Which States Have No Income Tax in 2026? Complete Guide
New Hampshire, South Dakota, Wyoming, Washington, Florida, Tennessee, Texas, Alaska, Nevada charge no state income tax in 2026. New Hampshire leads in overall quality of life with a composite score of 87.8/100. See how all 9 no-income-tax states compare on cost of living, safety, and jobs.
The 9 states with no income tax
New Hampshire, South Dakota, Wyoming, Washington, Florida, Tennessee, Texas, Alaska, Nevada — these 9 states charge zero state income tax. For a household earning $100,000 in a state with a 5% income tax, that's $5,000 a year in savings, enough to make or break a relocation decision. But the no-tax pitch isn't as simple as keeping more of your paycheck.
Sorted by overall quality of life, New Hampshire leads the no-income-tax states with a composite score of 87.8/100 and a A+ grade. Nevada trails at 40.3/100. The spread of 47.5 points shows that no income tax doesn't guarantee a good place to live.
The average total tax burden among these states is 6.8%, compared to the national average of 8.7%. Lower overall, but the gap is narrower than you'd expect because other taxes fill some of the gap.
| State | Overall Score | Tax Burden | Median Income | Cost of Living |
|---|---|---|---|---|
| New Hampshire | 87.8 | 5.94% | $97,880 | 105 |
| South Dakota | 81.8 | 6.46% | $72,280 | 88 |
| Wyoming | 69.4 | 5.79% | $71,847 | 91 |
| Washington | 61.4 | 8.61% | $90,325 | 109 |
| Florida | 52.8 | 6.49% | $71,516 | 103 |
| Tennessee | 46.8 | 6.38% | $64,036 | 93 |
| Texas | 45.8 | 7.77% | $73,035 | 97 |
| Alaska | 42.1 | 4.93% | $84,143 | 102 |
| Nevada | 40.3 | 8.62% | $70,448 | 97 |
New Hampshire
New Hampshire ranks #1 overall with a composite score of 87.8/100 and a A+ grade. Total tax burden: 5.94%. Despite no income tax, the state collects revenue through property tax (1.89%) and sales tax (0%). Median household income: $97,880. Cost of living index: 105.
New Hampshire's strongest category is health at 100.0, and its weakest is outdoor access at 43.0. The violent crime rate of 110 per 100K is well below the national average, and life expectancy is 79.2 years. Population is growing at 0.6% — the tax-free status is at least partly why.
South Dakota
South Dakota ranks #2 overall with a composite score of 81.8/100 and a A+ grade. Total tax burden: 6.46%. Despite no income tax, the state collects revenue through property tax (1.14%) and sales tax (6.11%). Median household income: $72,280. Cost of living index: 88.
South Dakota's strongest category is education at 89.8, and its weakest is outdoor access at 45.8. The violent crime rate of 330 per 100K is near the national average, and life expectancy is 78.5 years. Population is growing at 1% — the tax-free status is at least partly why.
Wyoming
Wyoming ranks #16 overall with a composite score of 69.4/100 and a B+ grade. Total tax burden: 5.79%. Despite no income tax, the state collects revenue through property tax (0.58%) and sales tax (5.56%). Median household income: $71,847. Cost of living index: 91.
Wyoming's strongest category is outdoor access at 95.7, and its weakest is education at 36.7. The violent crime rate of 203 per 100K is well below the national average, and life expectancy is 77.5 years. Population is growing at 0.6% — the tax-free status is at least partly why.
Washington
Washington ranks #22 overall with a composite score of 61.4/100 and a B grade. Total tax burden: 8.61%. Despite no income tax, the state collects revenue through property tax (0.88%) and sales tax (9.51%). Median household income: $90,325. Cost of living index: 109.
Washington's strongest category is health at 87.8, and its weakest is outdoor access at 35.4. The violent crime rate of 372 per 100K is near the national average, and life expectancy is 79.2 years. Population is growing at 1% — the tax-free status is at least partly why.
Florida
Florida ranks #28 overall with a composite score of 52.8/100 and a C+ grade. Total tax burden: 6.49%. Despite no income tax, the state collects revenue through property tax (0.82%) and sales tax (6.98%). Median household income: $71,516. Cost of living index: 103.
Florida's strongest category is fiscal health at 70.2, and its weakest is outdoor access at 27.8. The violent crime rate of 384 per 100K is near the national average, and life expectancy is 78.2 years. Population is growing at 2% — the tax-free status is at least partly why.
Tennessee
Tennessee ranks #36 overall with a composite score of 46.8/100 and a C grade. Total tax burden: 6.38%. Despite no income tax, the state collects revenue through property tax (0.58%) and sales tax (9.61%). Median household income: $64,036. Cost of living index: 93.
Tennessee's strongest category is affordability at 78.7, and its weakest is outdoor access at 13.3. The violent crime rate of 592 per 100K is well above the national average, and life expectancy is 75.3 years. Population is growing at 1% — the tax-free status is at least partly why.
Texas
Texas ranks #37 overall with a composite score of 45.8/100 and a C grade. Total tax burden: 7.77%. Despite no income tax, the state collects revenue through property tax (1.63%) and sales tax (8.2%). Median household income: $73,035. Cost of living index: 97.
Texas's strongest category is affordability at 75.8, and its weakest is outdoor access at 4.7. The violent crime rate of 401 per 100K is above the national average, and life expectancy is 77 years. Population is growing at 1.7% — the tax-free status is at least partly why.
