States With No Income Tax 2026: Complete Guide
9 US states have no income tax. See how they compare on cost of living, safety, jobs, and overall quality of life.
The 9 states with no income tax
New Hampshire, South Dakota, Wyoming, Washington, Florida, Texas, Tennessee, 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 86.6/100 and a A+ grade. Nevada trails at 39.2/100. The spread of 47.4 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 | 86.6 | 5.94% | $97,880 | 105 |
| South Dakota | 80.2 | 6.46% | $72,280 | 88 |
| Wyoming | 68.2 | 5.79% | $71,847 | 91 |
| Washington | 63.2 | 8.61% | $90,325 | 109 |
| Florida | 51.7 | 6.49% | $71,516 | 103 |
| Texas | 45.9 | 7.77% | $73,035 | 97 |
| Tennessee | 45.3 | 6.38% | $64,036 | 93 |
| Alaska | 39.3 | 4.93% | $84,143 | 102 |
| Nevada | 39.2 | 8.62% | $70,448 | 97 |
New Hampshire
New Hampshire ranks #1 overall with a composite score of 86.6/100 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 transportation at 35.9. 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 #3 overall with a composite score of 80.2/100 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 68.2/100 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 63.2/100 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 #29 overall with a composite score of 51.7/100 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.
Texas
Texas ranks #35 overall with a composite score of 45.9/100 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.
Tennessee
Tennessee ranks #36 overall with a composite score of 45.3/100 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.
Alaska
Alaska ranks #43 overall with a composite score of 39.3/100 and a D 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 #44 overall with a composite score of 39.2/100 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 57.7/100, slightly above the national average of 56.9.
4 of the 9 states score above 55 (the midpoint). For safety, the average score among these states is 54.1. 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, Texas, Tennessee, Alaska, Nevada have no state income tax.
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%. Other taxes, cost of living, and quality of services all matter.
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 86.6/100 and a A+ grade.
Q:How do no-income-tax states fund their budgets?
Through higher sales taxes, property taxes, severance taxes on natural resources, tourism taxes, and fees. The mix varies by state.
Q:Who benefits most from no income tax?
High earners, especially remote workers earning coastal salaries while living in low-cost states. The tax savings are proportional to income, so higher earners save more.