9U.S. states don't tax your paycheck — but they almost always tax something else instead. Here's the full trade-off.
This list is derived, not hand-edited: it comes from the Phase 1C data-repo's listStateTaxBrackets() accessor — any state where Tax Foundation[1]reports hasIncomeTax: false (or topMarginalRate = 0) is included. Sales-tax figures[2] come from the companion sales-tax dataset; effective property-tax rates[3] pair from the mortgage context; and BEA Regional Price Parity[4] gives the cost-of-living delta.
| State | Income Tax | State Sales | Property Tax |
|---|---|---|---|
| Alaska | 0%[1] | 0.00%[2] | 0.84%[3] |
| Florida | 0%[1] | 6.00%[2] | 0.89%[3] |
| Nevada | 0%[1] | 6.85%[2] | 0.56%[3] |
| New Hampshire | 0%[1] | 0.00%[2] | 1.93%[3] |
| South Dakota | 0%[1] | 4.50%[2] | 1.24%[3] |
| Tennessee | 0%[1] | 7.00%[2] | 0.71%[3] |
| Texas | 0%[1] | 6.25%[2] | 1.80%[3] |
| Washington | 0%[1] | 6.50%[2] | 0.98%[3] |
| Wyoming | 0%[1] | 4.00%[2] | 0.61%[3] |
Combined sales rate includes average local add-ons. Property tax rate is the state-average effective rate (%). BEA RPP of 100 = national average — above 100 is costlier.
Estimated annual income-tax savings if you moved from a typical 4.5%-effective-rate state to a no-income-tax state. 10-year projection assumes savings invested at 7% nominal return (10-year annuity factor = 14.49). This is a planning estimate, not a guarantee.
| 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 |
Income Tax
0%
State Sales
0.00%
Property Tax
0.84%
Why no income tax: Funded by North Slope oil revenues. The Alaska Permanent Fund pays residents an annual dividend.
Trade-off: No income tax AND no statewide sales tax, but cost of living is high due to geography.
Best for: Oil / gas sector, remote workers, outdoor enthusiasts.
Climate: Harsh winters, mild summers — especially in Southeast.
Income Tax
0%
State Sales
6.00%
Property Tax
0.89%
Why no income tax: Tourism and real-estate revenues fund the state. A constitutional ban on personal income tax dates to 1924.
Trade-off: Higher property taxes, 6% state sales tax (up to ~8.5% with local), and expensive hurricane insurance.
Best for: Retirees (no tax on Social Security or retirement income), remote workers.
Climate: Warm year-round; hurricane risk in summer and fall.
Income Tax
0%
State Sales
6.85%
Property Tax
0.56%
Why no income tax: Gaming taxes and tourism revenues carry most of the general fund. Constitutional prohibition on personal income tax.
Trade-off: 6.85% state sales tax; Las Vegas-area housing and utility costs have risen sharply.
Best for: Entrepreneurs, entertainers, people leaving higher-tax coastal states.
Climate: Hot, dry desert climate; Las Vegas averages 300+ sunny days.
Income Tax
0%
State Sales
0.00%
Property Tax
1.93%
Why no income tax: Minimal state spending by long-standing policy. The former Interest & Dividends Tax phased out on Jan 1, 2025.
Trade-off: Among the highest effective property taxes in the country — and no sales tax either.
Best for: High earners, Bostonians seeking lower taxes with easy city access.
Climate: Four distinct seasons; cold winters.
Income Tax
0%
State Sales
4.50%
Property Tax
1.24%
Why no income tax: Low population plus agricultural and financial-sector revenues keep the budget lean.
Trade-off: 4.5% state sales tax, moderate property taxes, limited state-funded services vs. coastal states.
Best for: Business owners (favorable LLC / trust statutes), retirees, ranchers.
Climate: Extreme temperature swings, cold winters.
Income Tax
0%
State Sales
7.00%
Property Tax
0.71%
Why no income tax: Eliminated the Hall Tax on investment income in 2021 — now truly zero personal income tax.
Trade-off: 7% state sales tax (highest in the U.S.); local rates push total to 9–10% in Nashville and Memphis.
