No Income Tax States: Take-Home Pay at Every Salary Level (2026)

Nine U.S. states charge zero income tax on wages. For a W-2 employee, that means the same salary produces an identical paycheck in all nine states — your only deductions are federal income tax and FICA (Social Security + Medicare).

But the nine states differ significantly in other taxes, cost of living, and what you get in return.

The 9 No-Income-Tax States (2026)

State	Notes
Alaska	No income tax, no sales tax; highest cost of living outside contiguous US
Florida	No income tax; 6% sales tax; popular retirement/relocation destination
Nevada	No income tax; 6.85% sales tax; strong tourism economy
New Hampshire	No wage income tax; phased out interest/dividend tax fully as of 2025
South Dakota	No income tax; 4.5% sales tax; low cost of living
Tennessee	No income tax; ~9.5% combined sales tax (highest in US)
Texas	No income tax; 6.25% sales tax; high property taxes (~1.7%)
Washington	No income tax on wages; 6.5% sales tax; capital gains tax above $270k
Wyoming	No income tax; 4% sales tax; very low cost of living

Take-Home Pay in No-Income-Tax States (All Identical for W-2)

Since the only deductions are federal, all 9 states produce identical paycheck math for W-2 employees:

Salary	Federal Taxes	Annual Take-Home	Monthly Take-Home
$40,000	$8,294	$31,706	$2,642
$50,000	$9,211	$40,789	$3,399
$60,000	$10,561	$49,439	$4,120
$75,000	$13,852	$61,148	$5,096
$100,000	$25,061	$74,939	$6,245
$125,000	$31,561	$93,439	$7,787
$150,000	$38,061	$111,939	$9,328

Single filer, standard deduction, 2026 federal brackets.

How Much More Do You Keep vs. High-Tax States?

Salary	No-Tax State	California	New York	Illinois
$50,000	$40,789	$36,514	$38,192	$39,289
$75,000	$61,148	$55,062	$56,989	$57,435
$100,000	$74,939	$65,099	$69,098	$71,289
$150,000	$111,939	$91,404	$97,104	$104,614

At $100,000, living in a no-tax state saves:

• $9,840/yr vs. California
• $5,841/yr vs. New York
• $3,650/yr vs. Illinois

State-by-State Profile: What You Give Up or Gain

Alaska

Alaska is the only state with neither income tax nor statewide sales tax. Residents also receive the annual Permanent Fund Dividend — a share of oil royalty revenues ($1,312 in 2023). The trade-off: extreme cost of living in remote areas, cold climate, and limited job markets outside Anchorage/Fairbanks.

Florida

Florida pairs no income tax with a moderate 6% sales tax and relatively lower property taxes (~0.9%) than Texas. It has no estate tax. Top choice for retirees due to warm climate and tax treatment of retirement income.

Nevada

Nevada offsets no income tax with a 6.85% sales tax and significant gaming/tourism revenue. Las Vegas metro has seen rapid population and housing cost growth. Property taxes are low (~0.5% effective rate).

New Hampshire

The only no-income-tax state in New England. No sales tax either — a rarity. High property taxes (~1.9% effective rate) partially offset the income tax benefit. Strong tech and finance presence in the Manchester–Portsmouth corridor.

South Dakota

Very low cost of living, no income tax, moderate 4.5% sales tax. Popular for trusts and business formation (no corporate income tax). Limited job market but attractive for remote workers.

Tennessee

No income tax on wages, but has the highest combined sales tax rate in the US (~9.5% average). Strong manufacturing and logistics economy (Nashville corridor). Low housing costs outside Nashville’s urban core.

Texas

The most economically significant no-income-tax state. Large labor market, no income tax, but highest property taxes among the 9 (~1.7% effective rate). Property tax exposure matters most for homeowners; renters capture the full income tax benefit.

Washington

No income tax on wages. High sales tax (6.5% + local). Capital gains tax of 7% on gains above $270,000 (does not affect most wage earners). Tech economy concentration in Seattle drives high wages but also high housing costs.

Wyoming

One of the lowest overall tax burdens in the country. No income tax, 4% sales tax, low property taxes, low cost of living. Thin job market; most suitable for remote workers or those in energy/agriculture.

Beyond Income Tax: Total Tax Burden

No-income-tax does not mean no-tax. States compensate through:

State	Sales Tax (Avg Combined)	Effective Property Tax Rate
Alaska	1.8% (local only)	1.0%
Florida	7.0%	0.9%
Nevada	8.2%	0.5%
New Hampshire	0%	1.9%
South Dakota	6.4%	1.1%
Tennessee	9.5%	0.6%
Texas	8.2%	1.7%
Washington	9.4%	0.8%
Wyoming	5.4%	0.6%

For a $75,000 earner who owns a $350,000 home in Texas, property taxes add ~$5,950/yr — partially offsetting the income tax savings vs. states with income tax but lower property taxes.

Who Benefits Most

• High earners: Income tax savings scale with income; property/sales taxes don’t
• Renters: Capture the full income tax benefit without property tax exposure
• Retirees: No state tax on retirement account distributions or Social Security
• Remote workers: Full flexibility to choose the most favorable state

Calculate Your Take-Home

All 9 no-income-tax states produce identical W-2 paychecks. Use the Paycheck Calculator to see your exact take-home, or use the state comparison tool to compare directly with your current state.

See Also

• Texas vs California paycheck
• Florida vs California paycheck
• Best states for high earners
• State income tax rates 2026