Guide 9 States

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.

By StateCalc Methodology Disclosed Ranked by Property Tax Editorially Reviewed Updated
Key Takeaways
  • 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

1
Nevada
Lowest Property Tax
Property Tax 0.50%
Sales Tax 6.85%
COL Index 100.7
Median Income $81,134
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2
Tennessee
Lowest Property Tax
Property Tax 0.52%
Sales Tax 7.00%
COL Index 88.9
Median Income $71,997
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3
Wyoming
Lowest Property Tax
Property Tax 0.53%
Sales Tax 4.00%
COL Index 93.7
Median Income $75,532
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All 9 States Ranked

Lowest to highest by property tax

Scroll horizontally to see all columns
#StateProperty TaxSales TaxCOL IndexMedian Income Calculator
1 Nevada
0.50%
6.85%
100.7
$81,134
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2 Tennessee
0.52%
7.00%
88.9
$71,997
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3 Wyoming
0.53%
4.00%
93.7
$75,532
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4 Washington
0.75%
6.50%
114.6
$99,389
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5 Florida
0.78%
6.00%
100.7
$77,735
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6 Alaska
0.94%
0.00%
129
$95,665
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7 South Dakota
1.00%
4.20%
94.1
$76,881
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8 Texas
1.40%
6.25%
90.7
$79,721
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9 New Hampshire
1.50%
0.00%
110.1
$99,782
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Methodology

How we collected and ranked the data

States are filtered by incomeTaxType === "none". Comparison includes property tax rates, sales tax, cost of living, and median income from Tax Foundation, Census Bureau, and BLS data.

Government data sources Updated annually Editorially reviewed

Compare Two States

Compare taxes, housing, cost of living, and more between any two states.

View all 107 state comparisons

Frequently 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 (1.40%), New Hampshire (1.50%), and Alaska (0.94%) rely 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.