Alaska
Alaska ranks #41 overall with a composite score of 42.1/100 and a C grade. Total tax burden: 4.93%. Despite no income tax, the state collects revenue through property tax (1.16%) and sales tax (1.82%). Median household income: $84,143. Cost of living index: 102.
Alaska's strongest category is outdoor access at 100.0, and its weakest is education at 0.0. The violent crime rate of 724 per 100K is well above the national average, and life expectancy is 76.6 years. Population is growing at 0.3% — the tax-free status is at least partly why.
Nevada
Nevada ranks #43 overall with a composite score of 40.3/100 and a D grade. Total tax burden: 8.62%. Despite no income tax, the state collects revenue through property tax (0.5%) and sales tax (8.24%). Median household income: $70,448. Cost of living index: 97.
Nevada's strongest category is affordability at 62.0, and its weakest is education at 8.2. The violent crime rate of 431 per 100K is above the national average, and life expectancy is 77.5 years. Population is growing at 1.5% — the tax-free status is at least partly why.
How they replace income tax revenue
States need revenue. Without income tax, they lean on other sources. The most common: higher sales taxes, property taxes, severance taxes on natural resources (oil, gas, minerals), and tourism taxes. The mix varies significantly.
Average property tax rate among no-income-tax states: 1.02%. Average sales tax: 6.23%. Some rely heavily on a single revenue source — which works until commodity prices drop or tourism slows.
Quality of life comparison
The no-income-tax states span a wide quality-of-life range. The average composite score among them is 58.7/100, slightly above the national average of 57.4.
4 of the 9 states score above 55 (the midpoint). For safety, the average score among these states is 53.7. For education: 45.3. For health: 46.0. No income tax doesn't automatically mean the state skimps on services, but it doesn't guarantee quality either.
Is no income tax worth moving for?
That depends on your income, your current state's tax rate, and what you value. If you earn $150,000 and your state charges 6% income tax, you'd save $9,000/year — but if the destination state has higher property taxes on a more expensive house, higher sales taxes on everything you buy, and worse schools for your kids, the math gets complicated.
The clearest winners: high-earning remote workers who can live in a low-cost, no-income-tax state while earning a coastal salary. A software engineer making $200,000 while living in a state with no income tax and a cost of living index of 90 is in a genuinely better financial position than the same engineer in a high-tax, high-cost state. For everyone else, compare the total picture before you move.
Frequently Asked Questions
Q:Which states have no income tax?
New Hampshire, South Dakota, Wyoming, Washington, Florida, Tennessee, Texas, Alaska, Nevada have no state income tax in 2026. These 9 states span a wide range of geographies, climates, and quality-of-life profiles — from wealthy coastal states to resource-rich inland states to retirement havens. For a household earning $100,000 in a state with a 5% income tax, moving to one of these states saves $5,000 annually in state income tax alone. However, total savings depend on other taxes (property, sales), cost of living, and whether the local job market supports your career. Sorted by overall quality of life, New Hampshire leads at 87.8/100 and Nevada trails at 40.3/100.
Q:Is it better to live in a no-income-tax state?
Not necessarily. The average total tax burden among no-income-tax states is 6.8%, compared to the national average of 8.7%. The gap is smaller than most people expect because these states typically compensate with higher property taxes, sales taxes, or severance taxes on natural resources. Beyond taxes, quality of services matters — some no-income-tax states score lower for education and healthcare because lower revenue limits public investment. The average composite score among no-income-tax states is 58.7/100. Whether no income tax benefits you depends on your income level, property ownership, spending habits, and what you value in services like schools, roads, and public safety.
Q:Which no-income-tax state has the best quality of life?
New Hampshire ranks highest among no-income-tax states with a composite score of 87.8/100 and a A+ grade. The state combines zero income tax with strong performance across economy, safety, and education. Among the no-income-tax states, 4 score above 55 (the midpoint). For safety, the average score among these states is 53.7. For education: 45.3. For health: 46.0. The spread of 47.5 points between the best and worst no-income-tax states shows that the tax policy alone doesn't determine quality of life.
Q:How do no-income-tax states fund their budgets?
Without income tax revenue, these states rely on alternative funding sources that vary significantly. The most common: higher sales taxes (average sales tax among these states: 6.23%), property taxes (average: 1.02%), severance taxes on natural resource extraction (oil, gas, minerals — critical for energy-producing states), tourism and hospitality taxes (especially in vacation destinations), and various fees and user charges. Some states rely heavily on a single revenue source, which creates fiscal risk when commodity prices drop or tourism slows. Others have diversified revenue streams that provide more stability. The most fiscally healthy no-income-tax states balance multiple revenue sources while keeping overall tax burden manageable.
Q:Who benefits most from no income tax?
High earners benefit most because income tax savings are proportional to income — a household earning $200,000 saves $10,000-$14,000 annually in a no-income-tax state versus one with 5-7% income tax. Remote workers earning coastal salaries while living in low-cost, no-tax states see the greatest financial advantage. Retirees on fixed incomes (Social Security, pensions, investment income) also benefit significantly, which is why several no-income-tax states are popular retirement destinations. Middle-income households benefit less in absolute dollars, and may actually pay more in total taxes if the no-income-tax state has high property or sales taxes. The clearest winner: a software engineer earning $200,000 remotely in a no-tax state with a COL index of 90 is in a dramatically better financial position than the same engineer in a high-tax, high-cost state.