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Tax question

States With No Income Tax: Which Ones, and What You Pay Instead

Nine states do not tax wages and salaries at the state level: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. “No income tax” is a useful shorthand, but the picture is more nuanced than the headline, and residents still pay other taxes. State laws change, so verify with each state’s revenue agency.

General information only — not tax, legal or financial advice. Verify current figures at IRS.gov. Full disclaimer.

The list and notes

States with no broad wage income tax (general; verify current law)
StateNotes
AlaskaNo state income tax; relies on resource revenue. Residents may receive an annual dividend, which is federally taxable. Some localities levy sales or property taxes. See our Alaska guide.
FloridaConstitution generally prohibits personal income tax. Sales tax plus county surtaxes; see our Florida guide.
NevadaNo personal income tax. Gaming, sales and commerce-based taxes are significant; businesses may face a commerce tax and payroll-based taxes. See our Nevada guide.
New HampshireNo tax on wages. The state’s tax on interest and dividends was phased out and repealed beginning in 2025; property taxes are high. Verify current rules. See our New Hampshire guide.
South DakotaNo personal or corporate income tax; sales tax applies to many services. See our South Dakota guide.
TennesseeNo tax on wages; the former tax on interest and dividends (the “Hall tax”) was repealed. Sales tax is relatively high. See our Tennessee guide.
TexasNo personal income tax; local property taxes and sales tax; businesses may owe franchise tax. See our Texas guide.
WashingtonNo wage income tax, but a capital gains excise tax applies to certain high gains, plus a business and occupation tax; sales tax applies. See our Washington guide.
WyomingNo income tax; relies on mineral taxes, sales and property taxes.

What these states tax instead

  • Sales and use taxes — often higher or broader than average.
  • Property taxes — significant in several (Texas, New Hampshire).
  • Business taxes — gross receipts, franchise or B&O taxes in some.
  • Severance taxes on natural resources (Alaska, Wyoming).
  • Tourism and gaming taxes (Nevada, Florida).

“No income tax” doesn’t mean “no taxes”

Whether you save money depends on your spending, home value and whether you’re an employee or business owner. Compare your total tax picture, not just the income tax line. A high-spending household may pay a lot in sales tax; a homeowner may pay substantial property tax.

Federal taxes still apply

You still file a federal return. See our filing guide. And if you earned income in another state, you may owe that state’s income tax even if you live in a no-tax state.

Moving to a no-income-tax state

Moving doesn’t automatically end your tax duties to your old state. Many states use residency tests (days spent, home, family ties, domicile). If you keep ties to your former state, it may still claim you as a resident. Keep documentation of your move and consult a professional for complex cases. Part-year residents typically file in the state they left for income earned before moving.

Remote work

If you live in a no-tax state but work for an employer located in another state, rules vary: some states tax based on where the work is physically performed, while a few use “convenience of the employer” rules that can tax nonresidents working remotely. Check the employer’s state agency.

State refund tools

If you live in a no-tax state, there’s no state refund to track, but you can still check your federal refund; see Where’s My Refund? or state refund status for other states.

Frequently asked questions

Which states have no income tax?

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no broad wage income tax.

Does Washington tax capital gains?

Washington has a capital gains excise tax on certain high long-term gains; it has no wage income tax. Verify current rules with the Washington Department of Revenue.

Do residents of no-income-tax states file state returns?

Not for wages. They may need returns in other states where they earned income.

Official sources

General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.

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