The nine states
The Tax Foundation's 2026 survey of state income taxes lists eight states that levy no individual income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Washington is the ninth state with no tax on wages; it taxes only long-term capital gains. The table adds the main tax each state's own revenue department lists instead.
| State | Tax on wages | What else is notable |
|---|---|---|
| Alaska | None | No state sales tax; some local governments levy their own |
| Florida | None | 6% state sales tax plus county surtax; no inheritance or gift tax |
| Nevada | None | 6.85% base state sales tax; local add-ons |
| New Hampshire | None | Interest and dividends tax repealed from 2025; 8.5% meals and rentals tax |
| South Dakota | None | 4.2% state sales tax, set to return to 4.5% after June 30, 2027 |
| Tennessee | None | Hall tax on interest and dividends repealed from 2021; 7% state sales tax |
| Texas | None | 6.25% state sales tax, up to 8.25% with local tax |
| Washington | None until 2028 | 7% capital gains tax, 9.9% above $1 million; 6.5% state sales tax |
| Wyoming | None | 4% state sales tax, generally 4% to 8% with local tax |
Sales tax rates in the table are the state rates. Cities and counties add their own in most of these states, so the rate at a register is often higher. The sales tax calculator works with any combined rate, and how to calculate sales tax shows the arithmetic.
A $75,000 salary with the state line at zero
Federal taxes do not depend on the state. For a single filer with a $75,000 salary in 2026, taking the standard deduction and nothing else, the year looks the same in all nine states:
| Line | Per year | Per month |
|---|---|---|
| Gross salary | $75,000.00 | $6,250.00 |
| Federal income tax (single, $16,100 standard deduction) | −$7,670.00 | −$639.17 |
| Social Security, 6.2% | −$4,650.00 | −$387.50 |
| Medicare, 1.45% | −$1,087.50 | −$90.63 |
| State income tax | $0.00 | $0.00 |
| Take-home pay | $61,592.50 | $5,132.71 |
Taxable income is $75,000 minus the $16,100 standard deduction, $58,900, taxed at 10, 12 and 22 percent in layers. Social Security and Medicare apply to the full salary. The take-home figure is 82.1 percent of gross. Anywhere else, a state income tax would come out of that $61,593. The paycheck calculator adds the state for any of the 50 states, plus state payroll programs where they exist, and the income tax calculator shows the federal layers. To compare offers paid hourly, weekly or yearly, the salary converter lines them up.
What each state does instead
- Alaska. The Department of Revenue says the state has no individual income tax, so employers withhold none, and no state sales and use tax either. Some local governments levy their own sales taxes.
- Florida. The Department of Revenue's guide for new residents says Florida imposes no personal income tax, inheritance tax, gift tax or tax on intangible personal property. Retail sales carry a 6% state sales tax plus any county discretionary surtax, and property tax is assessed by the county, with a homestead exemption of up to $50,000 on a primary residence.
- Nevada. The Department of Taxation gives a base state sales tax rate of 6.85%, with local additions on top.
- New Hampshire. The state never taxed W-2 wages. Its tax on interest and dividends fell from 5% to 4% and then 3%, and was repealed for taxable periods beginning after December 31, 2024. The department's list of taxes it administers has no general sales tax; a meals and rentals tax of 8.5% applies to restaurant meals, hotel rooms and car rentals.
- South Dakota. The state sales tax is 4.2%. The Department of Revenue notes that the 2023 law that cut it from 4.5% included a sunset that repeals the cut effective June 30, 2027.
- Tennessee. The Hall income tax on interest and dividends was phased out and fully repealed from January 1, 2021. The state sales tax is 7%, 4% on food and food ingredients, and local rates can add up to 2.75%.
- Texas. The Comptroller's state sales and use tax is 6.25%; cities, counties and other local bodies can add up to 2%, for a combined maximum of 8.25%.
- Washington. No tax on wages today. A 7% tax applies to long-term capital gains above a standard deduction of $278,000 for 2025, adjusted each year, with an extra 2.9% on gains above $1 million, and real estate and certain retirement accounts are exempt. The state sales tax is 6.5%. The Department of Revenue says a new 9.9% income tax on adjusted gross income above $1 million starts January 1, 2028, with first returns due in 2029; it had not posted the 2026 capital gains deduction when this page was checked.
- Wyoming. The Excise Tax Division collects a mandatory statewide 4% sales tax, and local additions bring most combined rates to between 4% and 8%.
Sales tax on a year of spending
Without an income tax, the state sales tax is the tax most residents notice. On $40,000 of taxable purchases in a year, the state share alone comes to the amounts below. Local sales taxes come on top in most of these states, and what counts as taxable differs: Tennessee, for example, taxes food and food ingredients at a reduced 4% state rate.
| State | State sales tax rate | State tax on $40,000 |
|---|---|---|
| Alaska | None | $0 |
| New Hampshire | None | $0 |
| Wyoming | 4% | $1,600 |
| South Dakota | 4.2% | $1,680 |
| Florida | 6% | $2,400 |
| Texas | 6.25% | $2,500 |
| Washington | 6.5% | $2,600 |
| Nevada | 6.85% | $2,740 |
| Tennessee | 7% | $2,800 |
Washington's capital gains tax, worked out
Washington taxes no wages but does tax long-term capital gains. Using the 2025 rules, the $278,000 standard deduction comes off first, 7% applies to the taxable gain, and an extra 2.9% applies to taxable gains above $1 million. Gains on real estate and on assets in certain retirement accounts are exempt.
| Long-term gain | Taxable after deduction | Washington tax |
|---|---|---|
| $400,000 | $122,000 | $8,540 |
| $1,500,000 | $1,222,000 | $91,978 |
The return is due on the same day as the federal income tax return. A salary of any size adds nothing here; the tax reaches only the sale or exchange of long-term capital assets.
