The 9 No-Income-Tax States (and Their Tradeoffs)
As of 2026, nine states impose no broad-based income tax on wages. They are not created equal — each funds state government through a different combination of property taxes, sales taxes, and in the case of Alaska and Wyoming, natural resource royalties.
Want to see your full tax picture in any of these states? The State Tax Stack tool combines income tax, estimated property tax burden, and effective sales tax rate into a single total burden estimate for your income level.
Ranked: Total Tax Burden at $75,000 Income (Single Filer)
At $75,000, the difference between states is meaningful but not enormous — flat-tax states cluster near the middle. The no-income-tax states dominate the top, with Wyoming and Nevada offering the lowest combined burden. Note that high-income-tax states like California and New York are still relatively manageable at this income level because their progressive brackets impose lower marginal rates on the first $75K.
Methodology: Total burden = estimated state income tax effective rate + average effective property tax rate (applied to median home value as a proxy for consumption) + estimated effective sales tax rate (based on spending as a share of income). All figures are estimates and will vary based on homeownership status, consumption patterns, and local tax rates.
| # | State | State Income Tax | Avg Property Tax Rate | State Sales Tax | Est. Total Burden |
|---|---|---|---|---|---|
| 1 | Wyoming | 0% | 0.61% | 4.0% | ~3.8% |
| 2 | Nevada | 0% | 0.55% | 6.85% | ~4.2% |
| 3 | Alaska | 0% | 1.04% | 0% (state) | ~4.3% |
| 4 | Florida | 0% | 0.89% | 6.0% | ~4.6% |
| 5 | Tennessee | 0% (wages) | 0.67% | 7.0% | ~4.8% |
| 6 | South Dakota | 0% | 1.08% | 4.2% | ~4.9% |
| 7 | Indiana | 3.05% flat | 0.85% | 7.0% | ~5.6% |
| 8 | Pennsylvania | 3.07% flat | 1.36% | 6.0% | ~6.0% |
| 9 | Colorado | 4.4% flat | 0.51% | 2.9% | ~6.1% |
| 10 | Michigan | 4.05% flat | 1.31% | 6.0% | ~6.3% |
Ranked: Total Tax Burden at $150,000 Income (Single Filer)
At $150,000, progressive states begin to show their teeth. California, New York, Oregon, and Minnesota all have marginal rates above 7% for income in the $100K–$200K range, pushing their effective rates significantly higher. Wyoming, Nevada, and Florida continue to dominate the top of the list — their lack of income tax scales perfectly with income.
Texas climbs the rankings despite its 1.63% property tax because at $150K income, saving ~$11,000/year in state income tax far outweighs any property tax difference versus lower-income states.
| # | State | State Income Tax (eff.) | Avg Property Tax Rate | State Sales Tax | Est. Total Burden |
|---|---|---|---|---|---|
| 1 | Wyoming | 0% | 0.61% | 4.0% | ~3.9% |
| 2 | Nevada | 0% | 0.55% | 6.85% | ~4.0% |
| 3 | Florida | 0% | 0.89% | 6.0% | ~4.3% |
| 4 | Alaska | 0% | 1.04% | 0% (state) | ~4.3% |
| 5 | Texas | 0% | 1.63% | 6.25% | ~5.1% |
| 6 | South Dakota | 0% | 1.08% | 4.2% | ~4.7% |
| 7 | Colorado | 4.4% flat | 0.51% | 2.9% | ~6.4% |
| 8 | Indiana | 3.05% flat | 0.85% | 7.0% | ~6.5% |
| 9 | Utah | 4.55% flat | 0.57% | 4.85% | ~6.8% |
| 10 | North Carolina | 4.5% flat | 0.80% | 4.75% | ~6.8% |
The Bottom of the List at $150K
At $150,000, progressive high-tax states extract a much larger percentage. These are the states with the heaviest combined burden at this income level:
| State | Effective State Income Tax | Total Est. Burden | vs. Wyoming |
|---|---|---|---|
| California | ~7.4% effective | ~14.2% | +$15,450/yr |
| New York | ~6.5% effective | ~13.0% | +$13,650/yr |
| New Jersey | ~6.2% effective | ~13.5% | +$14,400/yr |
| Oregon | ~7.0% effective | ~12.2% | +$12,450/yr |
| Minnesota | ~6.1% effective | ~11.8% | +$11,850/yr |
Note: New Jersey's high combined burden reflects both a significant income tax (top rate 10.75%) and the highest average property tax rates in the country at 2.47% — a double burden that high-income homeowners feel acutely.