Best for: Music industry, healthcare workers, retirees (no tax on Social Security).
Climate: Four seasons, mild winters in the Nashville basin.
Income Tax
0%
State Sales
6.25%
Property Tax
1.80%
Why no income tax: Oil and gas severance taxes plus high property taxes fund the state. No income tax written into the constitution.
Trade-off: Property taxes among the nation's highest (1.6–2%+ effective in many counties); 6.25% state sales tax.
Best for: Tech workers (Austin), energy sector, business owners.
Climate: Hot summers, mild winters in most areas; severe storms in some regions.
Income Tax
0%
State Sales
6.50%
Property Tax
0.98%
Why no income tax: Sales tax + B&O (business & occupation) tax fund the state. No personal income tax in the constitution.
Trade-off: 6.5% state sales tax plus local (8–10% in Seattle area). High housing costs.
Best for: Tech workers (Microsoft, Amazon), outdoor enthusiasts.
Climate: Mild but rainy west of the Cascades; dry and hot to the east.
Income Tax
0%
State Sales
4.00%
Property Tax
0.61%
Why no income tax: Mineral extraction taxes (coal, oil, natural gas) fund much of the state budget.
Trade-off: Very low property taxes (~0.6% effective), 4% state sales tax, favorable overall tax burden.
Best for: Ranchers, outdoor enthusiasts, wealthy individuals (favorable estate statutes).
Climate: Cold winters, short summers, high altitude.
Is it worth moving to a no-income-tax state?
It depends on your income and the source-destination pair. High earners ($200k+) leaving California (13.3% top rate) or New York save tens of thousands annually. At lower incomes, the benefits shrink and may be offset by higher housing costs in popular destinations like Florida or Texas.
Do no-income-tax states have worse public services?
Not uniformly. Wyoming and Alaska enjoy strong school funding from mineral revenues. Some others (Tennessee, Nevada) rank lower on education spending per pupil. Public-service quality varies more by county and metro than by state-level tax policy.
Can states tax remote workers who live elsewhere?
If you physically work in a state, that state may tax your income regardless of your employer's HQ. New York's "convenience of the employer" rule can tax remote workers who occasionally visit the office. Nine states (including the no-tax ones here) can't apply such a rule because they have no income tax at all.
What about Washington's capital gains tax?
Washington enacted a 7% capital-gains tax on gains above $250,000 (effective 2023). It applies only to realized long-term gains on certain assets — not wages — so it is not a broad income tax. New Hampshire's Interest & Dividends tax fully phased out on Jan 1, 2025.
Household Income by State
Median income in each no-tax state
Cost of Living by State
BEA RPP — the full picture beyond income tax
Property Tax by State
What you pay on real estate instead
Current Interest Rates
Treasury curve + PMMS + FDIC deposit rates
State Economic Snapshot
Unemployment, CPI, HPI YoY
Self-Employed Tax Calculator
Federal self-employment taxes
The no-income-tax roster is derived, not curated. We call listStateTaxBrackets(), filter to rows where hasIncomeTax === false or topMarginalRate === 0, and pair each state with its listStateSalesTax(), listStateMortgage(), and listStateColIndex()rows so the trade-off columns stay in lockstep with the rest of CalcFi's data.
Savings formula:annual income × 4.5% (assumed effective state rate at a typical origin) = projected yearly savings. 10-year invested total uses a 7% nominal return and a 14.49× 10-year annuity factor (for contributions made at the end of each year). Your real savings depend on your actual starting state's effective rate.
Refresh cadence:Tax Foundation publishes state-bracket tables once per year (January). State sales tax and effective property-tax rates refresh annually. BEA RPP ships once per year with a one-year lag. The visible “Last reviewed” date is MAX(retrievedAt) across all consumed SourcedValues.
Known limits:“No income tax” applies to wage and salary income for residents. Non-wage taxes (Washington's 7% capital-gains tax on gains above $250k, Tennessee's since-repealed Hall Tax, New Hampshire's phased-out Interest & Dividends Tax) can apply narrowly. Always consult a tax professional for your specific situation.
CalcFi does not sell data. If you spot an error, email hello@calcfi.app with the URL and the correct figure.