The 9 States With No Income Tax on Wages in 2026
Nine states do not tax wage income. If you live in one, your paycheck is reduced only by federal income tax, Social Security and Medicare.
The nine states
| State | State sales tax | Average combined state and local sales tax |
|---|---|---|
| Alaska | 0% | 1.82% |
| Florida | 6% | 6.98% |
| Nevada | 6.85% | 8.24% |
| New Hampshire | 0% | 0% |
| South Dakota | 4.2% | 6.11% |
| Tennessee | 7% | 9.61% |
| Texas | 6.25% | 8.2% |
| Washington | 6.5% | 9.51% |
| Wyoming | 4% | 5.56% |
Two of them come with a footnote. New Hampshire does not tax wages. Washington taxes certain long-term capital gains but not wages.
How much does it save?
For a single filer earning $75,000 in 2026, here is the state income tax in the five highest-tax states at that salary, compared with zero in the nine above:
| State | State income tax on $75,000 |
|---|---|
| Oregon | $5,733 |
| Hawaii | $4,170 |
| Maine | $3,881 |
| Delaware | $3,609 |
| Minnesota | $3,577 |
These figures use each state's standard deduction and personal exemption or credit. They leave out local income taxes and the deduction for federal income tax that a few states, including Oregon, allow, so actual tax there is somewhat lower.
No income tax does not mean low tax
States still need revenue, and those without an income tax lean harder on other sources:
- Sales tax. Tennessee and Washington have some of the highest combined sales tax rates in the country, as the first table shows.
- Property tax. Texas and New Hampshire are known for high property taxes.
- Other revenue. Alaska relies on oil revenue, Nevada on tourism and gaming, and Wyoming on mineral extraction.
Whether you come out ahead depends on how much you earn, how much you spend and whether you own property. Higher earners usually benefit most from having no income tax, because sales taxes take a larger share of a smaller income.
Sources
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026
- Tax Foundation, State and Local Sales Tax Rates, 2026
This article is general information, not tax, legal or financial advice. See our disclaimer.