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 0.60%.
- New Hampshire ranks last at 2.18% — the highest among all states.
- The top 5 states are Nevada, Wyoming, Tennessee, Florida, Washington.
- All data is sourced from verified government databases and updated for 2026.
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 | 0.60% | 6.85% | 104.2 | $66,274 | Paycheck Calculator |
| 2 | Wyoming | 0.61% | 4.00% | 95.2 | $65,003 | Paycheck Calculator |
| 3 | Tennessee | 0.71% | 7.00% | 89.7 | $56,071 | Paycheck Calculator |
| 4 | Florida | 0.89% | 6.00% | 102.8 | $67,917 | Paycheck Calculator |
| 5 | Washington | 1.03% | 6.50% | 110.7 | $82,228 | Paycheck Calculator |
| 6 | Alaska | 1.19% | 0.00% | 125.9 | $77,790 | Paycheck Calculator |
| 7 | South Dakota | 1.31% | 4.20% | 92.6 | $63,920 | Paycheck Calculator |
| 8 | Texas | 1.80% | 6.25% | 93.9 | $67,321 | Paycheck Calculator |
| 9 | New Hampshire | 2.18% | 0.00% | 112.6 | $83,449 | Paycheck Calculator |
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.
Frequently Asked Questions
Which states have no income tax?
Alaska, Florida, Nevada, New Hampshire (interest/dividends only), South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax on earned income.
Do no-income-tax states have higher property taxes?
Often, yes. Texas (1.60%), New Hampshire (1.86%), and Alaska 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.