States With No Income Tax: The Nine States That Don't Tax Wages in 2026

If you are comparing job offers or planning a move, one of the first numbers people look up is the state income tax — or, in nine states, the lack of one. As of 2026, nine US states levy no tax on wages and salaries. Living in one of them means one less withholding line on your pay stub and no state income tax return to file on your earnings. But "no income tax" does not mean "no taxes," and the list comes with nuances that matter. This guide covers which states qualify, the exceptions inside the fine print, and the trade-offs to weigh before treating the tax line as the whole story.

The nine states with no tax on wages in 2026

For an employee whose income is entirely wages, the practical effect is simple: your employer withholds federal tax and FICA from your pay, but there is no state withholding, and you do not file a state individual income tax return for your salary.

The nuances: three states to read carefully

Washington is the most important caveat on the list. Washington does not tax wages, but it does levy a tax on certain capital gains — the profit from selling long-term assets such as stocks above an exempt threshold. If your income is a paycheck, Washington behaves like the other eight. If a large share of your income comes from selling investments, it may not.

New Hampshire historically taxed interest and dividend income while leaving wages alone. That tax on interest and dividends was repealed effective from 2025, so from 2025 onward New Hampshire no longer taxes that investment income either — a change that completed its move onto this list in substance as well as in form.

Tennessee followed a similar path earlier. Its Hall tax fell on interest and dividend income for decades, and it was fully repealed in 2021. Tennessee wages were never taxed; since 2021 its investment income is untaxed at the state level too.

What still gets withheld in a no-income-tax state

Moving to one of these nine states does not touch the federal side of your pay stub at all. Your employer still withholds:

• Federal income tax, based on your W-4 and the federal brackets, exactly as in any other state;
• Social Security and Medicare (FICA), at the same rates nationwide;
• Any local taxes that apply where you live or work — a handful of localities in various states levy their own earnings or payroll taxes, and those are separate from the state question.

So a pay stub in Texas still shows substantial deductions. What disappears is only the state line.

The trade-offs: states raise revenue somewhere

A state with no income tax is not a state with no revenue needs. In general terms, these states typically lean more heavily on other sources:

• Sales taxes — several no-income-tax states have relatively high combined state and local sales taxes, so more of what you spend is taxed instead of more of what you earn;
• Property taxes — some fund services through notably higher property taxes, which reach you directly as a homeowner or indirectly through rent;
• Fees, excise taxes, and industry-specific taxes — energy, tourism, and gambling revenue play an outsized role in a few of these states' budgets.

Which structure suits you depends on your pattern of life. A high earner who spends modestly often benefits most from no income tax. A household that spends most of its income, or owns expensive property in a high-property-tax area, may find the saving partly handed back through the other taxes. There is no universal winner — only a fit for your circumstances.

Practical points for movers and remote workers

• The change is immediate. When you genuinely move and start working in a no-income-tax state, state withholding stops from the first paycheck under the new arrangement — you generally do not wait until the next tax year. Part-year filing rules typically apply for the year of the move in the state you left.
• Where you work matters, not just where your employer is. State tax generally follows the state where you physically perform the work. Living in a no-tax state while working across the border in a taxing state can still mean tax in the work state — a common trap for cross-border commuters and some remote-work arrangements.
• Cost of living dominates the tax line. Housing, insurance, and everyday prices differ far more between locations than the state tax difference alone for most households. Compare total budgets, not just the withholding column.

Key takeaways

• Nine states levy no tax on wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
• Washington still taxes certain capital gains; New Hampshire (from 2025) and Tennessee (from 2021) have repealed their old taxes on interest and dividends.
• Federal income tax and FICA apply in full in every state, and local taxes can exist independently.
• No-income-tax states typically rely more on sales, property, and other taxes — the benefit depends on how you earn and spend.
• State tax follows where you work; a move changes withholding from the first paycheck, but cost of living matters more than the tax line alone.

To see how your take-home pay changes state by state, try our Paycheck Calculator — it applies each state's current rules so you can compare a paycheck in a no-tax state with one anywhere else.

Keep exploring

• How Paycheck Tax Is Calculated, Step by Step
• 2026 Federal Income Tax Brackets, Explained
• FICA Taxes Explained: Social Security and Medicare
• The 2026 Standard Deduction, Explained

Put the numbers to work: Paycheck Calculator · No Tax on Overtime Calculator · No Tax on Tips Calculator

Last updated: 2026-10-31. Tax parameters: 2026 (IRS Rev. Proc. 2025-32; SSA wage base; Tax Foundation state tables).