There are nine states with no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. If you live and work in one of them, your paycheck is only reduced by federal income tax, Social Security and Medicare, plus small state payroll contributions in Alaska and Washington. On a $75,000 salary, that means about $61,593 of take-home pay per year in most of them, versus $57,843 in California or $56,006 in Oregon.
The 9 states with no income tax on wages
| State | Take-home on $75,000 | Per month | Total tax rate |
|---|---|---|---|
| Alaska | $61,322 | $5,110 | 18.2% |
| Florida | $61,593 | $5,133 | 17.9% |
| Nevada | $61,593 | $5,133 | 17.9% |
| New Hampshire | $61,593 | $5,133 | 17.9% |
| South Dakota | $61,593 | $5,133 | 17.9% |
| Tennessee | $61,593 | $5,133 | 17.9% |
| Texas | $61,593 | $5,133 | 17.9% |
| Washington | $60,552 | $5,046 | 19.3% |
| Wyoming | $61,593 | $5,133 | 17.9% |
Single filer, 2026 tax year, standard deduction, no pre-tax contributions. Alaska and Washington are slightly lower because of state payroll contributions: Alaska withholds 0.5% of wages for unemployment insurance, and Washington funds two programs (see below).
How much more you keep compared with other states
The gap grows with your income, because most state income taxes are progressive. On the same $75,000 salary:
- California: $57,843 take-home, about $3,900 less per year than Texas. California also withholds 1.3% of wages for state disability insurance.
- New York: $57,849 take-home, about $3,740 less.
- Oregon: $56,006 take-home, about $6,380 less. Oregon has one of the highest income tax rates on middle incomes.
Want your own number? Use the US paycheck calculator and switch between states.
A closer look at each state
Texas and Florida
The two largest no-tax states. Neither taxes wages, investment income or retirement income at the state level. This is a big reason both keep attracting remote workers and retirees.
Washington
Washington does not tax wages, but employees pay into two state programs: paid family and medical leave, and WA Cares, a long-term care program. Together they take a little over 1% of wages. Washington also taxes large long-term capital gains.
New Hampshire
New Hampshire never taxed wages, and it has now fully phased out its old tax on interest and dividends. It is one of the few states with neither a broad income tax nor a general sales tax.
Tennessee
Like New Hampshire, Tennessee used to tax investment income and repealed that tax. Wages were never taxed.
Alaska, Nevada, South Dakota and Wyoming
These states fund their budgets with other sources, such as oil and mineral revenue (Alaska, Wyoming), gaming and tourism (Nevada) or sales taxes (South Dakota).
The trade-offs: no income tax is not the same as low taxes
States still need revenue, so a missing income tax is usually offset elsewhere:
- Sales taxes can be higher, which weighs more on people who spend most of what they earn.
- Property taxes are high in some of these states, which matters if you buy a home.
- Cost of living varies widely: a no-tax state with expensive housing can cost you more overall.
The fair comparison is your full budget, not only your paycheck. Start with take-home pay, then compare rent or mortgage costs in the cities you are considering.
Remote workers: which state taxes you?
In general, you pay state income tax where you live and work. If you move to a no-tax state and work remotely for an employer in another state, update your address with your employer so withholding stops. A few states have special rules for remote employees of in-state companies, so check before you move.
Bottom line
Living in one of the nine no-income-tax states adds a few thousand dollars a year to a typical paycheck, and more as your income grows. Compare that gain with housing and sales taxes before deciding. For a quick look at a specific salary, open $70,000 after tax in Texas or the salary after tax calculator.
Moving to one of the states with no income tax: a practical checklist
The table above shows the yearly gain, but a move is easier to judge month by month. On $75,000, a worker in Texas keeps about $3,900 more per year than in California, roughly $325 a month, and about $6,380 more than in Oregon, roughly $530 a month. In Washington, the payroll programs reduce the gain by about $1,040 a year compared with the other states with no income tax.
Before you move
- Compare housing first. A few hundred dollars of tax savings a month can disappear if rent in your new city is higher.
- Check sales and property taxes in the county and city, not only at the state level. Some states with no income tax rely heavily on one or both.
- Look at your salary, not just the tax. If a move means a lower salary, compare take-home pay after the change.
After you move
- Update your address with your employer so state withholding stops on your next paycheck.
- Check your first pay stub. In most states with no income tax, you should only see federal income tax, Social Security and Medicare. In Washington, you will also see the paid leave and WA Cares deductions.
- File a part-year return in your old state for the months you lived there, if that state taxes income.
Federal withholding still applies
Moving to one of the states with no income tax does not change your federal tax. If your pay rises or your situation changes, review your federal withholding with the IRS Tax Withholding Estimator. For state rules on remote work or part-year residency, check the tax agency of the state you are leaving, or ask a tax professional if your case is complex.
Frequently asked questions
How many states have no income tax?
Nine: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wages.
Do you still pay federal taxes in a no-income-tax state?
Yes. Federal income tax, Social Security and Medicare apply in every state.
Which no-income-tax state has payroll deductions?
Washington withholds contributions for paid family and medical leave and for its WA Cares long-term care program.
Is it cheaper to live in a state with no income tax?
Not always. These states often rely more on sales, property or excise taxes, so the total tax burden depends on your spending and housing.
Estimates for information only, not tax advice.