Ranked: Total Tax Burden at $300,000 Income (Single Filer)
At $300,000, the divergence between states becomes enormous. California's top marginal rate of 13.3% applies to income above $1M, but a $300K earner already faces a marginal rate of 9.3% on income above $66,295 and 10.3% above $338,639. The effective rate for a $300K single filer in California is approximately 9.8–10.2%.
Wyoming and Nevada remain firmly at the top. The flat-tax states (PA, IN, CO) become more competitive because their flat rate doesn't escalate with income, while progressive states pile on.
| # | State | State Income Tax (eff.) | Avg Property Tax Rate | State Sales Tax | Est. Total Burden |
|---|---|---|---|---|---|
| 1 | Wyoming | 0% | 0.61% | 4.0% | ~3.6% |
| 2 | Nevada | 0% | 0.55% | 6.85% | ~3.7% |
| 3 | Florida | 0% | 0.89% | 6.0% | ~3.9% |
| 4 | Texas | 0% | 1.63% | 6.25% | ~4.5% |
| 5 | Alaska | 0% | 1.04% | 0% (state) | ~3.8% |
| 6 | South Dakota | 0% | 1.08% | 4.2% | ~4.1% |
| 7 | Pennsylvania | 3.07% flat | 1.36% | 6.0% | ~6.1% |
| 8 | Indiana | 3.05% flat | 0.85% | 7.0% | ~6.1% |
| 9 | Colorado | 4.4% flat | 0.51% | 2.9% | ~6.2% |
| 10 | North Carolina | 4.5% flat | 0.80% | 4.75% | ~6.5% |
High-Income States at $300K — The Worst Offenders
California, New York, and New Jersey become dramatically more expensive at $300K. The combination of high marginal income tax rates, high property taxes, and in New Jersey's case both, creates a tax environment that is nearly 5× higher than Wyoming for high earners:
| State | Effective State Income Tax at $300K | Total Est. Burden | Annual $ vs. Wyoming |
|---|---|---|---|
| California | ~9.8–10.2% effective | ~16.4% | +~$38,400/yr |
| New Jersey | ~8.8% effective | ~16.1% | +~$37,500/yr |
| New York | ~8.3% effective | ~14.8% | +~$33,600/yr |
| Oregon | ~9.4% effective | ~14.0% | +~$31,200/yr |
| Minnesota | ~8.1% effective | ~13.5% | +~$29,700/yr |
Best States for Freelancers Specifically
If you're a freelancer or independent contractor, your federal self-employment tax (SE tax) is fixed regardless of which state you live in — it's a federal tax. The 15.3% SE tax rate is the same in California, Wyoming, or Florida. What changes dramatically by state is the state income tax layer on top of your federal tax bill.
This means that for high-earning freelancers, state selection has an outsized impact on total tax burden. A $150,000 freelancer in California faces:
- Federal income tax: ~$26,400 (22–24% brackets)
- SE tax: ~$19,800 (after deductions)
- California state income tax: ~$11,100 (effective ~7.4%)
- Total federal + state: ~$57,300 (38.2% effective)
The same $150,000 freelancer in Wyoming:
- Federal income tax: ~$26,400
- SE tax: ~$19,800
- Wyoming state income tax: $0
- Total federal + state: ~$46,200 (30.8% effective)
The difference: $11,100 per year — every year — in state income tax alone.
