🇺🇸 United States

No Income Tax States Comparison

All 9 states with no income tax ranked by total tax burden. Enter your salary, home value, and spending to see which "tax-free" state actually costs the least — Texas may surprise you.

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v2026-04-11 · Data: state averages, 2026. Actual rates vary by county.

How to Use This Comparison Tool

All 9 States Ranked tab

Enter your annual salary, home value, and annual taxable spending. The tool calculates property tax, sales tax, and other taxes (WA payroll taxes, AK Permanent Fund Dividend) for all 9 no-income-tax states and ranks them from cheapest to most expensive.

Cost Breakdown tab

See a visual bar chart showing how each state's tax burden breaks down between property tax, sales tax, and other levies. Useful for understanding why a state ranks where it does. Alaska's green bar shows the PFD credit that offsets other taxes.

Compare 2 States tab

Pick any two of the nine states for a detailed head-to-head comparison. See exactly how much you save in one state vs the other, broken down by tax category.

The Formula

Total Tax Burden = (Home Value × Property Tax Rate) + (Annual Spending × Sales Tax Rate) + Payroll Taxes − PFD Credit

"No income tax" does not mean "no taxes." Every state raises revenue through property taxes, sales taxes, and sometimes payroll taxes or other fees. This tool compares the total non-income tax burden for all 9 states to find which one truly costs the least.

Example: Why Texas Ranks Last

Profile: $80K salary, $350K home, $25K annual spending

#1 Wyoming$3,265/yr
#2 Alaska (with PFD)$3,515/yr
#3 Nevada$3,913/yr
#9 Texas$7,663/yr

Texas charges $5,600 in property tax on a $350K home (1.60% rate) plus $2,063 in sales tax. That's $4,398 more per year than Wyoming. Over a 30-year mortgage, that's $132,000 in extra taxes for the privilege of living in a "no income tax" state that actually has the highest tax burden of the nine.

FAQ

The nine states with no state income tax are: Texas (TX), Florida (FL), Tennessee (TN), Nevada (NV), Washington (WA), Wyoming (WY), South Dakota (SD), Alaska (AK), and New Hampshire (NH). Note that New Hampshire eliminated its interest and dividends tax in 2025, making it fully income-tax-free.
No. Every no-income-tax state compensates with higher property taxes, sales taxes, or other fees. Texas has the highest property tax rate (1.60%) of the nine; Tennessee has the highest sales tax (9.55%); Washington charges unique payroll taxes (1.12%). The total tax burden varies by $4,000+ between the cheapest and most expensive no-income-tax state.
The Alaska Permanent Fund Dividend (PFD) is an annual payment from oil revenue investment returns to every Alaska resident. It averages roughly $1,000-$1,600 per year. In this calculator, we use $1,000 as a conservative estimate. The PFD effectively reduces Alaska's total tax burden, making it the #2 cheapest no-income-tax state.
New Hampshire has the highest property tax rate (1.86%) of all 9 no-income-tax states. On a $350K home, that's $6,510/year in property tax alone. While you save on sales tax (0%), the property tax burden more than offsets those savings compared to states like Wyoming (0.55%) or Nevada (0.53%).
No. Federal income tax and FICA (Social Security + Medicare) are identical across all states, so we exclude them. This comparison focuses only on taxes that vary between states: property tax, sales tax, and state-specific payroll taxes. For full take-home pay calculations including federal taxes, use our state paycheck calculators.

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