For anyone weighing a move in the United States, a state with no income tax can sound like an instant raise. Nine US states currently levy no tax on earned income, letting residents keep their full paycheck from wages, salaries, and often retirement withdrawals.
The catch is that these states still need revenue, so they lean on property and sales taxes instead. That means the smart question is not which states skip income tax, but which ones deliver the lowest total tax burden once every levy is counted. Below we rank all nine no-income-tax states for 2026 from lightest to heaviest overall burden.
States With No Income Tax at a Glance
| Rank | State | Total Tax Burden | Property Tax Rate | Avg Sales Tax |
|---|---|---|---|---|
| 1 | Alaska | ~5.2% | 1.19% | 1.76% |
| 2 | New Hampshire | ~6.8% | 2.05% | 0% |
| 3 | Wyoming | ~7.5% | 0.56% | 5.36% |
| 4 | Tennessee | ~7.5% | 0.67% | 9.55% |
| 5 | South Dakota | ~7.6% | 1.22% | 6.40% |
| 6 | Florida | ~7.8% | 0.91% | 7.02% |
| 7 | Nevada | ~8.2% | 0.55% | 8.23% |
| 8 | Texas | ~8.6% | 1.60% | 8.25% |
| 9 | Washington | ~8.9% | 0.98% | 9.29% |
The 9 States With No Income Tax, Ranked by Total Tax Burden
1. Alaska: The Lowest Total Tax Burden in the Nation
Total Tax Burden: ~5.2% | Property Tax: 1.19% | Sales Tax: 1.76% | Best For: Keeping the most of your income
Alaska carries the lowest total tax burden in the country at roughly 5.2%, with no state income tax and no statewide sales tax. Only local sales taxes apply, averaging under 2%, which keeps everyday costs light on the tax side.
Alaska even pays residents through its Permanent Fund Dividend, distributing oil revenue as an annual check. The trade-offs are a high cost of living for goods and a remote, extreme climate, so it suits those drawn to its unique lifestyle.
2. New Hampshire: No Income Tax and No Sales Tax
Total Tax Burden: ~6.8% | Property Tax: 2.05% | Sales Tax: 0% | Best For: Shoppers and earners alike
New Hampshire is unusual in charging neither an income tax nor a sales tax, and as of January 2025 it fully eliminated its old tax on interest and dividends. That makes wages, investment income, and purchases all state-tax-free.
The revenue comes from property taxes, which at 2.05% are among the highest in the nation. For homeowners the bill can be steep, but for renters and shoppers, New Hampshire is remarkably tax-friendly.
3. Wyoming: Low Property Tax and Wide-Open Space
Total Tax Burden: ~7.5% | Property Tax: 0.56% | Sales Tax: 5.36% | Best For: Retirees and landowners
Wyoming combines no income tax with one of the lowest property tax rates in the country at 0.56%, a rare pairing that favors homeowners and retirees. Its modest 5.36% average sales tax keeps overall costs down.
The state funds much of its budget through mineral and energy revenue, easing the burden on residents. Wide-open landscapes and outdoor access add to the appeal for those who value space and low taxes together.
4. Tennessee: Sunbelt Appeal With a Sales Tax Catch
Total Tax Burden: ~7.5% | Property Tax: 0.67% | Sales Tax: 9.55% | Best For: Homeowners who spend modestly
Tennessee offers no income tax and a low property tax rate of 0.67%, making it attractive for homeowners across its growing cities. Nashville, Knoxville, and Chattanooga anchor a strong Sunbelt economy.
The offset is the highest average sales tax in the country at 9.55%, so heavy spenders feel the pinch. Its appeal features prominently in our guide to the best places to retire in the US.
5. South Dakota: A Retiree Tax Haven
Total Tax Burden: ~7.6% | Property Tax: 1.22% | Sales Tax: 6.40% | Best For: Protecting income and estates
South Dakota levies no income tax, no inheritance tax, and no estate tax, making it a favorite for retirees focused on preserving wealth. Its moderate 6.40% average sales tax keeps daily costs reasonable.
The state’s business-friendly rules and low overall burden draw both retirees and entrepreneurs. Property taxes are middling at 1.22%, but the absence of income and estate taxes more than balances the equation.
6. Florida: The Classic No-Income-Tax Destination
Total Tax Burden: ~7.8% | Property Tax: 0.91% | Sales Tax: 7.02% | Best For: Retirees and warm-weather seekers
Florida is the best-known no-income-tax state, combining that perk with no estate tax and moderate property taxes near 0.91%. Warm weather and a large retiree community make it a perennial relocation magnet.
