States With No Income Tax on Wages (2026)

Which nine US states do not tax wages, what that means for your paycheck, and the trade-offs.

Nine states do not tax wages and salary: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you work in one of them, your paycheck is reduced only by federal income tax, Social Security, and Medicare, plus any voluntary deductions.

How much does it save?

The savings depend on what you would pay elsewhere. A worker earning $75,000 in a state with a 5% effective rate would pay roughly $3,700 a year in state tax, which is about $140 per biweekly paycheck. Compare any state in our paycheck calculator, for example Texas versus California.

The trade-offs

States without an income tax still need revenue. They often rely on higher sales taxes, property taxes, or fees. Texas has no income tax but relatively high property taxes. Tennessee and Florida lean on sales tax. Washington has no wage tax but charges premiums for paid family leave and long-term care. So a lower paycheck deduction does not always mean a lower total cost of living.

What about New Hampshire and Tennessee?

Both once taxed interest and dividend income but have since repealed those taxes, so neither taxes wages or most investment income at the state level today.

Does it matter where my employer is based?

Generally, state income tax follows where you physically work and where you live, not where the company is headquartered. Remote workers who live in one state and work for a company in another should check both states' rules, since some states tax income earned from in-state employers.

Tax rules change each year, so confirm current rules with your state revenue department.

Updated October 2026. For information only, not tax advice.