The nine states with no income tax
Nine U.S. states take nothing out of your paycheck for state income tax: Washington, Texas, Florida, Tennessee, Nevada, New Hampshire, South Dakota, Alaska, and Wyoming. (New Hampshire taxed interest and dividends until that levy was fully repealed in 2025; Washington now taxes only high capital gains, not wages.) For a worker, that can mean keeping several percent more of every paycheck — but "no income tax" is not the same as "cheapest place to live."
No income tax lifts your take-home pay, but a state still has to fund itself — usually through higher sales, property, or other taxes. And a low tax bill doesn't help if housing is expensive. That's why we rank these states on the whole picture, not just the tax line.
No-income-tax states, ranked for overall living
Here are all nine, ordered by our Best Life Rank — which weighs cost of living against climate, healthcare, schools, safety, economy, and air quality. Cost rank is out of 50 (#1 = cheapest); BLISS is a cost-of-living multiplier where 1.00 = the U.S. average.
| State | Best Life Rank | Cost rank | BLISS (cost) | Links |
|---|---|---|---|---|
| New Hampshire | #2 | #37 | 1.10 (10% above avg) | profile · salary · take-home |
| Washington | #5 | #38 | 1.11 (11% above avg) | profile · salary · take-home |
| Tennessee | #13 | #10 | 0.85 (15% below avg) | profile · salary · take-home |
| South Dakota | #14 | #8 | 0.84 (16% below avg) | profile · salary · take-home |
| Florida | #22 | #27 | 0.98 (2% below avg) | profile · salary · take-home |
| Wyoming | #24 | #23 | 0.94 (6% below avg) | profile · salary · take-home |
| Nevada | #34 | #32 | 1.01 (1% above avg) | profile · salary · take-home |
| Texas | #42 | #15 | 0.89 (12% below avg) | profile · salary · take-home |
| Alaska | #50 | #41 | 1.15 (15% above avg) | profile · salary · take-home |
What the numbers say
New Hampshire is the best all-round no-income-tax state on our rank (#2 of 50). On pure affordability, South Dakota is the cheapest of the nine (cost rank #8), while Alaska is the most expensive (#41) — proof that a zero income-tax rate and a low cost of living don't always travel together.
The real question isn't "does this state tax my income?" — it's "what will I actually keep, and is it worth it to live there?" See your exact after-tax paycheck in any of these states with our paycheck guides (linked above), then check whether the cost of living justifies the move on each state's profile.
See what you'd actually take home
Pick any state and get your real paycheck after federal tax and FICA — no state income tax to subtract.
Open the salary calculator ›