Which states have no income tax?

Nine: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. New Hampshire taxed interest and dividends until the end of 2024 but has never taxed wages; that tax is now fully repealed.

How much do you save living in a state with no income tax?

On a $100,000 salary, a single filer keeps $79,180 in Texas versus $72,802 in California — a difference of $6,378 a year, or 6.4% of gross. Whether that is a real gain depends entirely on the cost of housing where you land.

Is Washington really a no-income-tax state?

For wages, yes — but it is not a clean zero on your payslip. Washington employees fund Paid Family & Medical Leave and the WA Cares long-term care programme, which together cost about $1,290 a year on a $100,000 salary. That drops Washington to #10 of 51 on take-home pay, behind several states that do levy income tax. Most calculators show it as zero and get this wrong.

Do I pay income tax based on where I live or where I work?

Generally where you live, but if you work in a different state that state may also tax the income you earned there. Most states offer a credit to prevent true double taxation, and some pairs have reciprocity agreements. If you live and work in different states, this is worth getting professional advice on — it is the most common source of unexpected state tax bills.

The 9 States With No Income Tax — and the Catch in Each

Nine states do not tax wage or salary income at all. If you live in one, your paycheck is reduced only by federal income tax and FICA — which is worth between 3.0% and 11.0% of gross pay compared with the higher-tax states, depending on how much you earn.

The nine states

Take-home pay on $100,000, single filer, in each no-income-tax state
State	Take-home	Payroll deductions	Effective rate
Alaska	$79,180	—	20.8%
Florida	$79,180	—	20.8%
Nevada	$79,180	—	20.8%
New Hampshire	$79,180	—	20.8%
South Dakota	$79,180	—	20.8%
Tennessee	$79,180	—	20.8%
Texas	$79,180	—	20.8%
Washington	$77,890	$1,290	22.1%
Wyoming	$79,180	—	20.8%

Washington is the exception that matters

Every one of these states shows a zero on the state income tax line. Only one of them does not show a zero on your actual payslip.

Washington employees fund two mandatory programmes: Paid Family & Medical Leave at 0.71% up to the wage base, and the WA Cares Fund long-term care programme at 0.58% on all wages with no ceiling. Together that is $1,290 a year on a $100,000 salary.

The consequence: Washington ranks #10 of 51 jurisdictions on take-home pay, below several states that do levy an income tax but keep total deductions lower. It is a real difference in real money, and it is invisible on every competing calculator we checked.

What each state charges instead

No state funds itself on nothing. The revenue comes from somewhere, and that somewhere is usually sales tax, property tax, or an extractive industry:

Alaska: Funded largely by oil and gas revenue, and the only state that pays residents an annual dividend from its Permanent Fund. The trade-off is cost of living and remoteness, not tax.
Florida: Leans on sales tax and tourism, plus property tax. Homeowner insurance costs have risen sharply and are now a larger annual line than income tax would be in many states.
Nevada: Gaming and tourism revenue, plus one of the higher combined sales tax rates in the country.
New Hampshire: No wage tax and no sales tax, funded instead by notably high property tax. Its interest and dividends tax was fully repealed at the end of 2024.
South Dakota: Sales tax and a large financial-services sector. Low overall tax burden by most measures.
Tennessee: High combined sales tax — among the highest in the nation — standing in for income tax.
Texas: No income tax, but property tax rates are among the highest in the US, which shifts the burden onto homeowners rather than earners.
Washington: Funded by high sales tax and a business gross-receipts tax. Also levies 7% on long-term capital gains above an annual threshold, and employees fund two payroll programmes.
Wyoming: Mineral extraction revenue covers most of the state budget. Very low overall burden.

Before you move for the tax

Income tax is one line in a much larger budget, and it is rarely the line that decides whether a move makes you better off. Three things routinely swamp it:

Housing. A $6,378 tax saving disappears against a few hundred dollars a month of extra rent or mortgage.
Property tax. Texas and New Hampshire have some of the highest rates in the country. If you buy, a large share of the income tax saving comes straight back out.
Sales tax. Tennessee and Washington have among the highest combined rates. This falls hardest on people who spend most of what they earn.

The tax difference is real and worth knowing precisely — that is what the state comparison tool is for. Just do not let it be the only number in the decision.