Quick Answer
Nine states have no personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Workers in these states typically keep 5-10% more of their gross pay compared to high-tax states like California (13.3% top rate).
Best Answer
Sarah Chen, CPA
Traditional employees considering relocation or comparing job offers across states
The 9 states with no personal income tax
Nine states currently impose no personal income tax on residents: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. This means your paycheck won't have any state income tax withheld, leaving more money in your pocket.
How much extra money you keep
The savings can be substantial. If you earn $75,000 annually, here's what you'd pay in state income tax in various locations:
That's nearly $7,000 more per year in your pocket by living in a tax-free state versus California.
Example: $75,000 salary comparison
Let's compare a $75,000 salary in Texas (no state tax) versus New York (6.85% effective rate):
Texas (no state income tax):
New York:
The Texas resident keeps an extra $198 per paycheck or about $5,148 per year.
Important caveats to consider
What you should do
If you're considering a move or job offer, use our paycheck calculator to compare your actual take-home pay across different states. Factor in the total cost of living, not just taxes.
Key takeaway: Living in a no-income-tax state can save you $3,000-$7,000+ annually on a $75,000 salary, but consider the full financial picture including housing costs and other state taxes.
*Sources: [Tax Foundation State Tax Data](https://taxfoundation.org/data/all/state/), [IRS Publication 17 - Your Federal Income Tax](https://www.irs.gov/pub/irs-pdf/p17.pdf)*
Key Takeaway: Nine states have no personal income tax, potentially saving you $3,000-$7,000+ annually on a typical salary.
Comparison of state income tax rates for a $75,000 salary
| State Category | Examples | Annual State Tax | Monthly Savings vs High-Tax States |
|---|---|---|---|
| No Income Tax | TX, FL, NV, WA | $0 | $580+ |
| Low Tax (3-5%) | UT, CO, IL | $2,250-3,750 | $260-400 |
| Medium Tax (5-7%) | VA, GA, MO | $3,750-5,250 | $140-260 |
| High Tax (8%+) | CA, NY, NJ | $6,000-10,000+ | $0 |
More Perspectives
Sarah Chen, CPA
Remote employees who can work from anywhere and want to optimize their tax situation
Remote work tax advantages
As a remote worker, you have unique flexibility to choose your tax residence. The nine no-income-tax states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming) become especially attractive when you can work from anywhere.
Key considerations for remote workers
Employer location matters: Some states try to tax remote workers if their employer is based there. New York's "convenience rule" is particularly aggressive about this, though recent court cases have challenged it.
State residency rules: You generally need to establish true residency in a no-tax state - not just rent an address. This typically means:
Example savings: A remote software developer earning $100,000 could save $6,000-$10,000 annually by establishing residency in Texas instead of California, while maintaining the same lifestyle and job.
Popular destinations for remote workers
Key takeaway: Remote workers can potentially save thousands annually by establishing residency in no-income-tax states, but must follow state residency rules carefully.
Key Takeaway: Remote workers can save $6,000-$10,000+ annually on a $100,000 salary by establishing residency in tax-free states.
Sarah Chen, CPA
Individuals who relocated to or from a no-income-tax state and need to understand the paycheck impact
What changes immediately on your paycheck
When you move to a no-income-tax state, you'll notice the change on your very next paycheck. Your employer's payroll system will stop withholding state income tax once you update your address.
Update your W-4 with HR
Notify your HR department immediately about your move. They need to:
Mid-year move considerations
If you moved mid-year, you'll need to file tax returns in both states:
Example: Moved from Illinois to Florida in July. Your W-2 will show Illinois state tax withheld for January-June income, but $0 state tax for July-December income.
Immediate paycheck impact
On a $60,000 salary, moving from a 5% tax state to a no-tax state increases your biweekly take-home pay by approximately $115 ($3,000 ÷ 26 pay periods).
Key takeaway: Moving to a no-tax state provides immediate paycheck relief, but requires updating your W-4 and may complicate that year's tax filing.
Key Takeaway: Moving to a no-tax state immediately increases your take-home pay by roughly 5-10% of your gross income.
Sources
- Tax Foundation State Tax Data — Comprehensive state tax information and rates
- IRS Publication 17 — Your Federal Income Tax - includes state tax deduction information
Related Questions
Reviewed by Sarah Chen, CPA on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.