Guide ยท tax year 2026

States with no income tax

Nine states do not tax wages. Federal tax still applies in all of them, and two take small payroll premiums of their own.

Figures checked against official sources on October 11, 2026.

Single person earning $85,000 a year, tax year 2026.
StateTaken from pay by the stateA yearTake-home pay
AlaskaAlaska unemployment insurance (0.5%)$271$68,357
FloridaNone$0$68,628
NevadaNone$0$68,628
New HampshireNone$0$68,628
South DakotaNone$0$68,628
TennesseeNone$0$68,628
TexasNone$0$68,628
WashingtonWashington Paid Family & Medical Leave (0.8072%), WA Cares (0.58%)$1,179$67,448
WyomingNone$0$68,628

How much more do you keep?

On $85,000, a single person keeps $68,628 in a state with no income tax and no payroll premiums. In the middle-ranked state, Oklahoma, the same salary leaves $65,348: a difference of $3,280 a year. Against the state that takes the most, Oregon, the difference is $6,430.

What you still pay

Federal income tax, Social Security (6.2%) and Medicare (1.45%) are the same everywhere. States without an income tax raise their money in other ways, usually sales tax, property tax or taxes on particular industries, so a bigger paycheck does not always mean a lower cost of living.

New Hampshire stopped taxing interest and dividends from 2025, and Tennessee's tax on investment income ended in 2021, so neither taxes personal income of any kind now. Washington taxes large capital gains but not wages.

Questions

Which states have no income tax in 2026?

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

Do I pay federal tax if my state has no income tax?

Yes. Federal income tax, Social Security and Medicare apply in every state.

Does moving to a no-income-tax state always save money?

It always raises your paycheck. Whether you are better off overall depends on housing, sales tax, property tax and insurance where you move.

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