The 9 states with no income tax in 2026
These states don't tax wages or salaries in 2026:
Two of them used to tax investment income and no longer do. Tennessee's Hall tax on interest and dividends was fully repealed in 2021, and New Hampshire's interest and dividends tax ended on January 1, 2025. That makes 2026 the second year New Hampshire has no income tax of any kind.
Washington is the one to watch. It has no tax on wages, but it does tax capital gains (more below) and has passed a 9.9% tax on income over $1 million that is scheduled to start in 2028. A ballot measure to repeal it, Initiative 645, is on the November 3, 2026 ballot.
How they make up for it
States still need money for schools, roads and services. Without an income tax, most lean on sales taxes, property taxes or both. These are the latest figures for each state:
| State | State sales tax | Median property tax bill | Median home value | Effective property tax rate |
|---|---|---|---|---|
| New Hampshire | none | $6,707 | $458,800 | 1.46% |
| Washington | 6.5% | $4,729 | $602,200 | 0.79% |
| Texas | 6.25% | $4,108 | $313,200 | 1.31% |
| Alaska | none (local only) | $3,976 | $376,500 | 1.06% |
| Florida | 6% | $2,993 | $396,900 | 0.75% |
| South Dakota | 4.2% | $2,940 | $289,600 | 1.02% |
| Nevada | 6.85% | $2,143 | $455,500 | 0.47% |
| Wyoming | 4% | $1,947 | $339,500 | 0.57% |
| Tennessee | 7% | $1,488 | $332,600 | 0.45% |
| United States | $3,211 | $360,600 | 0.89% |
Median bills and home values are for owner-occupied homes from the Census Bureau's 2024 American Community Survey. The effective rate is the median bill divided by the median value, so treat it as an approximation. Local sales taxes come on top of the state rate. Tennessee and Washington have some of the highest combined sales tax rates in the country, around 9.5%.
Three kinds of no-income-tax state
- High property tax: New Hampshire and Texas. New Hampshire has neither an income tax nor a general sales tax, so property taxes do most of the work, and its median bill is more than double the national figure. Texas homeowners pay about 28% more than the national median. See our Texas rates by city and New Hampshire rates by town.
- High sales tax: Tennessee, Washington and Nevada. These states keep property taxes low and collect more at the register. Tennessee's median property tax bill is less than half the national median.
- Resource and tourism revenue: Alaska, Wyoming, Florida and South Dakota. Oil, gas and minerals (Alaska, Wyoming) and tourist spending (Florida) shift part of the cost to non-residents. Florida's property tax bills are close to the national median, and lower for long-time owners because of the homestead exemption and the Save Our Homes cap.
Which state is actually cheapest depends on you. A high earner who rents does best in a high-property-tax state like Texas. A retiree with a paid-off house and modest spending may pay less overall in Tennessee or Wyoming. Our guide to moving states and best states for retirees run those comparisons.
State-by-state notes
- Florida: the state constitution bans a personal income tax. See does Florida have a state income tax?
- Texas: a 2019 constitutional amendment bans a personal income tax, and 2025 amendments added bans on capital gains and estate taxes. See does Texas have a state income tax?
- Washington: 7% tax on long-term capital gains above a standard deduction ($278,000 for 2025), plus 2.9% more on gains over $1 million from 2025. Real estate is exempt, so selling your house isn't affected. Washington also has an estate tax. See estate taxes by state.
- New Hampshire: no tax on wages, interest or dividends from 2025. There's a meals and rooms tax but no general sales tax. Property taxes vary enormously by town.
- Tennessee: no income tax since 2021, but a 7% state sales tax with local sales taxes on top.
- Alaska: no state income or sales tax. Some cities and boroughs levy their own sales taxes, and residents receive an annual Permanent Fund dividend.
- Nevada, South Dakota and Wyoming: no personal income tax, and low property taxes relative to home values, especially in Nevada and Wyoming.
States cutting their income tax
No state eliminated its income tax in 2025 or 2026, but several are heading that way. Mississippi's rate is 4% for 2026 and is scheduled to fall to 3% by 2030, with further cuts tied to revenue. Missouri still taxes wages but stopped taxing capital gains from 2025.
And remember the other side of the ledger: no state in the U.S. is free of property tax. See states with no property tax for the ballot measures that tried to change that.
Sources
Income tax status is from each state's constitution, statutes or revenue department: Florida Constitution Art. VII § 5, Texas Constitution Art. 8 § 24-a, the New Hampshire Department of Revenue Administration, the Tennessee Department of Revenue, and RCW 82.87 and Laws of 2026 ch. 238 for Washington. Property tax figures are from U.S. Census Bureau American Community Survey 2024 1-year tables B25103 and B25077. State sales tax rates are from the Texas Comptroller, RCW 82.08.020 and state revenue departments, and combined rates from the Tax Foundation's 2026 compilation. Mississippi and Missouri changes are from their revenue departments.