Nine US states currently impose no state income tax on wages, which can add thousands of dollars to your annual take-home pay. But there are important trade-offs — higher sales taxes and property taxes often offset the savings. Here's the complete picture for 2026.
No state income tax. Relies on high property and sales taxes.
No state income tax. Popular for retirees and remote workers.
No income tax. Has capital gains tax for high earners since 2022.
No income tax. Revenue funded by gambling and tourism.
No income tax. Low population, mineral wealth funds the state.
No income tax + residents receive an annual Permanent Fund Dividend.
No income tax. Low cost of living and business-friendly environment.
No income tax on wages. Eliminated tax on investment income in 2021.
No tax on wages or salaries — only taxes interest and dividend income (being phased out).
The savings depend heavily on your salary. Here's a comparison of state income tax burden across different income levels:
| Annual Salary | California (9.3%) | New York (~6.25%) | Texas (0%) | Savings vs. CA |
|---|---|---|---|---|
| $50,000 | ~$3,750 | ~$2,500 | $0 | +$3,750/yr |
| $80,000 | ~$6,200 | ~$4,300 | $0 | +$6,200/yr |
| $120,000 | ~$10,100 | ~$7,100 | $0 | +$10,100/yr |
| $200,000 | ~$19,800 | ~$13,500 | $0 | +$19,800/yr |
| State | Sales Tax Rate | Avg Property Tax Rate |
|---|---|---|
| Texas | 6.25% (up to 8.25% local) | 1.60% (one of the highest) |
| Florida | 6.0% (up to 7.5% local) | 0.83% |
| Washington | 6.5% (up to 10.4% local) | 0.93% |
| Nevada | 6.85% (up to 8.375%) | 0.53% |
| Tennessee | 7.0% (one of highest base rates) | 0.56% |
| New Hampshire | 0% (no sales tax!) | 1.86% (very high) |
Texas, for example, offsets its zero income tax with one of the highest property tax rates in the country. Homeowners earning $80,000 with a $300,000 home pay about $4,800/year in property taxes in Texas versus roughly $2,400 in a lower-property-tax state.
| State | Top Marginal Rate |
|---|---|
| California | 13.3% |
| Hawaii | 11.0% |
| New Jersey | 10.75% |
| Oregon | 9.9% |
| Minnesota | 9.85% |
| Washington DC | 10.75% |
Use our free calculator to see exactly how much you'd take home in any of the 50 states at your salary level.
Try the State Tax Calculator →For high earners, the math often strongly favors no-tax states — especially compared to California or New York. A $150,000 earner moving from California to Texas saves roughly $12,000–$15,000 annually in state income taxes. However, you must account for cost of living, property taxes, housing costs, and lifestyle factors.
Generally yes — if you are domiciled in a no-tax state and work from there. However, some states (including California and New York) have aggressive residency rules and may attempt to tax income earned from remote workers who previously worked in that state. Consult a tax professional if relocating specifically for tax purposes.
Washington has no traditional income tax on wages. However, in 2022 Washington enacted a 7% capital gains tax on net long-term capital gains above $262,000. This does not affect regular paycheck income (wages and salaries).
For official state tax rate information, visit the Tax Foundation's state income tax comparison, a non-partisan tax policy research organization.