Nine states in the U.S. currently have no state income tax on earned income as of January 2026.

This number has remained stable for years, with recent sources from late 2025 confirming the list even after changes like New Hampshire fully phasing out its tax on interest and dividends. These states rely on sales, property, and other taxes to fund services, which can sometimes offset the income tax savings.

The Nine States

Here's the complete, consistent list across multiple financial experts and tax sites:

  • Alaska
  • Florida
  • Nevada
  • New Hampshire
  • South Dakota
  • Tennessee
  • Texas
  • Washington
  • Wyoming

Note: Washington imposes a capital gains tax on certain high-value gains (7% on amounts over $278,000, excluding real estate), but no broad income tax on wages or salaries.

Why It Matters

Living in these states can simplify tax filing and boost take-home pay, but total tax burden varies—property taxes in Texas or sales taxes in Nevada might be higher. For instance, Wyoming funds itself via energy revenues, keeping costs low overall. Recent forum chatter on Reddit echoes this, with users debating real-world savings amid rising living costs.

Quick Trade-Offs

Aspect| Potential Benefit| Potential Drawback 158
---|---|---
Take-Home Pay| Higher on wages| Offset by sales/property taxes
Filing| Simpler, no state return| Local taxes may apply
Cost of Living| Varies (e.g., Florida affordable housing)| High in NV/WA urban areas

TL;DR: Exactly 9 states skip state income taxes, offering savings but with other taxes in play.

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