No Income Tax States 2026
Is Income Taxed
State | Is Income Taxed↓ | Highest Income Tax Bracket | Notes | |
|---|---|---|---|---|
 | Alaska | No Income Tax | ||
 | Florida | No Income Tax | ||
 | Nevada | No Income Tax | ||
 | New Hampshire | No Income Tax | New Hampshire phased out taxes on interest and dividend income for tax periods beginning on or after Jan 01, 2025. Up to 5% I&D taxes may still be applied to returns pertaining to tax periods that began before 2025. | |
 | South Dakota | No Income Tax | ||
 | Tennessee | No Income Tax | Tennessee previously taxed interest and dividend income, but this policy ended in 2021. | |
 | Texas | No Income Tax | ||
 | Washington | No Income Tax | $9 | Washington taxes only capital gains income. |
 | Wyoming | No Income Tax | ||
 | Alabama | Income Taxed | $5 | |
 | Arizona | Income Taxed | $2.50 | |
 | Arkansas | Income Taxed | $3.90 | |
 | California | Income Taxed | $13.30 | |
 | Colorado | Income Taxed | $4.40 | |
 | Connecticut | Income Taxed | $6.99 | |
 | Delaware | Income Taxed | $6.60 | |
 | District of Columbia | Income Taxed | $10.75 | |
 | Georgia | Income Taxed | $5.19 | |
 | Hawaii | Income Taxed | $11 | |
 | Idaho | Income Taxed | $5.30 | |
 | Illinois | Income Taxed | $4.95 | |
 | Indiana | Income Taxed | $2.95 | |
 | Iowa | Income Taxed | $3.80 | |
 | Kansas | Income Taxed | $5.58 | |
 | Kentucky | Income Taxed | $3.50 | |
 | Louisiana | Income Taxed | $3 | |
 | Maine | Income Taxed | $7.15 | |
 | Maryland | Income Taxed | $6.50 | |
 | Massachusetts | Income Taxed | $9 | |
 | Michigan | Income Taxed | $4.25 | |
 | Minnesota | Income Taxed | $9.85 | |
 | Mississippi | Income Taxed | $4 | |
 | Missouri | Income Taxed | $4.70 | |
 | Montana | Income Taxed | $5.65 | |
 | Nebraska | Income Taxed | $4.55 | |
 | New Jersey | Income Taxed | $10.75 | |
 | New Mexico | Income Taxed | $5.90 | |
 | New York | Income Taxed | $10.90 | |
 | North Carolina | Income Taxed | $3.99 | |
 | North Dakota | Income Taxed | $2.50 | |
 | Ohio | Income Taxed | $2.75 | |
 | Oklahoma | Income Taxed | $4.50 | |
 | Oregon | Income Taxed | $9.90 | |
 | Pennsylvania | Income Taxed | $3.07 | |
 | Rhode Island | Income Taxed | $5.99 | |
 | South Carolina | Income Taxed | $6 | |
 | Utah | Income Taxed | $4.50 | |
 | Vermont | Income Taxed | $8.75 | |
 | Virginia | Income Taxed | $5.75 | |
 | West Virginia | Income Taxed | $4.82 | |
 | Wisconsin | Income Taxed | $7.65 |
States With No Income Tax
Some states do not impose a state-level income tax on personal earnings, meaning wages and salaries are not taxed by the state. In these states, residents are not required to pay state income taxes on earned income.
States with no income tax include Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming. While these states do not tax personal income, they may rely on other forms of revenue such as sales taxes, property taxes, or business taxes.
States With Limited Income Taxes
Some states do not tax wages but impose taxes on certain types of investment income, such as interest, dividends, or capital gains. These systems differ from traditional income taxes by targeting specific forms of income rather than broad personal earnings.
States with limited income taxes include New Hampshire and Washington. New Hampshire taxes interest and dividend income, though this tax is being phased out, while Washington taxes capital gains income but does not tax wages.
States That Tax Income
Most U.S. states impose a state income tax on personal earnings. These taxes may be structured as progressive systems with multiple brackets or as flat-rate taxes, depending on the state.
States that tax income include Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Virginia, West Virginia, and Wisconsin. In these states, residents are generally required to pay taxes on wages and other forms of earned income.
Key Differences in State Income Tax Systems
State income tax systems vary in how they calculate and apply taxes to personal income. Some states use progressive tax structures with multiple income brackets, while others apply a flat tax rate to all income levels.
In addition to income taxes, states may rely on other revenue sources such as sales taxes, property taxes, or taxes on specific types of income like capital gains or dividends. As a result, overall tax structures can differ significantly even among states with similar income tax policies.
