As of January 2026, nine U.S. states do not levy a personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. While these states do not impose income taxes on wages or salaries, residents are still required to pay federal income taxes. Washington imposes a 7% tax on capital gains for high-income earners, and New Hampshire no longer taxes interest and dividend income as of 2025.
Overall, which of these 3 no income tax states best to move to tax wise?
What is the best no income tax state in the USA to be based in
No state income tax. Is this a true amenity or just a conservative talking point?
How does the US tax system work if there are states with zero tax?
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I'm considering a move to an income tax free state in a few years. However, I'm aware that just because there's no income tax, a lot of other taxes may be much higher and therefore offset any advantages of doing so. Things like property tax, automobile tags and automobile sales tax, boat, rv, pwc and off road vehicle tags and taxes along with other taxes I may not be thinking of and in general, sales tax and car and property insurance. Florida, Tennessee and Texas are the 3 on my list and I'm familiar with all the states geographically, politically and ethnically so I'm really just looking tax-wise. For instance, my home state has fairly low income tax but 5% capital gains is much more than zero, and we have low property tax and vehicle tags but high sales tax and tax is collected even when a used vehicle is sold.