States With No Income Tax (2026): Take-Home Pay and the Trade-Offs

Nine states do not tax wages in 2026. See take-home pay, sales tax, cost of living and payroll deductions compared across every no-income-tax state.

Updated September 29, 20262026 tax year
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No-income-tax states โ€” 2026 guide from PaycheckByState

The nine states with no wage income tax

In 2026 Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wage income. On a $75,000 salary a single filer in these states takes home about $61,593 before any state payroll deductions โ€” more than in most income-tax states โ€” but the full picture includes sales tax, cost of living and other programs.

Take-home pay, sales tax and cost of living compared

Sorted by cost-of-living-adjusted take-home pay on a $75,000 salary (single filer). Adjusted pay divides take-home by each state's price level (US = 100).

StateTake-homeState payroll deductionsCombined sales taxPrice levelAdjusted take-homeMedian household income
South Dakota$61,593None6.11%88.6$69,528$76,881
Tennessee$61,593None9.61%91.9$67,043$71,997
Wyoming$61,593None5.39%92.7$66,449$75,532
Texas$61,593None8.20%97.1$63,460$79,721
Nevada$61,593None8.24%100.0$61,605$81,134
Alaska$61,593None1.82%102.4$60,173$95,665
Florida$61,593None6.98%103.4$59,559$77,735
New Hampshire$61,593NoneNone104.2$59,130$99,782
Washington$60,552PFML, WA Cares (LTC)9.57%107.0$56,584$99,389

State-by-state notes

South Dakota

South Dakota has no personal income tax and a relatively low combined sales tax, and it has no state disability or paid-leave payroll deduction. On $75,000, take-home is $61,593 and the price level is 88.6 against a national 100.

Tennessee

Tennessee does not tax wages; its former "Hall tax" on investment income was fully repealed. Sales tax is among the highest in the nation. On $75,000, take-home is $61,593 and the price level is 91.9 against a national 100.

Wyoming

Wyoming has no personal income tax and a low combined sales tax, and it has no state disability payroll deduction. On $75,000, take-home is $61,593 and the price level is 92.7 against a national 100.

Texas

Texas has no personal income tax and relies on sales and property taxes. It has no state disability or paid-leave payroll deduction. On $75,000, take-home is $61,593 and the price level is 97.1 against a national 100.

Nevada

Nevada has no personal income tax and funds government largely through sales and gaming taxes, and it has no state disability payroll deduction. On $75,000, take-home is $61,593 and the price level is 100.0 against a national 100.

Alaska

Alaska has no state income tax and no state sales tax, though many municipalities levy local sales tax. Eligible residents also receive an annual Permanent Fund Dividend. On $75,000, take-home is $61,593 and the price level is 102.4 against a national 100.

Florida

Florida has no personal income tax and relies heavily on sales and tourism taxes. It has no state disability or paid-leave payroll deduction. On $75,000, take-home is $61,593 and the price level is 103.4 against a national 100.

New Hampshire

New Hampshire does not tax wages; its former tax on interest and dividends has been repealed. It also has no general sales tax. On $75,000, take-home is $61,593 and the price level is 104.2 against a national 100.

Washington

Washington has no wage income tax but charges a capital gains tax on large gains, and workers pay premiums for Paid Family and Medical Leave and WA Cares. On $75,000, take-home is $60,552 and the price level is 107.0 against a national 100.

The trade-offs

  • Other taxes: lower income tax is often offset by higher sales or property taxes. Tennessee and Washington have the highest combined sales tax rates in this group.
  • Cost of living: Florida and Washington are pricier than the national average; South Dakota, Tennessee and Wyoming are cheaper.
  • Payroll programs: Washington employees pay PFML and WA Cares premiums even without an income tax.
  • Income differences: the tax you save matters less than the wage you can earn locally.

Compare with income-tax states on the all-states ranking.

Working near a border

If you live in one state and work in another, tax follows the rules of the work state and any reciprocity agreement. Living in a no-income-tax state but working in an income-tax state generally means paying tax to the work state. See our reciprocity guide.

Frequently asked questions

Which states have no income tax in 2026?

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wage income.

Are there other taxes in no-income-tax states?

Yes. They rely on sales, property, excise and business taxes, and Washington adds a capital gains tax. Some also have state payroll programs for leave and long-term care.

Do I still pay federal tax in these states?

Yes. Federal income tax, Social Security and Medicare apply everywhere.

Try it with your numbers

Sources

Estimates for information only, not tax advice. See our disclaimer and editorial policy.

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On this page (8 sections)
  1. The nine states
  2. Take-home & cost of living compared
  3. State-by-state notes
  4. The trade-offs
  5. Working near a border
  6. FAQ
  7. Try it with your numbers
  8. More guides