers, state tax nexus rules are complex. Key points:
- Physical presence: Most states consider you a resident for tax purposes if you spend more than a certain number of days (typically 183) in the state
- NY and CA "remote worker" rules: New York and California have asserted the right to tax remote workers even if they live in another state and work for an in-state employer
- Reciprocity agreements: Some states have tax reciprocity (e.g., PA/NJ, IL/IA), preventing double taxation
- Check your specific situation: Remote workers should consult a tax professional regarding potential multi-state tax obligations
Calculate Your Own Savings
Use our State-to-State Pay Comparison Calculator to see your exact take-home in any two states side by side.
FAQ
Moving from CA to TX for $100K saves ~$4,500/year. From NY to FL for $150K saves ~$14,000/year. Savings grow with income.
Yes. All states have property, sales, and excise taxes. WA has high sales tax, TX has high property tax. AK has neither sales nor income tax.
Higher property or sales taxes in some states. Less public funding for education and infrastructure in certain cases. Consider the full tax picture.
- Federation of Tax Administrators: State Tax Rates
- Tax Foundation: State Tax Rankings 2026
- IRS 2026 Tax Brackets
Last updated: July 28, 2026.