One of the most impactful factors on your take-home pay is whether your state charges income tax. In 2024, nine states have no state income tax, potentially saving residents thousands of dollars annually.
The Nine No-Income-Tax States
- Alaska — No income or sales tax
- Florida — Popular for retirees and remote workers
- Nevada — Funded largely by tourism and gaming taxes
- New Hampshire — No tax on earned income (taxes interest and dividends)
- South Dakota — No income, estate, or inheritance tax
- Tennessee — Fully eliminated income tax as of 2021
- Texas — One of the largest no-income-tax states
- Washington — No income tax but has a capital gains tax
- Wyoming — Low overall tax burden
How Much Could You Save?
The savings depend on your income level and the state you’re comparing against. For example, someone earning $100,000 in California (top rate 13.3%) could save over $7,000 annually by moving to Texas.
The Tradeoffs
States without income tax often make up revenue through:
- Higher property taxes (e.g., Texas)
- Higher sales taxes (e.g., Tennessee, Washington)
- Fewer public services or higher fees
Use our state calculators to compare your take-home pay across different states.