Nine states levy no broad-based individual income tax in 2026. The eight long-standing ones are Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire eliminated its last tax, on interest and dividends, effective in 2025, making it a ninth in practice.
The list
- Alaska - no income tax, no state sales tax; funded by oil royalties
- Florida - no income tax; 6% state sales tax
- Nevada - no income tax; gaming and sales taxes fund the state
- New Hampshire - no earned-income tax as of 2025; high property taxes
- South Dakota - no income tax
- Tennessee - no income tax (the Hall tax ended in 2021)
- Texas - no income tax; among the highest property taxes
- Washington - no income tax on wages, but a capital gains excise tax (see below)
- Wyoming - no income tax; mineral extraction funds the state
Washington's capital gains tax
Washington has no income tax on wages, but it levies a 7% capital gains excise tax on net long-term capital gains above an inflation-indexed standard deduction (about $270,000; roughly $278,000 for the 2025 filing year). Gains above $1 million are taxed at 9.9%. Real estate, retirement accounts, and certain small-business sales are exempt. Confirm the exact 2026 threshold with the Washington Department of Revenue.
No-tax does not mean no tax
These states raise revenue elsewhere, often through higher sales or property taxes. Tennessee and Washington have high combined sales taxes; Texas and New Hampshire have high property taxes. A move should weigh the whole picture, not just income tax.
Numbers: the wage advantage
A $200,000 W-2 earner in Washington or Texas pays $0 in state income tax on wages; the same earner in California could pay about $14,000 in state income tax at 2026 rates. The gap is real, but sales and property taxes can claw some of it back.
Disclaimer: This article is general educational information, not tax, legal, or investment advice. Dollar amounts come from the 2026 sources listed at the end of this article and may change. Before you act, talk to a licensed CPA, EA, or tax attorney about your own situation.