Which US states have no income tax in 2026?

Nine states levy no broad personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Two carry caveats — Washington taxes high-earner long-term capital gains at 7% above an annual threshold, and New Hampshire historically taxed interest and dividends but completed phasing that tax out, so wages were never taxed and investment income is no longer taxed either.

Do no-income-tax states make up the revenue elsewhere?

Yes. States without an income tax raise money through other channels — typically higher sales taxes, higher property taxes, or resource and tourism revenue. Texas and New Hampshire have notably high property taxes; Tennessee and Washington have high combined sales-tax rates; Alaska, Wyoming and Nevada lean on natural-resource royalties and tourism. The total tax burden in a 'no income tax' state is not necessarily lower once these are counted.

If I move to a no-income-tax state, do I stop paying state tax immediately?

Only once you genuinely change your tax domicile. States with income taxes — California and New York are aggressive about this — will continue to claim you as a resident until you cut real ties: move your home, driver's licence, voter registration, vehicle registration, doctors and the centre of your life. Simply renting a mailbox or spending a few months in Florida does not end residency in a high-tax state, and audits over 'fake' moves are common.

Does forming an LLC in a no-income-tax state avoid my home state's tax?

No. Forming a Wyoming or Nevada LLC while you live and work in California does not avoid California tax. Your LLC has 'nexus' wherever you actually operate, so you must register it as a foreign LLC in your home state and pay that state's taxes and fees. The no-income-tax state benefits its own residents and businesses based there, not someone who merely files paperwork there.

Which no-income-tax state is best to move to?

It depends on what replaces the income tax for your situation. Florida and Nevada are popular with remote workers and retirees (no income tax, no estate tax, but watch property insurance and sales tax). Texas has no income tax but high property taxes. Washington has no wage tax but taxes high capital gains. Wyoming and South Dakota are low-burden overall but rural. Compare the full picture — income, property, sales and any capital-gains tax — for your income and assets.

Do these states tax retirement or investment income?

Generally no for wages and most income. The main exception is Washington's 7% tax on long-term capital gains above an annual threshold, which can affect investors and those selling a business or large asset holdings. Otherwise, the nine states do not tax wages, retirement distributions, Social Security or, in nearly all cases, investment income.

What States Have No Income Tax? 2026 List & Trade-offs

"What state has no income tax?" is one of the most common questions from remote workers, retirees and anyone tired of a big state tax bill. The list is short — nine states — but the headline hides the real story: states without an income tax simply raise the money another way, and moving to one only helps if you actually change your tax home. This guide gives the 2026 list with the two important caveats, the taxes that replace the income tax, and the residency rules that decide whether a move actually saves you anything. Written for US persons.

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Northwest Registered Agent — if your move involves forming or re-homing an LLC, do it with a privacy-first agent.

The nine states with no income tax

As of 2026, these states levy no broad personal income tax:

Alaska
Florida
Nevada
New Hampshire — never taxed wages; its tax on interest and dividends has been phased out.
South Dakota
Tennessee — repealed its investment-income (Hall) tax.
Texas
Washington — but it taxes high-earner long-term capital gains at 7% above an annual threshold.
Wyoming

So the clean "no tax on any income" group is seven states, with New Hampshire now joining after phasing out its investment-income tax, and Washington the outlier because of its capital-gains tax.

Map-style list of the nine US states with no personal income tax — Nine states — two (Washington, New Hampshire) with **caveats**.

The money has to come from somewhere

"No income tax" does not mean "low tax." These states replace the revenue through other channels:

Property tax: Texas and New Hampshire are known for high property taxes — a homeowner can pay more there than they saved on income tax.
Sales tax: Tennessee and Washington have among the highest combined state-and-local sales-tax rates in the country.
Resources and tourism: Alaska, Wyoming and Nevada lean on oil, mineral and gaming/tourism revenue, which keeps the resident burden genuinely low.

Run the full picture for your own life — income level, whether you own a home, how much you spend — before assuming a no-income-tax state is cheaper. For a high earner who rents, it usually is; for a homeowner in a high-property-tax state, it may not be.

No income tax states rely on higher property tax, sales tax, or resource revenue — The income tax is replaced by **property, sales or resource** revenue.

Moving there: you must actually change domicile

This is where people get caught. High-tax states like California and New York do not let you go easily. They will keep taxing you as a resident until you genuinely change your domicile — the place that is the true centre of your life. To establish a new domicile you generally need to:

Move your permanent home there.
Change your driver's licence, voter registration and vehicle registration.
Move your bank accounts, doctors, and day-to-day life.
Spend the majority of your time there and be able to prove it.

A mailbox in Florida and occasional visits will not survive an audit. States aggressively challenge "paper moves," and the burden is on you to prove the change. The same domicile logic underlies international moves — see our guide to tax residency in Monaco and relocating to Portugal from the US.

The LLC myth

Forming an LLC in Wyoming or Nevada does not let a resident of another state avoid their home state's income tax. Your LLC has nexus where you actually live and work, so you must register it as a foreign LLC at home and pay that state's taxes and fees. The no-income-tax state benefits people and businesses genuinely based there — not someone filing paperwork from afar. We cover this in detail in which state is best for a non-resident LLC and Wyoming LLC benefits.

Changing domicile requires moving home, licence, registration and the centre of life — Saving the tax requires a **real** change of domicile, not a mailbox.

Common mistakes

Equating "no income tax" with "low tax." Property and sales taxes can more than replace it.

Doing a paper move. High-tax states audit and reclaim residents who do not genuinely relocate.

Forming an out-of-state LLC to dodge home-state tax. Nexus follows where you operate.

Ignoring Washington's capital-gains tax. If you are selling a business or large holdings, the 7% can matter.

When to consult a qualified professional

Get advice before relocating for tax reasons if you are leaving an aggressive state (California, New York), selling a business or large assets, or keeping ties (property, family, work) to your old state. A state-tax specialist can structure the move so it actually ends your old residency.

Soveraine is an editorial publication, not a tax firm. Read our editorial policy and disclaimer before acting on anything in this article.