States With No Individual Income Tax in 2026

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no broad-based individual income tax in 2026. New Hampshire's former tax on interest and dividends income was fully repealed for 2025 onward, and Tennessee's Hall tax on interest and dividends was fully repealed before 2026 — both states now belong on this list for the same reason as the others.

Washington has no broad tax on wages, salaries, pensions, or ordinary IRA distributions — the vast majority of retirement and employment income most people care about. It separately levies a state capital-gains excise tax on certain long-term gains above a statutory exemption amount, which is narrower than a general income tax and doesn't apply to most residents' everyday income.

Not necessarily. States without an individual income tax typically rely more heavily on sales tax, property tax, excise taxes, or (for energy-producing states) mineral and severance revenue to fund services. Depending on your income level, homeownership, and spending pattern, your total state and local tax burden in a no-income-tax state can be higher or lower than in a state that does levy income tax.

Yes, at the state level — with no broad individual income tax, there's no state tax on Social Security benefits, pensions, or IRA/401(k) distributions in any of these states (Washington's capital-gains excise tax is the one narrow exception, and it doesn't reach ordinary retirement distributions). Federal taxation of Social Security and retirement income still applies regardless of which state you live in.

Run the full comparison first. Property tax rates, sales tax rates, cost of living, healthcare access, and — for retirees — how the state you're leaving treats retirement income can matter as much as or more than the state income-tax difference. A no-income-tax state is a strong default worth investigating, but it isn't automatically the lowest-total-tax choice for every household.