States With No Income Tax in 2026: The Nine, and What Each Charges Instead

Which states have no income tax in 2026?

States with no income tax on wages in 2026 are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, nine in all, and each produces USD 0 of state income tax on every wage profile we compute, from USD 100,000 to USD 1,000,000.

That zero is a 2026 computation by Mirabello from each state's official position, on a stated scope: wages only, standard deduction, no itemising, no local tax, no refundable credits; the family profile is married filing jointly, one earner, two children aged 10 and 8. It is general information and not tax advice. Confirm your own position with the state revenue department or a qualified US tax adviser.

Two of the nine reached this position through repeal rather than by never having a tax on investment income. New Hampshire's interest and dividends tax was repealed in 2025, and Tennessee's Hall tax on dividends and interest has also been repealed. You can read each state in full on its own page: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, all within our USA relocation guide.

What do states with no income tax charge instead?

States with no income tax still levy other taxes, and the state sales tax alone runs from 0% in Alaska and New Hampshire to 7% in Tennessee, on the state rates we hold for 2026 from each revenue department, before any local sales tax is added at the till.

Read the sales tax column as a floor. Local rates sit outside it, so a state rate of 0% does not always mean no sales tax at the point of purchase: Alaska publishes its own sales tax information for that reason. We do not publish a single combined figure, because the local layer changes by town and a statewide average would not describe your address. Texas and Florida both set out their state rates and rules directly.

How much sales tax matters depends on what you spend rather than what you earn. A household that spends a modest share of a high income feels this column far less than the income tax column it replaces, while a household living on savings feels it more. That is why the table sits beside property data and not on its own.

Which states with no income tax have the lowest property tax?

Property tax among states with no income tax is lowest on this measure in Tennessee at 0.46% and Nevada at 0.47%, and highest in New Hampshire at 1.43%, the measure being median real estate taxes paid against median home value in the American Community Survey 2025.

A rate is not a bill, so read the two columns together. New Hampshire's median household pays USD 6,983 a year and Tennessee's USD 1,558. Washington's effective rate of 0.81% is well below Texas at 1.32%, yet the Washington median of USD 4,911 is above the Texas median of USD 4,205, because the median Washington home is valued at USD 605,600 against USD 318,100 in Texas (American Community Survey 2025).

These are statewide medians. Your own bill follows the county, the school district, the assessed value and any homestead rules that apply, so use the table to frame a question for a specific property, not to estimate one.

Does Washington tax capital gains if it has no income tax?

Washington does tax long-term capital gains despite levying no tax on wages, with a 7% excise on the first USD 1 million of taxable gains and 9.9% in total above USD 1 million (7% plus a 2.9% surcharge), from tax year 2025, according to the Washington Department of Revenue.

The rule is set out in the department's notice on the tiered rates, and its income tax page covers the wider position. The other eight states do not tax capital gains at state level in our data, because they have no individual income tax.

This is the point where the nine stop behaving alike. If most of your income is salary, the Washington row reads like the others. If a large part of the next few years' income will come from selling a company or a concentrated portfolio, the same state needs its own calculation before you compare it with Nevada or Wyoming.

Will Washington keep having no income tax?

Washington's position changes on 1 January 2028, when Senate Bill 6346, passed by the 2026 legislature, applies a 9.9% tax to annual adjusted gross income above USD 1 million, according to the Department of Revenue, which states that Washington does not currently have an individual income tax.

For 2026 Washington therefore remains one of the nine, and income below USD 1 million is outside the new tax. If you are planning years ahead on a high income, read the state's own income tax page before you rely on the zero in our tables.

Do states with no income tax also have no estate tax?

Estate tax is not absent from every state with no income tax, because Washington levies one with a USD 3,000,000 exclusion and a top rate of 20%, per its Department of Revenue tables, while Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas and Wyoming show no state estate tax in our data.

We state only what we have read from an official source, so this article takes no position on estate tax in Tennessee or inheritance tax in Wyoming. The other states in the group show no inheritance tax. Washington publishes its estate tax tables directly, and our guide to US state estate and inheritance taxes covers the wider picture.

Are housing costs lower in states with no income tax?

Housing costs in states with no income tax vary widely, with the Bureau of Economic Analysis housing price index for 2024 running from 67.6 in South Dakota to 126 in Washington, where the US average is 100, so having no income tax tells you nothing by itself about rent or purchase prices.

The all-items index narrows that spread, from 88.6 in South Dakota to 107 in Washington (Bureau of Economic Analysis Regional Price Parities 2024). Florida shows how the two can diverge: 103.4 on all items and 122.1 on housing. Median gross rent runs from USD 1,087 a month in Wyoming to USD 1,873 in Washington (American Community Survey 2025). Residential electricity adds a further variable, from 13.36 US cents per kWh in Nevada to 27.32 in Alaska (Energy Information Administration, year to date through August 2026). Our article on cost of living by US state takes these measures across the country.

What should you check before choosing a state with no income tax?

Before choosing among the nine states with no income tax, check three things in order: where your income is actually earned and taxed, whether your current state still treats you as a resident after the move, and what federal income tax continues to apply, since no state decision removes it.

Residency is usually the hard part. Leaving a state that taxes income is a question of facts about domicile and days, and our guide to US state tax residency rules sets out the tests. If you are comparing specific moves, we have worked figures for California to Texas and New York to Florida, and the state income tax table by income level shows the states that do charge it.

If you are arriving from abroad, the state comes after the immigration route. Our USA immigration overview covers the routes, our note on the idea of a US golden visa explains the terminology, and this guide for green card holders looks at the state choice. Readers from Germany, Switzerland and Austria should also see US taxes after moving. If you are still weighing the US against residency elsewhere, our golden visa programme overview is the wider comparison. When you want to test a specific plan, you can talk it through with our team, in any of 11 languages, or put your first questions to Mira, by Mirabello, our AI guide.

How we built these figures

Every figure above comes from an official source and carries its year: state revenue departments and legislatures for tax rules, the US Census Bureau, the Bureau of Economic Analysis and the Energy Information Administration for the cost indicators. We do not publish a ranking of these states, because the weight of each column depends on your income, your assets and how you spend. The full approach is on our methodology page.