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 For years it did tax interest and dividends, but that tax was repealed for tax periods beginning after December 31, 2024.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 Its Hall income tax on interest and dividends was repealed for tax periods beginning on or after January 1, 2021.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.