States With No Income Tax (2025)
9 states don't tax your paycheck — but they often tax other things instead
The 9 No-Income-Tax States
No-Income-Tax States Compared
| State | Income Tax | Sales Tax | Property Tax |
|---|---|---|---|
| Alaska | 0% | 0.0% | 1.04% |
| Florida | 0% | 6.0% | 0.89% |
| Nevada | 0% | 6.9% | 0.60% |
| New Hampshire | 0% | 0.0% | 2.18% |
| South Dakota | 0% | 4.5% | 1.31% |
| Tennessee | 0% | 7.0% | 0.71% |
| Texas | 0% | 6.3% | 1.75% |
| Washington | 0% | 6.5% | 0.98% |
| Wyoming | 0% | 4.0% | 0.61% |
How Much Could You Save?
Estimated annual state income tax savings if you moved from a typical 5% effective rate state to a no-income-tax state:
| Annual Income | Est. Tax Savings |
|---|---|
| $50,000 | $2,250/yr |
| $75,000 | $3,375/yr |
| $100,000 | $4,500/yr |
| $150,000 | $6,750/yr |
| $200,000 | $9,000/yr |
| $300,000 | $13,500/yr |
| $500,000 | $22,500/yr |
Assumes moving from a state with ~4.5% effective state income tax rate. Actual savings depend on your current state. 10-year projection assumes 7% annual return on savings.
State-by-State Breakdown
Alaska
View tax details →Income Tax
0%
Sales Tax
0.0%
Property Tax
1.04%
Why no tax: Funded by North Slope oil revenues. The Alaska Permanent Fund Dividend actually pays residents annually.
Trade-off: No state income tax AND no sales tax, but cost of living is high due to remote geography.
Best for: Outdoor enthusiasts, oil/gas workers, remote workers who value wilderness
Florida
View tax details →Income Tax
0%
Sales Tax
6.0%
Property Tax
0.89%
Why no tax: Tourism and real estate tax revenues fund the state. Constitutional ban on income tax since 1924.
Trade-off: Higher property taxes and sales tax (6% state rate, up to 8.5% with local). Hurricane insurance is expensive.
Best for: Retirees (especially: no tax on Social Security or retirement income), remote workers
Nevada
View tax details →Income Tax
0%
Sales Tax
6.9%
Property Tax
0.60%
Why no tax: Gaming taxes and tourism revenues fund government. Constitutional prohibition on income tax.
Trade-off: 6.85% sales tax, and Las Vegas area costs have risen sharply. Water scarcity is a long-term issue.
Best for: Entrepreneurs, entertainers, people leaving California
New Hampshire
View tax details →Income Tax
0%
Sales Tax
0.0%
Property Tax
2.18%
Why no tax: Live Free or Die philosophy — minimal government spending. NOTE: taxes interest and dividends (phased out by 2025).
Trade-off: Highest property taxes in the region. No sales tax either (unique combination).
Best for: High earners, Bostonians seeking lower taxes with city proximity
South Dakota
View tax details →Income Tax
0%
Sales Tax
4.5%
Property Tax
1.31%
Why no tax: Low population with significant agricultural and financial sector revenues.
Trade-off: 4.5% sales tax. Property taxes are moderate. Limited public services vs. coastal states.
Best for: Business owners (favorable LLC/trust laws), retirees, ranchers
Tennessee
View tax details →Income Tax
0%
Sales Tax
7.0%
Property Tax
0.71%
Why no tax: Eliminated the Hall Tax (investment income tax) in 2021. Now truly zero income tax.
Trade-off: 7% state sales tax (highest in the nation), local rates push total to ~9-10% in Nashville/Memphis.
Best for: Music industry, healthcare workers, retirees (no tax on Social Security)
Texas
View tax details →Income Tax
0%
Sales Tax
6.3%
Property Tax
1.75%
Why no tax: Oil and gas revenues plus high property taxes fund the state. No income tax written into constitution.
Trade-off: Property taxes are among the nation's highest (1.6-2%+ effective rates in many counties). 6.25% sales tax.
Best for: Tech workers (Austin), energy sector, business owners
Washington
View tax details →Income Tax
0%
Sales Tax
6.5%
Property Tax
0.98%
Why no tax: Sales tax and B&O (business & occupation) tax fund the state. No income tax in constitution.
Trade-off: 6.5% sales tax plus local, totaling 8-10% in Seattle area. High cost of living, especially housing.
Best for: Tech workers (Microsoft, Amazon, Boeing), outdoor enthusiasts
Wyoming
View tax details →Income Tax
0%
Sales Tax
4.0%
Property Tax
0.61%
Why no tax: Mineral extraction taxes (coal, oil, natural gas) fund much of the state budget.
Trade-off: Very low property taxes (0.57%). 4% sales tax. Favorable overall tax burden.
Best for: Ranchers, outdoor enthusiasts, wealthy individuals (favorable estate planning)
Frequently Asked Questions
Is it worth moving to a no-income-tax state?
It depends on your income and the specific states involved. High earners ($200k+) in states like California (13.3% top rate) or New York save tens of thousands annually. At lower incomes, the benefits are smaller and may be offset by higher housing costs in popular no-tax states like Florida or Texas.
Do no-income-tax states have worse public services?
Not necessarily. Wyoming and Alaska have strong school funding from mineral revenues. However, some no-tax states like Tennessee and Nevada rank lower on education spending per pupil. Public service quality varies significantly by county and city within each state.
Can states tax remote workers who live elsewhere?
If you physically work in a state, that state may tax your income regardless of where your employer is based. Some states (notably New York) have "convenience of the employer" rules that can tax remote workers who occasionally visit the office.
What about Washington state's capital gains tax?
Washington enacted a 7% capital gains tax on gains exceeding $250,000 (starting 2023), though it applies only to realized long-term capital gains on certain assets — not wages. It is not a broad income tax.
Related Tools
Sources
- • Tax rates: Tax Foundation, "State Individual Income Tax Rates and Brackets" (January 2025)
- • Property tax rates: Lincoln Institute of Land Policy / Tax Foundation effective rate data
- • Sales tax: Tax Foundation state sales tax rates
- • Cost of living classification: Bureau of Economic Analysis Regional Price Parities (RPP) 2023