If you are weighing a move
The income tax line is the easiest to compare and often not the biggest. A household that spends $40,000 a year on taxable goods pays $1,600 at a 4% sales tax and $2,800 at 7%, before local additions, and property tax on a home can outweigh both. Run the comparison with your own numbers: the paycheck for each state, the sales tax on a year of spending, and the property tax on the home you would buy. Check for scheduled changes too. South Dakota's sales tax cut has an end date in the law, and Washington's new income tax for incomes above $1 million begins in 2028.
Frequently asked questions
Which states have no state income tax in 2026?
Eight states levy no individual income tax at all, according to the Tax Foundation's 2026 survey: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Washington taxes no wages or ordinary income but does tax long-term capital gains, which makes nine states with no tax on wages.
Does New Hampshire still tax interest and dividends?
No. The New Hampshire Department of Revenue Administration says the Interest and Dividends Tax is repealed for taxable periods beginning after December 31, 2024. The last rate, for periods ending on or after December 31, 2024, was 3%. The state has never taxed W-2 wages.
Is Washington adding an income tax?
Washington's Department of Revenue says the state does not currently have an individual income tax, but that a 9.9% income tax on individuals and joint filers with adjusted gross income above $1 million begins January 1, 2028, under Senate Bill 6346 from the 2026 session. First returns are due in April 2029.
Do I still pay federal tax and FICA in these states?
Yes. Federal income tax, Social Security and Medicare are the same in every state. On a $75,000 salary in 2026, a single filer pays about $13,408 of the three combined, and the state income tax line is zero in all nine states.
Are states without an income tax cheaper overall?
Not automatically. Each of them still collects other taxes, such as the state sales taxes from 4% to 7% in the table on this page, plus local sales and property taxes, and the mix differs from state to state. Compare the taxes you would actually pay on your own spending and home, not just the income tax line.
Sources
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026, published February 17, 2026 (eight states levy no individual income tax; New Hampshire repealed its interest and dividends tax as of 2025; Washington taxes capital gains income only)
- Alaska Department of Revenue, Tax Division: Individual income tax (the state does not have an individual income tax, so no state income tax withholding is required)
- Alaska Department of Revenue, Tax Division: Sales and use tax (no state sales and use tax; some local jurisdictions impose local sales taxes)
- Florida Department of Revenue: Tax Information for New Residents, GT-800025 R. 08/25 (6% state sales tax plus discretionary sales surtax; homestead exemption up to $50,000; no personal income, inheritance, gift or intangibles tax) (PDF)
- Nevada Department of Taxation: Sales and use tax (base state rate 6.85%; local jurisdictions can add more)
- New Hampshire Department of Revenue Administration: Interest and Dividends Tax (no tax on W-2 wages; 5%, 4% and 3% rates; repealed for taxable periods beginning after December 31, 2024)
- New Hampshire Department of Revenue Administration: Meals and Rooms (Rentals) Tax (8.5% since October 1, 2021) and the list of taxes the department administers
- South Dakota Department of Revenue: Sales and use tax (state rate 4.2%)
- South Dakota Department of Revenue: 2023 legislative updates (HB1137 cut the rate from 4.5% to 4.2% from July 1, 2023, with a sunset repealing the cut effective June 30, 2027)
- Tennessee Department of Revenue: HIT-3, Hall income tax fully repealed beginning January 1, 2021
- Tennessee Department of Revenue: SUT-13, sales and use tax rates (7% state rate, 4% on food and food ingredients, local rates up to 2.75%)
- Texas Comptroller: Sales and use tax (6.25% state rate; local taxes up to 2% for a maximum combined 8.25%)
- Washington Department of Revenue: Income tax (no individual income tax currently; 9.9% tax on AGI above $1 million from January 1, 2028 under SB 6346)
- Washington Department of Revenue: Capital gains tax (7% on long-term capital gains; standard deduction $278,000 for 2025, adjusted for inflation each year; real estate and certain retirement accounts exempt; returns due the same day as the federal return)
- Washington Department of Revenue: New tiered rates for the capital gains tax (an additional 2.9% on gains above $1 million, first on 2025 returns)
- Washington Department of Revenue: Retail sales tax (state rate 6.5%)
- Wyoming Excise Tax Division: Excise tax FAQs (mandatory statewide 4% rate; combined rates generally 4% to 8%)
- IRS: Tax inflation adjustments for tax year 2026 (standard deduction $16,100 for single filers; bracket thresholds)
- IRS Topic 751: Social Security and Medicare withholding rates (6.2% and 1.45% for the employee; 2026 wage base $184,500)
General information based on the sources above, not tax, legal or financial advice.