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Updated 2026-10-25 · Tax year 2026

States with no income tax

Nine states don't tax wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Federal income tax, Social Security and Medicare still come out of every paycheck, and Washington and Alaska take small payroll deductions of their own.

The 9 states with no tax on wages

State Tax on wages Employee payroll deductions in 2026
Alaska None Unemployment insurance: 0.5% on up to $54,200 (max $271)
Florida None None
Nevada None None
New Hampshire None None (paid family leave is voluntary)
South Dakota None None
Tennessee None None
Texas None None
Washington None Paid Family and Medical Leave and WA Cares (see below)
Wyoming None None

None of these states has a city or county income tax on wages either. Each link opens that state’s paycheck calculator with 2026 figures.

The special cases

New Hampshire: no tax on wages, and no longer on investment income

New Hampshire has never taxed wages. For years it did tax interest and dividends, but that tax was repealed for tax periods beginning after December 31, 2024. A New Hampshire paycheck shows only federal withholding, Social Security and Medicare. The state’s paid family leave plan is voluntary.

Tennessee: the Hall tax is gone

Tennessee also never taxed wages. Its Hall income tax on interest and dividends was repealed for tax periods beginning on or after January 1, 2021.

Washington: no income tax, but two payroll premiums

Washington doesn’t tax wages, and neither does Seattle. Two state programs still take money from most paychecks:

  • Paid Family and Medical Leave (PFML). The total premium is 1.13% of wages in 2026, and the employee pays up to 71.43% of it, which is about 0.81% of wages. It stops at $184,500 of wages per employer, and tips are excluded. Employers with fewer than 50 employees don’t owe the employer share, but they still withhold the employee share.
  • WA Cares Fund (long-term care). 0.58% of wages, with no cap. Employees with an approved exemption pay nothing from the date on their approval letter. Approval routes include living outside Washington, certain military service members and spouses, veterans with a 70%+ service-connected disability rating, and earlier private-insurance opt-outs. From 2026, holders of non-immigrant work visas are exempt unless they opt in.

On $2,000 of biweekly pay, that’s about $16.14 for PFML and $11.60 for WA Cares. Some employers also take a small hourly worker share of workers’ compensation (L&I), which depends on the job’s risk class.

Alaska: an employee share of unemployment insurance

Alaska is one of the few states where employees pay into unemployment insurance. In 2026 it’s 0.5% of wages up to $54,200 per employer, a maximum of $271 a year. If you have more than one employer and pay more than the maximum in total, you can apply to the Alaska Department of Labor for a refund of the excess.

Florida, Nevada, South Dakota, Texas and Wyoming

These states take nothing at the state level from employees. State unemployment tax is paid by the employer, not taken from your pay. Nevada’s Modified Business Tax is also an employer-only payroll tax.

Federal taxes still apply

Moving to a no-income-tax state removes only the state layer. In every state, your paycheck still loses:

  • Federal income tax, based on your W-4. A single filer gets a $16,100 standard deduction in 2026 before the 10% bracket starts.
  • Social Security: 6.2% of wages up to $184,500.
  • Medicare: 1.45% of all wages, plus 0.9% above $200,000.

For a single person earning $60,000 in Texas and paid biweekly, these come to about 16% of gross pay. We break that down line by line in how much tax is taken out of my paycheck.

Working in a state that does tax wages

Living in a no-tax state doesn’t protect wages you earn in a state that taxes them. The work state can generally tax that income, and since your home state has no income tax, there’s no home-state credit to offset it. Two examples from our state data:

  • A Washington resident who works in Oregon pays Oregon income tax on those wages, plus Oregon’s 0.1% statewide transit tax on the Oregon work.
  • A New Hampshire resident who commutes to Massachusetts is taxed by Massachusetts.

Working from home inside your no-tax state usually changes the picture, but the rules depend on the work state. Our guide to living in one state and working in another covers the details.

Does my state have income tax?

The other 41 states and Washington, D.C. tax wages in some form. Some use a single flat rate and others use brackets. A few 2026 examples:

  • Pennsylvania: a flat 3.07%, plus local earned income tax in most municipalities.
  • Illinois: a flat 4.95%.
  • North Carolina: a flat 3.99%.
  • Indiana: 2.95% state rate, plus a county tax.
  • California, New York, New Jersey: graduated brackets, plus state disability or family leave deductions.

To see the exact amount for your state, pick it in the paycheck calculator or browse all states. How we source and check each state’s rules is on our methodology page.

Common questions

Which states have no state income tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming don't tax wages in 2026. New Hampshire's old tax on interest and dividends no longer applies after 2024, and Tennessee's Hall tax ended in 2021.
Does Texas have state income tax?
No. Texas has no state or local income tax on wages, and Texas unemployment tax is paid by the employer, not taken from your pay. Your paycheck shows only federal income tax, Social Security and Medicare.
Does Washington have income tax?
Washington doesn't tax wages, but it takes two payroll premiums in 2026: Paid Family and Medical Leave (about 0.81% of wages, up to $184,500) and WA Cares long-term care (0.58% with no cap, unless you have an approved exemption).
Do I still pay federal taxes in a state with no income tax?
Yes. Federal income tax, Social Security (6.2%) and Medicare (1.45%) apply in every state. A no-income-tax state only removes the state layer.
If I live in Florida but work in Georgia, do I pay Georgia tax?
Generally yes. The state where you do the work can tax those wages, and a no-tax home state has no income tax to give you a credit against. See our guide to living in one state and working in another.

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