States with no income tax (2026): are they really cheaper?
9 states don't tax your paycheck. But some make it up with high property taxes, and housing costs swing far more than taxes. Here's the full picture from Census and state data.
Updated October 23, 2026 · 6 min read · Numbers computed with our tested calculators and official sources.
Short answer
In 2026, 9 states don't tax wages: Tennessee, Nevada, Wyoming, Florida, South Dakota, Alaska, Texas, New Hampshire, Washington. You keep more of each paycheck — about $3,763 a year more than in California on a $75,000 salary. But several of these states lean on property taxes, and what you pay for housing usually matters more than income tax. Compare the full cost before you move.
The 9 states, side by side
| State | Take-home on $75,000 | Property tax rate (rank) | Median tax bill | Owner costs / mo | Transfer tax on $400k |
|---|---|---|---|---|---|
| Tennessee | $61,593 | 0.45% (46th) | $1,488 | $1,637 | $1,892 |
| Nevada | $61,593 | 0.47% (45th) | $2,143 | $2,008 | $2,040 |
| Wyoming | $61,593 | 0.57% (38th) | $1,947 | $1,815 | $0 |
| Florida | $61,593 | 0.75% (26th) | $2,993 | $2,168 | $4,780 |
| South Dakota | $61,593 | 1.01% (18th) | $2,940 | $1,739 | $400 |
| Alaska | $61,593 | 1.06% (16th) | $3,976 | $2,253 | $0 |
| Texas | $61,593 | 1.31% (8th) | $4,108 | $2,211 | $0 |
| New Hampshire | $61,593 | 1.46% (4th) | $6,707 | $2,399 | $6,000 |
| Washingtontaxes large capital gains | $60,552 | 0.79% (24th) | $4,729 | $2,519 | $6,400 |
Take-home: single filer, 2026 federal tax, Social Security, Medicare and state payroll premiums. Property tax rate = median taxes ÷ median home value; rank 1 = highest of 51 (Census ACS 2024). Owner costs: median monthly housing costs for owners with a mortgage (ACS 2024). Transfer tax includes typical local add-ons. Red = above the national 0.89% property tax rate.
Where the money comes from instead
- Property tax. South Dakota, Alaska, Texas, New Hampshire tax homes above the national rate. On the median Texas home ($313,200), that's $4,108 a year. Property tax by state.
- Sales and other taxes. Many of these states rely on sales taxes, which our data doesn't cover — check state and local rates where you'd shop. New Hampshire has no general sales tax either, and its property tax (1.46%) is among the highest.
- Payroll premiums. Washington has no income tax but charges paid family leave and long-term-care premiums, so a $75,000 salary nets $60,552 there.
Moving to save on taxes? Run the full math
- Compare your paycheck in both states with the moving states tax calculator.
- Price a home with the state's property tax in the mortgage calculator (pre-filled state pages, e.g. Texas, Florida).
- Add closing costs and transfer taxes with the closing cost calculator.
- Check insurance quotes — homeowners insurance varies a lot between states and isn't in these tables.
For every state, not just these nine, see take-home pay by state.
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Frequently asked questions
Which states have no income tax in 2026?+
9 states don't tax wages: Tennessee, Nevada, Wyoming, Florida, South Dakota, Alaska, Texas, New Hampshire, Washington. Washington taxes only large capital gains, and New Hampshire's former tax on interest and dividends ended after 2024.
Are states with no income tax cheaper to live in?+
Not automatically. They collect revenue in other ways — South Dakota, Alaska, Texas, New Hampshire have property tax rates above the national 0.89%. Housing costs vary more than taxes do: median monthly owner costs with a mortgage range from $1,637 to $2,519 across these states.
How much more do you keep without state income tax?+
On a $75,000 salary, a single filer keeps $61,593 in a no-income-tax state in 2026, $3,763 more than in California ($57,830). Washington is slightly lower ($60,552) because of its paid-leave and long-term-care payroll premiums.
Do I still pay federal taxes in a state with no income tax?+
Yes. Federal income tax, Social Security and Medicare are the same in every state. Only state (and sometimes local) income tax goes away.