The 2026 no-income-tax states
| State | How it treats income |
|---|---|
| Alaska | No state income tax on wages, salary, or most income. |
| Florida | No state income tax on wages, salary, or most income. |
| Nevada | No state income tax on wages, salary, or most income. |
| New Hampshire | No tax on wages. Taxes dividends & interest only, at 4%. |
| South Dakota | No state income tax on wages, salary, or most income. |
| Tennessee | No state income tax on wages, salary, or most income. |
| Texas | No state income tax on wages, salary, or most income. |
| Washington | No tax on wages or salary. Applies a 7% capital-gains tax on gains above $250,000. |
| Wyoming | No state income tax on wages, salary, or most income. |
What "no income tax" does and does not mean
No state income tax does not mean no state taxes. These states typically recover revenue through higher sales, property, or excise taxes, so the total tax burden of living in a no-income-tax state depends on your spending and property, not just your paycheck. Two states on the list tax investment income even though they exempt wages: New Hampshire taxes dividends and interest at 4%, and Washington levies a 7% tax on capital gains above $250,000.