How many states have no income tax in 2026?

Nine: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Washington taxes capital gains over a threshold; New Hampshire's interest-and-dividends tax was fully repealed in 2025.

Do no-income-tax states actually have lower total taxes?

Not always — they typically lean on higher property taxes (Texas, New Hampshire) or sales taxes (Tennessee, Washington) to fund the budget. Total burden depends on your spending and home value.

Are no-income-tax states better for retirees?

Generally yes for wage and retirement income, but Texas and New Hampshire have above-average property taxes that can offset the savings for homeowners.

Will more states eliminate income tax?

Mississippi and Louisiana have legislated phase-downs but not full eliminations. Kentucky and Iowa are gradually cutting rates. Full elimination requires replacing the revenue, which is politically difficult.

Updated June 2026Reviewed for Tax Year 2026

States With No Income Tax (2026)

All 9 U.S. states with no personal income tax in 2026, ranked by property and sales tax burden, with retirement, business, and relocation implications. Includes chart, sortable table, and CSV download.

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No-Income-Tax States Ranked by Overall Burden

Lower overall burden = better outcome despite 0% income tax.

No-Income-Tax States — Composite Burden (2026)

Composite burden share

Pros & Cons

Pros

No state withholding on W-2 wages
Simpler filing — usually no state return
Retirement income (Social Security, pensions, 401(k)/IRA) not taxed at the state level
Popular relocation destinations for remote workers and retirees

Cons

Higher property taxes (TX, NH) or sales taxes (TN, WA)
Washington has a 7% capital-gains tax above the threshold
Fewer state-funded services (school funding varies sharply)
Cost-of-living spikes in popular cities (Austin, Nashville, Tampa)

Compare full retirement scores in our Best States for Retirees ranking.

Full Interactive Ranking

Click any column header to sort. Click a state name to open its full tax guide.


1	WyomingWY	0.00%	0.61%	5.44%	0.00%	68/100	2.85%
2	AlaskaAK	0.00%	1.19%	1.80%	0.00%	66/100	2.92%
3	NevadaNV	0.00%	0.55%	8.24%	0.00%	66/100	3.57%
4	New HampshireNH	0.00%	1.93%	0.00%	0.00%	61/100	3.86%
5	FloridaFL	0.00%	0.89%	7.00%	0.00%	64/100	3.88%
6	TennesseeTN	0.00%	0.71%	9.56%	0.00%	63/100	4.29%
7	South DakotaSD	0.00%	1.24%	6.44%	0.00%	61/100	4.41%
8	WashingtonWA	0.00%	0.98%	9.38%	7.00%	61/100	4.77%
9	TexasTX	0.00%	1.80%	8.25%	0.00%	54/100	6.08%

Methodology

All TaxEase rankings use the same per-state data lake refreshed for tax year 2026.

Income tax — average effective rate paid by middle-quintile households, cross-checked against Tax Foundation State Individual Income Tax Rates.
Property tax — property tax paid divided by median market home value (Census ACS 5-year + state DOR aggregates).
Sales tax — state statutory rate + population-weighted local average (Tax Foundation 2025 mid-year).
Capital gains — state long-term capital gains rate (often the same as ordinary income).
Retirement-friendliness score (0–100) — 50 + retirement_bonus − property×1000 − sales×100 − income×150, clamped 0–100.
Overall burden — income + property×2 + sales×0.30, assuming home value ≈ 2× income and 30% of income spent on taxable goods.

Read full research methodology →

Cite This Research

Journalists, bloggers, and researchers — please credit TaxEase.money with a link to this page.

Plain text: Source: TaxEase.money 2026 State Tax Research — "States With No Income Tax in 2026 — Full List & Trade-offs" (https://taxease.money/states-with-no-income-tax)
APA: TaxEase Research Team. (2026). States With No Income Tax in 2026 — Full List & Trade-offs. TaxEase.money. https://taxease.money/states-with-no-income-tax
MLA: "TaxEase Research Team." States With No Income Tax in 2026 — Full List & Trade-offs, TaxEase.money, 2026, https://taxease.money/states-with-no-income-tax.

Press inquiries: research@taxease.money

Data Sources

Every figure is sourced from an official tax authority or non-partisan policy institute.

Internal Revenue Service (IRS) ↗
Federal 2026 brackets (Rev. Proc. 2025-32).
Tax Foundation — State Tax Rates ↗
Cross-state income, property, sales, corporate data.
U.S. Census Bureau — ACS 5-Year ↗
Median home value and effective property tax.
State Departments of Revenue ↗
Authoritative 2026 schedules, forms, and instructions for each state.
Congressional Research Service (CRS) ↗
Non-partisan federal tax analysis.
Bureau of Labor Statistics — CES ↗
Household taxable-spend share used in burden composite.

All 50 State Tax Guides →State Tax Brackets 2026 →Income Tax Calculator →Paycheck Calculator →Property Tax Calculator →Capital Gains Calculator →California vs Texas Taxes →Florida vs New York Taxes →Washington vs Oregon Taxes →

Frequently Asked Questions

How many states have no income tax in 2026?: Nine: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Washington taxes capital gains over a threshold; New Hampshire's interest-and-dividends tax was fully repealed in 2025.
Do no-income-tax states actually have lower total taxes?: Not always — they typically lean on higher property taxes (Texas, New Hampshire) or sales taxes (Tennessee, Washington) to fund the budget. Total burden depends on your spending and home value.
Are no-income-tax states better for retirees?: Generally yes for wage and retirement income, but Texas and New Hampshire have above-average property taxes that can offset the savings for homeowners.
Will more states eliminate income tax?: Mississippi and Louisiana have legislated phase-downs but not full eliminations. Kentucky and Iowa are gradually cutting rates. Full elimination requires replacing the revenue, which is politically difficult.