State Income Tax Comparison
Nine states do not tax wage income. See what you would save by moving — and what you might pay instead in property and sales tax.
Estimated Annual Savings
States With No Income Tax (2026)
| State | Notes |
|---|---|
| Alaska | No income tax, no state sales tax |
| Florida | No income tax; 6% state sales tax |
| Nevada | No income tax |
| New Hampshire | Phased out its interest & dividends tax effective Jan 1, 2025 |
| South Dakota | No income tax |
| Tennessee | No income tax; highest combined sales tax in the US |
| Texas | No income tax; among the highest effective property tax rates |
| Washington | No wage tax, but a 7% capital gains tax above ~$278,000 |
| Wyoming | No income tax |
Highest Top Marginal Rates (2026)
| State | Top Rate | Top Bracket (Single) |
|---|---|---|
| California | 13.3% | $1,000,000 (incl. 1% surcharge) |
| Hawaii | 11.0% | $325,000 |
| New York | 10.9% | $25,000,000 |
| New Jersey | 10.75% | $1,000,000 |
| Oregon | 9.9% | $125,000 |
| Minnesota | 9.85% | $206,050 |
| Massachusetts | 9.0% | $1,107,750 |
| Vermont | 8.75% | $242,000 |
| Wisconsin | 7.65% | $323,290 |
| Maine | 7.15% | $63,450 |
| Connecticut | 6.99% | $500,000 |
| Maryland | 6.5% | $1,000,000 (+ county add-ons) |
Top marginal rates apply only to income above the listed threshold — your effective rate on total income is much lower.
Flat-Tax States (2026)
| State | Rate |
|---|---|
| Idaho | 5.3% |
| Georgia | 4.99% |
| Illinois | 4.95% |
| Kentucky | 3.5% |
| Indiana | 2.95% |
| Ohio | 2.75% above $26,050 |
The Catch: Total Tax Burden
A state income tax is only one piece of the puzzle. States without an income tax usually raise revenue elsewhere:
- Property tax. Texas has no income tax but an effective property tax rate around 1.8% — among the highest in the country. New Jersey and Connecticut are also high.
- Sales tax. Tennessee and Louisiana have the highest combined state-and-local sales tax rates, above 9.5%.
- Other taxes. Estate and inheritance taxes, capital gains taxes, and payroll premiums (like Washington's WA Cares) all affect the real comparison.
Use the optional fields in the calculator above to net these out — the result is a far more honest picture than comparing income tax alone.
If You Do Move
- Establish residency properly — a permanent home, driver's license, voter registration, and limited days in the old state.
- File a part-year return for the year you move, in both states if required.
- Check source rules — some states keep taxing income from sources inside the state after you leave.
- Watch remote-work rules — a few states tax remote employees based on where the employer is located.
Frequently Asked Questions
Which states have no income tax in 2026?
Nine states do not tax wage income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Note that Washington still taxes capital gains above roughly $278,000, and New Hampshire finished phasing out its tax on interest and dividends effective January 1, 2025.
Which state has the highest income tax?
California has the highest top marginal rate at 13.3% (12.3% on income above $1 million plus a 1% Mental Health Services surtax). Hawaii is second at 11.0%, followed by New York at 10.9% and New Jersey at 10.75%.
Does moving to a no-income-tax state always save money?
No. States without an income tax often raise revenue through higher property taxes, sales taxes, or both. Texas, for example, has no income tax but one of the highest effective property tax rates in the country, and Tennessee has the highest combined sales tax rate. Always compare the total tax burden, not just income tax.
What is a flat-tax state?
A flat-tax state applies a single rate to all income above a threshold, rather than graduated brackets. In 2026 these include Idaho (5.3%), Georgia (4.99%), Illinois (4.95%), Kentucky (3.5%), and Indiana (2.95%). Ohio collapsed to a flat 2.75% on income above $26,050 in 2026.
Do I still owe tax to my old state if I move?
Possibly. Most states tax income you earned while a resident, and some tax income from sources inside the state even after you leave. Establish residency carefully — usually through a permanent home, driver's license, voter registration, and the number of days you spend there — and file a part-year return for the year you move.
Do state income taxes affect my federal return?
Yes, indirectly. State and local income taxes are deductible on Schedule A, but only if you itemize, and the deduction is capped under the SALT limit. Most taxpayers take the standard deduction, in which case state taxes do not affect the federal return at all.
Last updated: September 2026 · Reviewed by ScholarPay editorial team · Rates compiled from the Tax Foundation's 2026 state tax table as reported in secondary sources. Illustrative only — verify with your state's revenue department.