US Trends

which states do not have state income tax

The U.S. states that do not have a traditional broad-based state income tax on wages and salaries are: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Core list: states with no state income tax

These nine states do not tax regular earned income such as wages and salaries at the state level.

  • Alaska
  • Florida
  • Nevada
  • New Hampshire (fully phased out its tax on interest/dividends by 2025)
  • South Dakota
  • Tennessee (no tax on wages; prior tax on investment income fully phased out by 2021)
  • Texas
  • Washington
  • Wyoming

Residents in these states still pay federal income tax, and local taxes may also apply.

Important fine print

Even though these states have no general personal income tax, some have other targeted taxes that feel similar in practice.

  • Washington
    • No tax on wages, but does impose a state-level tax on certain long-term capital gains above specific thresholds.
  • New Hampshire
    • Historically taxed interest and dividends, but that tax is fully repealed as of 2025, so there is now no broad-based income tax on individuals.
  • Several of these states
    • Rely more heavily on sales taxes , property taxes , or specific business and resource taxes (tourism, oil, gaming) to fund government services.

How “no income tax” affects you

Living in a state with no income tax does not always mean an overall lower tax burden.

  • Some no–income-tax states have:
    • Higher sales tax rates.
    • Higher property taxes or special excise taxes.
    • Fees and other revenue tools that can offset the savings from $0 state income tax.
  • The real impact on your wallet depends on:
    • Your income level and mix (wages vs. investments).
    • Whether you own a home.
    • Your spending patterns (how much you buy that’s subject to sales tax).

Mini FAQ

Q: Which states have absolutely no state tax at all?
None; every state raises revenue somehow, through sales taxes, property taxes, excise taxes, fees, or other mechanisms.

Q: Is moving to a no–income-tax state always better?
Not necessarily; for some people, higher property or sales taxes can cancel out or exceed the savings from no state income tax.

Information gathered from public forums or data available on the internet and portrayed here.