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States With No Income Tax in 2026

Nine states — AK, FL, NH, NV, SD, TN, TX, WA, and WY — tax no wages in 2026. See what each taxes instead and what payroll deductions still apply.

By The TakeHome Tax DeskPublished September 1, 2026

Nine states levy no income tax on wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Residents of these states keep a larger share of their paycheck — but that does not mean zero state deductions. Payroll-based programs (such as Washington’s Paid Family and Medical Leave) still withhold from wages, and other taxes fund state government in place of income tax.

Use the paycheck calculator to see your exact take-home, or compare states with the salary comparison tool.

The Nine No-Income-Tax States at a Glance

State Wages taxed? Key notes
Alaska (AK) No No state income or sales tax. Employee UI contribution 0.5% on first $54,200 ($271/yr max). (Alaska DOL)
Florida (FL) No Revenue from sales tax, tourism taxes, and corporate income tax on businesses.
New Hampshire (NH) No Interest and Dividends Tax repealed effective Jan 1, 2025. No wage or investment income tax in 2026.
Nevada (NV) No Revenue primarily from sales and gaming taxes; no individual income tax.
South Dakota (SD) No No income tax; relies on sales tax and property tax.
Tennessee (TN) No Hall income tax on dividends was repealed effective Jan 1, 2021. No wage or investment income tax.
Texas (TX) No No individual income tax; revenue from sales and property taxes.
Washington (WA) No Capital gains excise tax applies to long-term gains above ~$278,000; wages are not taxed. Workers pay PFML and WA Cares Fund premiums (see below).
Wyoming (WY) No No income tax; energy severance taxes fund much of state government.

Washington: No Income Tax, but Payroll Deductions Remain

Washington workers still see two mandatory state payroll deductions in 2026:

  • Paid Family and Medical Leave (PFML): Employee share is 0.8072% of wages up to $184,500 — a maximum of $1,489.28 per year. (WA ESD)
  • WA Cares Fund (long-term care): 0.58% on all wages with no cap — no annual maximum. (WA Cares Fund)

On an $80,000 salary, a Washington worker pays roughly $1,110 per year in these two payroll premiums, compared to zero in Florida or Texas. Washington’s take-home is therefore slightly lower than other no-tax states at the same income, even though it has no income tax.

New Hampshire: Fully Tax-Free Since 2025

New Hampshire phased out its Interest and Dividends Tax (I&D Tax, RSA 77) over several years: 4% in 2023, 3% in 2024, and 0% starting January 1, 2025. The 2026 tax year is the second year NH collects no income, wage, or investment income tax from individuals. New Hampshire relies on property taxes, the rooms and meals tax, and business taxes.

Washington Capital Gains: Not a Wage Tax

Washington’s capital gains excise tax — 7% on long-term gains above a standard deduction of approximately $278,000 (2026 indexed amount not yet posted by the Department of Revenue as of October 2026), and 9.9% on gains above $1,000,000 — applies only to investment gains, not to wages or ordinary income. Legislation (SB 6346, signed March 2026) would impose an additional income tax starting in 2028, but that does not affect the 2026 tax year.

How These States Fund Government Without Income Tax

No-income-tax states rely on other revenue sources:

  • Sales taxes: Nevada (6.85% base), Texas (6.25% state), Washington (6.5% state), Tennessee (7% state) all have above-average rates, and local add-ons can push totals higher.
  • Property taxes: Texas has among the highest effective property tax rates in the US, routinely above 1.5%–2% of home value. Alaska has no statewide sales tax but most municipalities levy local taxes.
  • Energy and natural resource taxes: Wyoming and Alaska derive major revenue from severance taxes on oil, gas, and minerals.

What You Actually Pocket: Engine-Computed Comparison

For a single filer earning $80,000 with no retirement contributions, the engine estimates these annual take-home amounts:

State State Income Tax State Payroll Taxes Annual Take-Home
Texas (TX) $0 $0 $65,110
Florida (FL) $0 $0 $65,110
Washington (WA) $0 $1,110 $64,000

Federal income tax ($8,770) and FICA ($6,120) are the same across all three. See Moving to a No-Income-Tax State for a full comparison including California, New York, and Illinois.

State-Specific Paycheck Calculators

Other Taxes Still Matter

Moving to a no-income-tax state can meaningfully increase take-home pay from wages, but total tax burden depends on your full situation. Property taxes, sales taxes, and the cost of living in those states are not modeled by this calculator. If you are evaluating a relocation or a job offer across state lines, consider those factors alongside the paycheck savings.

Consult a tax professional when evaluating a state change that affects your business income, investments, or retirement distributions.

Frequently asked questions

Does no state income tax mean more take-home pay?+

Yes, compared to a high-tax state at the same income. But property taxes, sales taxes, and state payroll deductions — such as Washington's PFML and WA Cares Fund — still reduce your paycheck.

Is New Hampshire still a no-income-tax state in 2026?+

Yes. New Hampshire's Interest and Dividends Tax was phased to zero effective January 1, 2025. In 2026, NH has no individual income tax of any kind.

Does Washington tax wages?+

No. Washington taxes long-term capital gains above approximately $278,000 at 7%, but wages and ordinary income are not taxed. Workers do pay PFML and WA Cares Fund payroll premiums.

Can I avoid state income tax by working remotely from a no-tax state?+

Not automatically. New York applies a 'convenience-of-the-employer' rule that can tax remote workers on NY-source income even if they live elsewhere. See Working in One State, Living in Another for details.

Do no-income-tax states have other taxes?+

Yes. Texas and Nevada have higher-than-average sales taxes. Texas relies heavily on property taxes. Wyoming generates revenue from energy severance taxes. Alaska has no income tax and no sales tax but levies local sales taxes in many boroughs.

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