9 States With No Income Tax (2025)
7 min read · Updated 2026-06-27
One of the biggest factors in how much of your salary you actually keep is something you might not think of as a "paycheck" decision at all: which state you live in. Nine states charge no income tax on wages, which can meaningfully boost your take-home pay compared with a high-tax state. Here's the complete list, what it really means, and the trade-offs to watch for.
The 9 states with no income tax on wages
As of the 2025 tax year, these states do not levy a state income tax on earned wages. Click any state to see a paycheck breakdown for it:
A note on New Hampshire: it historically taxed interest and dividend income, but that tax was fully phased out as of January 1, 2025. For wages, it now functions as a no-income-tax state. Washington taxes certain high-value capital gains but not wages.
What it means for your paycheck
In a no-income-tax state, the only deductions from your paycheck are federal income tax and FICA. There's no state line item at all. For a single filer earning $60,000, skipping a typical 5% state income tax saves roughly $2,500– $3,000 a year — money that stays in your take-home pay.
The trade-offs: no free lunch
States still need revenue, so the ones without an income tax usually make it up elsewhere:
- Higher sales tax: Tennessee and Washington have some of the highest combined sales-tax rates in the country.
- Higher property tax: Texas and New Hampshire are known for above-average property taxes.
- Other fees: excise taxes, vehicle registration, and similar charges can be higher.
Whether you come out ahead depends on your spending, whether you own property, and the local cost of living — not just your salary.
Compare states side by side
The clearest way to see the impact is to compare the same salary across states. Try running $60,000 through the calculator for Texas (no income tax) and then for California (progressive up to 13.3%) to see the difference in take-home pay. For the bigger picture, read how paycheck taxes work.
See your own take-home pay
Put these numbers to work. Enter your salary into our free calculator to see your net pay after federal, state, and FICA taxes — for any of the 50 states.
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Frequently asked questions
How many states have no income tax?
Nine US states have no state income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Does living in a no-income-tax state mean I pay no taxes?
No. You still pay federal income tax and FICA on your paycheck. No-income-tax states also tend to rely more on sales tax, property tax, or other fees to fund services.
Is take-home pay higher in states with no income tax?
On the paycheck itself, yes — without a state income tax deduction, more of your gross pay reaches your account. But the overall cost of living and other taxes can offset that advantage.