States with no individual income tax.
9 U.S. states levy no individual income tax on wages.
'No state income tax' usually means no wage tax — but the details vary by state. Some have capital gains tax (Washington). Some have business gross-receipts tax (Tennessee, Washington). All still require federal filing. Here's the comparison.
The 9 states at a glance
AK · FL · NV · NH · SD · TN · TX · WA · WY. New Hampshire fully repealed its tax on interest and dividends effective 2025. Tennessee fully repealed its Hall Income Tax effective 2021. Washington added a capital gains tax on high earners in 2022. Otherwise the list is stable.
What each state does (and doesn't) tax
| State | Wage income | Investment income | Capital gains | Retirement income | Estate tax | Per-state guide |
|---|---|---|---|---|---|---|
| Alaska (AK) | None | None | None | None | None | AK guide → |
| Florida (FL) | None | None | None | None | None | FL guide → |
| Nevada (NV) | None | None | None | None | None | NV guide → |
| New Hampshire (NH) | None | None (I&D tax repealed 2025) | None | None | None | NH guide → |
| South Dakota (SD) | None | None | None | None | None | SD guide → |
| Tennessee (TN) | None | None (Hall tax repealed 2021) | None | None | None | TN guide → |
| Texas (TX) | None | None | None | None | None | TX guide → |
| Washington (WA) | None | None | Yes — on long-term gains over annual threshold | None | State estate tax | WA guide → |
| Wyoming (WY) | None | None | None | None | None | WY guide → |
What "no income tax" doesn't mean
The phrase 'no state income tax' is shorthand for 'no wage income tax.' Several of these states have other tax structures that affect specific filers:
- Washington capital gains tax: Long-term capital gains above an annual threshold are taxed at a flat percentage for high-income filers. Most filers don't trigger this, but equity-comp exits and business sales do.
- Washington B&O Tax: Business gross-receipts tax for self-employed filers and businesses with WA nexus.
- Tennessee F&E Tax: Franchise & Excise Tax on businesses with TN nexus (separate from individual income tax).
- Nevada Modified Business Tax + Commerce Tax: Both apply to businesses above thresholds.
- Florida Corporate Income Tax: Applies to C-corps and S-corps filing federally as C-corps.
- Alaska Permanent Fund Dividend: Federally taxable even though Alaska has no state income tax.
- Federal return still required: No state income tax doesn't eliminate the federal filing obligation, which exists regardless of state residency.
Who benefits most from moving to a no-tax state?
- High-income wage earners moving from CA, NY, NJ, MA, OR, MN, HI, or other high-marginal-rate states. Annual savings can be substantial — particularly for $500K+ household income.
- Equity-comp recipients in the year of a major vest or exercise, particularly if the move is established BEFORE the event. Note: California in particular continues to claim sourcing on RSUs vested after a move — see the California guide for the workdays-allocation rule.
- Retirees with significant investment or retirement income. The savings depend on the source state's treatment of retirement income — some high-tax states (Illinois, Pennsylvania) already exclude most retirement income, so the savings are smaller.
- Business sellers structuring an exit, where capital gains on the sale would otherwise be subject to high state tax. Note: Washington's capital gains tax catches this in WA itself; the other 8 no-tax states are fully untaxed on the gain.
Related comparisons
- States with reciprocity agreements →
- States that tax Social Security →
- States with estate or inheritance tax →
- Tool: state-move tax impact estimator →
Considering a tax-motivated move?
Book a free 15-minute Discovery Exchange. We'll walk through residency documentation requirements, post-move sourcing rules (RSUs, deferred comp, K-1s), and which state-pair patterns the IRS and former state will scrutinize.
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