9 States With No Income Tax: What You Actually Keep in 2026
6 min read · Updated for 2026
Nine US states collect zero state income tax on wages in 2026. For a full-time worker earning $75K–$150K, that means thousands of extra dollars in take-home pay every year — no state withholding, no state tax return. Here's exactly what you keep in each state, with real computed numbers.
Take-Home Pay in All 9 No-Income-Tax States (2026)
Single filer, standard deduction ($16,100), 2026 IRS federal brackets. State tax = $0 in all nine states, so the only deductions are federal income tax and FICA (Social Security + Medicare).
| State | $75K Take-Home | $75K / Mo | $100K Take-Home | $100K / Mo | Details |
|---|---|---|---|---|---|
| Alaska | $61,593 | $5,133 | $79,180 | $6,598 | Full breakdown → |
| Florida | $61,593 | $5,133 | $79,180 | $6,598 | Full breakdown → |
| Nevada | $61,593 | $5,133 | $79,180 | $6,598 | Full breakdown → |
| New Hampshire | $61,593 | $5,133 | $79,180 | $6,598 | Full breakdown → |
| South Dakota | $61,593 | $5,133 | $79,180 | $6,598 | Full breakdown → |
| Tennessee | $61,593 | $5,133 | $79,180 | $6,598 | Full breakdown → |
| Texas | $61,593 | $5,133 | $79,180 | $6,598 | Full breakdown → |
| Washington | $61,593 | $5,133 | $79,180 | $6,598 | Full breakdown → |
| Wyoming | $61,593 | $5,133 | $79,180 | $6,598 | Full breakdown → |
All nine no-tax states show identical take-home because federal + FICA rates are the same regardless of state.
No-Tax States vs High-Tax States — $100K Comparison
The difference between a no-tax state and a high-tax state can exceed $14,000/year on a six-figure salary:
| State | Top State Rate | $100K Take-Home | $100K Monthly | vs Texas |
|---|---|---|---|---|
| Alaska | $0 | $79,180 | $6,598 | — |
| Florida | $0 | $79,180 | $6,598 | — |
| Nevada | $0 | $79,180 | $6,598 | — |
| New Hampshire | $0 | $79,180 | $6,598 | — |
| California | Up to 13.3% | $72,721 | $6,060 | $-6,459/yr |
| New York | Up to 10.9% | $74,228 | $6,186 | $-4,952/yr |
| New Jersey | Up to 10.75% | $75,000 | $6,250 | $-4,180/yr |
| Oregon | Up to 9.9% | $71,921 | $5,993 | $-7,259/yr |
| Illinois | Up to 4.95% | $74,350 | $6,196 | $-4,830/yr |
Important Nuances: Not All "No-Tax" States Are Equal
New Hampshire
NH does not tax wages or salaries, but levies a 3% tax on interest and dividend income in 2026 (phasing out completely by 2027). Wage earners pay $0 NH state tax.
Washington State
No income tax on wages, but Washington introduced a 7% capital gains tax in 2023 on net long-term gains above $250,000. Most wage earners are unaffected.
Tennessee
Tennessee fully eliminated the "Hall Tax" on interest and dividends in 2021. As of 2026, Tennessee is a true zero-income-tax state for all wage earners.
Alaska
No income tax and no sales tax, but Alaska has the highest cost of living of the nine states due to its remoteness. The state pays residents an annual Permanent Fund Dividend — roughly $1,300–$3,300/year depending on oil revenues.
The Trade-Off: What No-Tax States Tax Instead
States need revenue. No-income-tax states typically fund themselves through:
- Sales tax: Texas 8.25%, Nevada up to 8.38%, Washington up to 10.4% in some areas
- Property tax: Texas is notably high — average effective rate 1.6–2.5% of home value annually
- Excise taxes: Alaska and Wyoming rely heavily on oil and mineral severance taxes
- Lottery and gaming: Nevada funds significant public services through gaming revenue
Bottom line: Even accounting for higher sales and property taxes, wage earners in no-income-tax states typically take home thousands more per year than equivalent workers in high-income-tax states. The higher your salary, the larger the advantage.
Frequently Asked Questions
Should I move to a no-tax state to save money?
It depends on your salary, cost of living, and lifestyle. At $100K, moving from California to Texas can save $7,000–$12,000/year in state income tax. However, Texas has higher property taxes and rising home prices in Austin, Dallas, and Houston. Run a full cost-of-living comparison before deciding — but for most $100K+ earners, the math favors the move.
Do I still owe federal income tax in a no-tax state?
Yes. Federal income tax applies to all US workers regardless of state. The 2026 federal brackets range from 10% to 37% on taxable income. FICA taxes (Social Security 6.2% + Medicare 1.45%) also apply everywhere. Only state income tax is eliminated in these nine states.
Which no-tax state has the lowest cost of living?
South Dakota, Wyoming, and Tennessee generally have the lowest cost of living among no-tax states. Florida and Texas are moderate but rising fast. Nevada (Las Vegas) and Washington (Seattle) are higher-cost. Alaska is the most expensive due to remoteness.
Will more states eliminate income tax?
There's a strong trend toward income tax elimination. Iowa is phasing to a flat rate and eyeing full elimination. Louisiana and North Carolina have both cut rates significantly in recent years. Several other states are in active debate. It's likely that within the next decade, the no-income-tax club will grow beyond nine members.
Calculate Your Take-Home in Each No-Tax State
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