The watch-out for 2026 is soaring home insurance rather than taxes, with premiums well above the national average. Still, for tax purposes Florida remains one of the most welcoming states in the country.
7. Nevada: Gaming Revenue Keeps Taxes Low
Total Tax Burden: ~8.2% | Property Tax: 0.55% | Sales Tax: 8.23% | Best For: Homeowners wanting low property tax
Nevada charges no income tax and boasts one of the lowest property tax rates in the nation at 0.55%, helped by revenue from its casino and tourism industries. That makes homeownership relatively cheap on the tax side.
The offset is a higher sales tax averaging 8.23%, which spreads the burden to everyday purchases. Las Vegas and Reno offer jobs and entertainment, adding lifestyle draws to the tax benefits.
8. Texas: Big Jobs, High Property Taxes
Total Tax Burden: ~8.6% | Property Tax: 1.60% | Sales Tax: 8.25% | Best For: Workers chasing job growth
Texas pairs no income tax with the nation’s strongest job growth, but it funds government through high property taxes near 1.60%. A $400,000 home can carry a property tax bill exceeding $6,400 a year.
That means middle-income Texans sometimes pay more total tax than they would in states with an income tax. We break down the local picture further in our guide to the best places to live in Texas.
9. Washington: Tech Jobs With a Higher Burden
Total Tax Burden: ~8.9% | Property Tax: 0.98% | Sales Tax: 9.29% | Best For: High earners in tech
Washington has no tax on wage income, which benefits its large technology workforce, but it carries the highest total tax burden on this list at roughly 8.9%. A steep average sales tax of 9.29% is the main driver.
The state also added a capital gains tax on high earners in recent years, narrowing its appeal for investors. For salaried tech workers in Seattle, though, the no-wage-tax structure still delivers meaningful savings.
How States With No Income Tax Make Up the Revenue
No state runs on goodwill, so income-tax-free states shift the load to property taxes, sales taxes, or resource revenue. New Hampshire leans hard on property taxes, Tennessee and Washington on sales taxes, and Alaska and Wyoming on energy and mineral income. Wyoming even tops the Tax Foundation’s 2026 State Tax Competitiveness Index, showing that a low overall tax structure, not just the lack of income tax, drives real savings.
This is why the headline of no income tax can mislead. A high earner benefits most, while a big spender or a homeowner in a high-property-tax state may see little gain, a nuance detailed in the Tax Foundation’s 2026 state income tax data.
Does Moving to a No-Income-Tax State Actually Save Money?
It depends entirely on your income profile and spending. Retirees and high earners with modest spending tend to win big, since they skip income tax while keeping property and sales taxes low, especially in Wyoming or South Dakota.
Middle-income families in Texas or Washington may save less than expected once high property or sales taxes are counted. Comparing total burden matters, much as it does when weighing the cheapest states to live in against your budget.
How We Ranked the No-Income-Tax States
This ranking orders the nine no-income-tax states by their estimated total tax burden, which combines property, sales, and other state and local taxes as a share of income. A lower burden means residents keep more of their money overall.
We pair each state’s burden with its property tax rate and average combined sales tax so the trade-offs are visible at a glance. No income tax is only the starting point, not the whole story.
How to Decide If a No-Income-Tax State Fits You
Start with your income and spending habits, because those determine which taxes hit you hardest. High earners and retirees favor low-burden states like Alaska, Wyoming, and South Dakota, while big spenders should avoid high-sales-tax states like Tennessee and Washington.
Then factor in home prices and insurance, not just tax rates, since a cheap tax bill can be offset by expensive housing. Weighing the full cost of living gives a truer answer than the no-income-tax label alone, the same approach used in our best cities for young professionals guide.
Frequently Asked Questions
Which states have no income tax in 2026?
The nine states with no income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire also eliminated its tax on interest and dividends in 2025.
Which no-income-tax state has the lowest overall taxes?
Alaska has the lowest total tax burden at roughly 5.2%, thanks to no income tax, no statewide sales tax, and only modest local sales taxes, plus an annual dividend paid to residents.
Do no-income-tax states have higher property taxes?
Often yes. New Hampshire and Texas carry some of the highest property tax rates in the country, at 2.05% and 1.60%, to make up for the lost income tax revenue.
Is moving to a no-income-tax state worth it?
It depends on your income and spending. High earners and retirees usually save the most, while middle-income families may find high property or sales taxes offset much of the benefit.
Does no income tax apply to retirement income?
Generally yes. These states do not tax Social Security, pensions, or retirement account withdrawals at the state level, which is a major reason they attract retirees.