States with No Income Tax in 2025

The Appeal of Zero Income Tax

For many Americans, state income tax takes a significant bite out of their paycheck—often ranging from 3% to over 13% depending on where you live. Moving to a state with no income tax can feel like getting an instant raise.

The 9 States with No Income Tax

As of 2025, these states do not levy a state income tax on wages:

1. Alaska
2. Florida
3. Nevada
4. South Dakota
5. Tennessee
6. Texas
7. Washington
8. Wyoming
9. New Hampshire (taxes interest and dividends only)

The Trade-Offs

Before you pack your bags, remember that states need revenue to operate. States without income tax often make up the difference through higher sales tax (like Tennessee and Washington), higher property tax (like Texas and New Hampshire), or other fees like vehicle registration and tolls.

Use our Total Effective Tax Rate Calculator to see the full picture. Sometimes, a "low tax" state might actually cost you more once you factor in property and sales taxes!