No Income Tax Savings Calculator
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The Seven No-Income-Tax States
| State | Income Tax | Sales Tax (avg) | Property Tax | Key Revenue Source |
|---|---|---|---|---|
| Alaska | None | 1.82% | 1.04% | Oil revenues, PFD |
| Florida | None | 7.05% | 0.86% | Sales tax, tourism |
| Nevada | None | 8.24% | 0.53% | Gaming tax, sales tax |
| South Dakota | None | 6.10% | 1.22% | Sales tax, tourism |
| Texas | None | 8.20% | 1.60% | Property tax, sales tax |
| Washington | None* | 9.23% | 0.92% | Sales tax, B&O tax |
| Wyoming | None | 5.44% | 0.56% | Mineral extraction |
*Washington imposes a 7% capital gains tax on gains exceeding $262,000/year.
Detailed Profiles
Alaska
Alaska is the only state with no income tax AND no state sales tax. The state funds government primarily through oil revenues. Alaska also pays residents an annual Permanent Fund Dividend (PFD), typically $1,000-$3,000 per person per year, funded by investment returns from the state's oil wealth. However, Alaska has a high cost of living, especially for housing, food, and energy, and local governments can impose their own sales taxes (average local rate: 1.82%). Property tax averages 1.04%, above the national median.
Florida
Florida is the most popular no-income-tax state for domestic migration, attracting retirees, remote workers, and businesses from high-tax states. Florida's combination of no income tax, no estate tax, moderate property taxes (0.86%), and a generous homestead exemption makes it especially attractive for retirees. The 6% state sales tax (avg 7.05% combined) and corporate income tax (5.5%) help fund government services. Tourism taxes provide significant additional revenue.
Nevada
Nevada funds government through gaming taxes, sales tax (8.24% combined average), and a modified business tax on large employers. Nevada has low property tax (0.53%) and no corporate income tax. The state is popular with business owners and high earners. Las Vegas and Reno offer relatively low housing costs compared to neighboring California. However, Nevada's economy is heavily dependent on tourism and entertainment, making it cyclically sensitive.
South Dakota
South Dakota has no income tax at either the personal or corporate level. The state relies on sales tax (6.10% combined average) and tourism revenue. South Dakota has become a major destination for trust creation due to favorable trust laws (no rule against perpetuities, strong asset protection). Property tax is moderate at 1.22%. Cost of living is below the national average.
Texas
Texas is the largest no-income-tax state by population and economy. The constitutional prohibition on income tax makes it extremely unlikely to change. The trade-off is one of the nation's highest property tax rates (approximately 1.60%) and high combined sales tax (8.20% average). Texas offers a generous $100,000 homestead exemption for school taxes. The state's franchise (margin) tax on businesses is another revenue source. Texas has seen massive population growth from California, Illinois, and New York transplants.
Washington
Washington has no income tax on wages but introduced a 7% capital gains tax in 2022 on gains over $262,000. The state has one of the highest combined sales tax rates in the nation (9.23% average, 10.25% in Seattle). Washington's Business & Occupation (B&O) tax is a gross receipts tax on businesses, with rates from 0.471% to 1.50%. Property tax is moderate at 0.92%. The Seattle metro area's high cost of living partially offsets the income tax advantage.
Wyoming
Wyoming has no income tax, no corporate income tax, and relatively low sales tax (5.44% combined average) and property tax (0.56%). The state funds government primarily through mineral extraction taxes on coal, oil, and natural gas. Wyoming has the smallest population of any US state (under 600,000), which limits job opportunities but offers an extremely low cost of living, wide open spaces, and minimal government regulation.
The Trade-Offs: What No-Income-Tax States Cost You
No state can operate without revenue. States that forgo income tax must make up the difference elsewhere:
- Higher property taxes: Texas (1.60%) and New Hampshire (1.93%) have some of the highest property tax rates in the nation.
- Higher sales taxes: Washington (9.23%), Tennessee (9.55%), and Texas (8.20%) all have combined sales tax rates near or above 9%.
- Fewer public services: Some no-income-tax states spend less per capita on education, healthcare, and infrastructure.
- Natural resource dependence: Alaska and Wyoming rely heavily on oil and mineral revenues, making budgets volatile.
- Regressive tax structures: Sales and property taxes tend to hit lower-income households harder as a percentage of income compared to progressive income taxes.
New Hampshire: The Eighth No-Tax State
New Hampshire previously taxed interest and dividends at 5%, making it technically an income-tax state. This tax was phased out over several years and fully eliminated in 2025. New Hampshire now taxes no form of personal income. However, New Hampshire has the nation's fourth-highest property tax rate at approximately 1.93%, making it expensive for homeowners despite having no income or sales tax.
Frequently Asked Questions
Seven states: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. New Hampshire eliminated its last income tax (on interest and dividends) in 2025.
Yes. Most compensate with higher sales taxes, property taxes, or both. Texas has ~1.60% property tax. Washington has ~9.23% sales tax. Consider the full tax picture including all tax types.
It depends on your income. Someone earning $100,000 moving from California could save $4,000-$6,000/year in state income tax. Use the calculator above for your specific situation.
Effectively yes, as of 2025. The interest and dividends tax was fully phased out. NH does not tax wages, salaries, or other earned income. However, it has very high property taxes (1.93%).