Nine states levy no individual income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. New Hampshire joined the list when its tax on interest and dividends was repealed effective January 2025. States without an income tax raise revenue elsewhere — usually through sales and property taxes — so the paycheck line and the household budget can move in opposite directions.
What changes immediately
State income tax withholding, which is the visible one. Also local income tax where it exists, which is levied by some cities and counties and is invisible in any state-level comparison. And state disability or paid family leave contributions, which several states deduct and most do not.
The nine
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Two footnotes worth carrying: New Hampshire only completed the picture when its interest and dividends tax was repealed with effect from January 2025, and Washington levies a capital gains tax on certain high gains while taxing no wages at all.
The revenue has to come from somewhere
States without an income tax lean harder on sales tax, property tax, or both. A household that owns a home in a high property tax state can pay more overall than it would have under a moderate income tax, and the paycheck will still look better. Comparing states on income tax alone answers a smaller question than most people think they are asking.
Partial-year and dual filing
Move mid-year and you generally file part-year returns in both states, allocating income to each. Keep the date and any employer notification, because allocation disputes are settled with dates.
Working across a line
Living in one state and working in another usually means both have a claim, resolved by reciprocity agreements between specific state pairs or by a credit. There is no general rule, only the rule for that pair.
The honest summary
State income tax is worth several per cent of gross and is one of the easiest adjustments to make to a relocation calculation. It is also the adjustment most likely to be mistaken for the whole answer.
Common questions
Which states have no income tax on wages?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — nine as of 2026.
When did New Hampshire join that list?
Its tax on interest and dividends was repealed effective January 2025. Wages and salaries were never taxed there.
Does no income tax mean lower taxes overall?
Not necessarily. Those states lean on sales and property taxes instead, and a homeowner can pay more overall while the paycheck looks better.
What happens if I move mid-year?
You generally file part-year returns in both states and allocate income between them. Keep the dates, because allocation is settled with dates.
What if I live and work in different states?
Both usually have a claim, resolved by a reciprocity agreement for that specific pair or by a credit. There is no general rule.