States With No Income Tax
Nine U.S. states impose no state income tax on earned income, potentially saving residents thousands of dollars each year. However, these states often offset the lack of income tax with higher property taxes, sales taxes, or other fees. Use the comparison table and linked calculators below to understand the full picture.
- Nevada ranks #1 with the lowest property tax at 0.50%.
- New Hampshire ranks last at 1.50% — the highest among all states.
- The top 5 states are Nevada, Tennessee, Wyoming, Washington, Florida.
- The ranking basis, source limitations, and calculation method are documented in the Methodology section below.
Top 3 States
All 9 States Ranked
Lowest to highest by property tax
| # | State | Property Tax | Sales Tax | COL Index | Median Income | Calculator |
|---|---|---|---|---|---|---|
| 1 | Nevada | 0.50% | 6.85% | 105.4 | $81,134 | Paycheck Calculator |
| 2 | Tennessee | 0.52% | 7.00% | 89.7 | $71,997 | Paycheck Calculator |
| 3 | Wyoming | 0.53% | 4.00% | 94.4 | $75,532 | Paycheck Calculator |
| 4 | Washington | 0.75% | 6.50% | 115.1 | $99,389 | Paycheck Calculator |
| 5 | Florida | 0.78% | 6.00% | 100.8 | $77,735 | Paycheck Calculator |
| 6 | Alaska | 0.94% | 0.00% | 124.5 | $95,665 | Paycheck Calculator |
| 7 | South Dakota | 1.00% | 4.20% | 93.5 | $76,881 | Paycheck Calculator |
| 8 | Texas | 1.40% | 6.25% | 90.8 | $79,721 | Paycheck Calculator |
| 9 | New Hampshire | 1.50% | 0.00% | 108.5 | $99,782 | Paycheck Calculator |
Methodology
How we collected and ranked the data
The list covers every state whose own tax data in this site records no broad-based personal income tax on wages. Comparison includes property tax rates and sales tax (this site's state tax data), cost of living (the C2ER Cost of Living Index (via MERIC), Q2 2026) and median household income (Census Bureau, ACS 2024).
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View all 107 state comparisonsFrequently Asked Questions
Which states have no income tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax on earned income. New Hampshire also belongs on this list without qualification: its interest-and-dividends tax was repealed in full effective January 1, 2025 (RSA chapter 77, repealed by 2021, 91:189, II), so it no longer taxes investment income either.
Do no-income-tax states have higher property taxes?
Often, yes. Texas (1.4%), New Hampshire (1.5%), and Alaska (0.94%) (effective property tax rates) lean more heavily on property tax or sales tax to fund state government.
Is it always cheaper to live in a no-income-tax state?
Not necessarily. States like Washington and New Hampshire have above-average overall costs. Texas has low income tax but higher property taxes. Always compare total tax burden and cost of living.