Wyoming and Nevada: Lowest Total Burden for High-Earning Freelancers
For freelancers earning $100,000–$500,000, Wyoming and Nevada consistently offer the lowest total tax burden. Wyoming has the additional advantage of lower property taxes and a smaller overall government footprint. Nevada offers access to major cities (Las Vegas, Reno) with no state income tax and a business-friendly regulatory environment.
For a detailed breakdown of state taxes specifically for freelancers and self-employed individuals — including which states have favorable SE tax deduction treatments — see the Best States for Freelancers Tax Guide.
What "Moving for Taxes" Actually Saves
The savings from relocating to a low-tax state are real and substantial — but they are often overstated by people who don't account for the full picture. Here is what the numbers actually look like for a complete relocation.
California to Texas: $150K Single Filer
California to Texas: $300K Single Filer
New York to Florida: $150K Single Filer (NYC Resident)
New York City residents pay an additional NYC city income tax of 3.078–3.876% on top of the New York State income tax. Combined NY state + NYC tax for a $150K single filer is approximately $13,800–$14,500 per year. Florida has zero. The net savings moving from NYC to Florida (renter scenario) are approximately $13,000–$14,000 per year in state and city income tax alone.
The Domicile Requirement: This Isn't Just a Mailing Address Change
California and New York are two of the most aggressive states in the country when it comes to pursuing former residents who claim to have moved but still have California or New York connections. Simply renting an apartment in Texas while maintaining a California driver's license, keeping your car registered in California, and spending 7+ months in California is not a valid domicile change.
Establishing legal domicile requires:
- Registering to vote in the new state
- Updating driver's license and vehicle registration to the new state
- Changing your banking, insurance, and professional memberships to the new state address
- Spending more than 183 days per year in the new state (for most states)
- Severing California- or New York-source income if possible (remote workers with CA employer may still owe CA tax)
- Keeping a contemporaneous log of days in each state
For a complete guide to the legal process of establishing domicile in a new state, see the State Tax Relocation Guide 2026.
<\!-- CTA BANNER -->Frequently Asked Questions
Which states have no income tax in 2026?
Nine states impose no broad-based income tax on wages in 2026: Alaska, Florida, Nevada, New Hampshire (no tax on wages; taxes investment income), South Dakota, Tennessee (no tax on wages; fully eliminated Hall Tax in 2021), Texas, Washington, and Wyoming. Note that Washington imposes a 7% capital gains tax on gains above $262,000, so it is not tax-free for high earners with significant investment income.
What is the lowest tax state overall in 2026?
Wyoming consistently ranks as the lowest total tax burden state in 2026. It combines zero state income tax, one of the lowest average effective property tax rates in the country (0.61%), a low state sales tax (4.0%), and no corporate income tax or estate tax. Wyoming funds government largely from mineral extraction royalties, which allows residents to pay less across all tax categories. Alaska is also extremely competitive — no income tax and no state sales tax — though it has higher local property taxes in many municipalities.
How much do you save moving from California to Texas in state income tax?
A single filer earning $150,000 who establishes true domicile in Texas saves approximately $10,800–$11,500 per year in California state income tax. At $300,000 income, the savings grow to approximately $29,000–$31,000 per year. However, Texas homeowners face an average effective property tax rate of 1.63% — the highest in the nation — so the property tax offset must be factored into the full picture. Renters get the maximum benefit; homeowners with high-value properties capture less. The California Franchise Tax Board also aggressively audits former residents who fail to properly terminate California domicile — the relocation process must be done correctly to avoid continued California tax liability.
Do no-income-tax states make up the difference with property and sales taxes?
Most do, to varying degrees. Texas offsets its lack of income tax with the highest average property tax rate nationally (1.63% effective). New Hampshire offsets zero income and sales tax with the second-highest property tax rate (1.86%). Washington uses a 6.5% state sales tax plus local rates that push combined rates to 8–10%+ in major cities. Tennessee has the highest state sales tax rate (7.0%) plus local rates. Wyoming is the significant exception — funded largely by mineral royalties, it maintains low rates across income, property, and sales taxes simultaneously. Nevada is also a genuine low-tax state, using gaming and tourism taxes to supplement government revenue.