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Nine states charge no broad-based personal income tax in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. That does not mean living there is tax-free. These states typically make up the lost revenue through higher sales tax, property tax, or, in Washington’s case, a capital gains tax on high earners.
KEY TAKEAWAYS
- The 9 no-income-tax states in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
- New Hampshire only fully joined this list in 2025, after phasing out its old tax on interest and dividend income.
- Washington is a partial exception: it has no wage income tax, but does tax capital gains above a high threshold for wealthy residents.
- No income tax does not mean low overall taxes. These states tend to lean more heavily on sales tax and property tax instead.
- You still owe federal income tax and file a federal return no matter which state you live in. State tax is separate from federal.
Which States Have No Income Tax in 2026?
| State | Notable tradeoff |
|---|---|
| Alaska | No state sales tax either in most areas; relies on oil revenue |
| Florida | Higher property insurance costs in many areas |
| Nevada | Relies heavily on tourism and gaming tax revenue |
| New Hampshire | Some of the highest property tax rates in the country |
| South Dakota | Low overall tax burden across the board |
| Tennessee | One of the highest combined state and local sales tax rates |
| Texas | High property tax rates relative to home values |
| Washington | Taxes capital gains above a high threshold for top earners |
| Wyoming | Low overall tax burden, benefits from mineral extraction revenue |
Why Doesn’t “No Income Tax” Mean Tax-Free?
States need revenue to fund roads, schools, and public services, so a state without an income tax typically leans harder on other taxes to make up the difference. According to the Tax Foundation’s 2026 state tax data, no-income-tax states commonly rank higher on sales tax, property tax, or excise taxes (like gas and cigarette taxes) than states with an income tax.
The real question when comparing states is not just the income tax line, it is your total tax burden as a share of what you earn and spend, factoring in housing costs, sales tax on everyday purchases, and property tax if you own a home.
Does New Hampshire Really Have No Income Tax?
As of 2026, yes. New Hampshire never taxed regular wage income, but for years it taxed interest and dividend income above a small exemption. That tax was fully phased out starting January 1, 2025, which is why New Hampshire now appears cleanly on the no-income-tax list. It still has some of the highest property tax rates in the country, so the tradeoff shows up elsewhere.
Why Is Washington Sometimes Left Off the List?
Washington has no tax on wages or salaries, which is why it makes most no-income-tax lists. However, the state does apply a capital gains tax to long-term gains above a high annual threshold, aimed at very high earners rather than typical wage income. If you are comparing states purely on wage income tax, Washington behaves like the other eight. If your income includes large investment gains, it is worth checking the current threshold before assuming Washington is entirely tax-free.
Do You Still Have to File a Federal Return?
Yes. Living in a no-income-tax state has zero effect on your federal tax obligation. You still file a federal return every year and follow the same federal tax brackets and standard deduction rules as everyone else. State income tax is a completely separate system layered on top of, or in these nine cases, absent from, your federal return.
If you are weighing a move partly for tax reasons, it is also worth checking whether your current or target state has adopted the new OBBBA no-tax-on-tips and no-tax-on-overtime deductions, since state conformity varies widely and can matter more than the headline “no income tax” label for tipped or overtime-heavy workers.
Should Taxes Be the Only Reason to Move?
Probably not on their own. Cost of living, job market, and housing costs usually swing your total finances more than the state income tax line alone. A no-income-tax state with expensive housing and high property tax can easily cost more overall than a state with a modest income tax and cheaper housing. Run the full comparison, not just the tax label, before treating “no income tax” as the deciding factor.
FAQ
Which states have no income tax in 2026?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Is New Hampshire really tax-free now?
For income tax purposes, yes, as of 2025 when it fully repealed its tax on interest and dividends. It still has notably high property taxes.
Does Washington have any income tax at all?
No tax on wages, but it does tax capital gains above a high threshold aimed at high earners, so it is not a complete exception for everyone.
Do I still pay federal taxes if I live in a state with no income tax?
Yes. Federal income tax applies regardless of your state, and state income tax is a separate, additional layer that these nine states simply do not charge.
Bottom Line
Nine states charge no broad income tax in 2026, but they typically recover that revenue through higher sales, property, or other taxes, so total cost of living matters more than the income tax label alone. Compare your full tax picture, not just one line item, before making a decision based on state taxes.
A quick note: state tax rules and thresholds change and can vary by your specific income type, so this guide is a starting point, not personalized tax advice. For a decision as big as relocating for taxes, a CPA familiar with both states can run the real numbers for your situation.
