States With No Income Tax 2026
States with no wage income tax
| State | Abbr. | Notes |
|---|---|---|
| Alaska | AK | No income tax, no sales tax |
| Florida | FL | No income tax |
| Nevada | NV | No income tax |
| New Hampshire | NH | No wage income tax; interest and dividends taxed at 3% in 2026, phasing out Jan 2027 |
| South Dakota | SD | No income tax |
| Tennessee | TN | Wage income tax eliminated 2021 |
| Texas | TX | No income tax; higher property taxes typical |
| Washington | WA | No income tax; 7% capital-gains tax on gains above $270,000 |
| Wyoming | WY | No income tax |
Washington state enacted a 7% capital-gains tax in 2022 that applies to long-term gains above $270,000. Wages are still untouched. New Hampshire's investment income tax is phasing out and will be zero from January 2027.
No income tax does not always mean lower taxes overall
States that forgo income tax typically generate revenue through other means:
- Property taxes: Texas and New Hampshire have some of the highest property tax rates in the US.
- Sales taxes: Nevada, Tennessee and Washington have above-average sales taxes. Alaska and New Hampshire have no statewide sales tax.
- Other levies: Washington's capital-gains tax, Florida's corporate income tax, and various excise taxes vary by state.
States with the highest income tax rates
The table below shows top marginal rates for single filers in 2026. These rates apply only to the portion of income above each threshold; lower income is taxed at lower rates.
| State | Top marginal rate | Threshold (single) | Notes |
|---|---|---|---|
| California | 13.3% | $1,000,000+ | 9.3% starts at $66,295 for single filers |
| Hawaii | 11.0% | $200,000+ | 8.25% bracket starts at $48,001 |
| New Jersey | 10.75% | $5,000,000+ | 8.97% on $500,001 to $1M; 10.75% above $5M |
| Oregon | 9.9% | $125,000+ | No sales tax; income tax is the main state burden |
| Minnesota | 9.85% | $183,341+ | 7.85% bracket starts at $87,111 |
| New York | 10.9% | $25,000,000+ | 6.85% on $215,401 to $1.1M; NYC adds up to 3.876% |
| Vermont | 8.75% | $204,001+ | Most residents fall in the 6.6% or 7.6% bracket |
| Iowa | 3.8% | All income | Flat rate from 2025; lower than prior progressive system |
How much does state income tax cost?
At $100,000 of wages (single filer), approximate state income tax:
- California: ~$6,000 (9.3% bracket)
- New York: ~$6,100 (6.85% bracket, full year NYC adds ~$3,500 more)
- Oregon: ~$7,200 (9.9% bracket starts at $125,001, so mostly at 8.75%)
- Minnesota: ~$5,600
- Texas, Florida, Nevada: $0
Use the US paycheck calculator to see the full picture including federal tax and FICA for your specific state.
Frequently Asked Questions
Does moving to a no-income-tax state save a lot of money?
It can. A person earning $150,000 who moves from California to Texas saves roughly $8,000 to $10,000 per year in state income tax alone (California's rate on that income is around 9.3%). The savings need to be weighed against differences in property taxes, cost of living and any local income taxes (some Texas cities have no income tax, but New York City adds up to 3.876% on top of New York State tax).
Which state has the highest income tax in 2026?
California has the highest top marginal rate at 13.3%, which applies to income above $1,000,000. For most income levels Hawaii (11%), New Jersey (8.97% to 10.75%) and New York (up to 10.9% plus NYC surcharge) are among the highest.
Do I still owe state income tax if I work remotely for a company in another state?
Generally you owe income tax to the state where you physically work, not where your employer is based. Some states (notably New York) apply a "convenience of the employer" rule that can tax remote workers in other states if the employer is based in New York and the remote work is for the employee's own convenience. Consult a tax professional if you work across state lines.
State tax rates from official state revenue department publications for 2026. Figures are approximate and may not reflect all deductions, credits or local taxes. General information, not tax advice. Last updated 2026-11-04.