Income/Wages Taxes
No Income Tax States 2026
Is Income Taxed
No Income Tax
Taxes Income
Variable
State | Is Income Taxed↓ | Highest Bracket | Notes | |
|---|---|---|---|---|
 | Alaska | No Income Tax | ||
 | Florida | No Income Tax | ||
 | Nevada | No Income Tax | ||
 | 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 | ||
 | Wyoming | No Income Tax | ||
 | New Hampshire | Variable | 4% | New Hampshire taxes only interest and dividend income (at 5%). This policy will phase out with a 1% reduction each year, starting with a drop to 4% in 2023, and disappear entirely after the 2026 tax year. |
 | Washington | Variable | 7% | Washington taxes only capital gains income. |
 | Alabama | Taxes Income | 5% | |
 | Arizona | Taxes Income | 2.5% | |
 | Arkansas | Taxes Income | 4.9% | |
 | California | Taxes Income | 13.3% | |
 | Colorado | Taxes Income | 4.4% | |
 | Connecticut | Taxes Income | 6.99% | |
 | Delaware | Taxes Income | 6.6% | |
 | Georgia | Taxes Income | 5.75% | |
 | Hawaii | Taxes Income | 11% | |
 | Idaho | Taxes Income | 5.8% | |
 | Illinois | Taxes Income | 4.95% | |
 | Indiana | Taxes Income | 3.15% | |
 | Iowa | Taxes Income | 6% | |
 | Kansas | Taxes Income | 5.7% | |
 | Kentucky | Taxes Income | 4.5% | |
 | Louisiana | Taxes Income | 4.25% | |
 | Maine | Taxes Income | 7.15% | |
 | Maryland | Taxes Income | 5.75% | |
 | Massachusetts | Taxes Income | 9% | |
 | Michigan | Taxes Income | 4.25% | |
 | Minnesota | Taxes Income | 9.85% | |
 | Mississippi | Taxes Income | 5% | |
 | Missouri | Taxes Income | 4.95% | |
 | Montana | Taxes Income | 6.75% | |
 | Nebraska | Taxes Income | 6.64% | |
 | New Jersey | Taxes Income | 10.75% | |
 | New Mexico | Taxes Income | 5.9% | |
 | New York | Taxes Income | 10.9% | |
 | North Carolina | Taxes Income | 4.75% | |
 | North Dakota | Taxes Income | 2.9% | |
 | Ohio | Taxes Income | 3.99% | |
 | Oklahoma | Taxes Income | 4.75% | |
 | Oregon | Taxes Income | 9.9% | |
 | Pennsylvania | Taxes Income | 3.07% | |
 | Rhode Island | Taxes Income | 5.99% | |
 | South Carolina | Taxes Income | 6.5% | |
 | Utah | Taxes Income | 4.85% | |
 | Vermont | Taxes Income | 8.75% | |
 | Virginia | Taxes Income | 5.75% | |
 | West Virginia | Taxes Income | 6.5% | |
 | Wisconsin | Taxes Income | 7.65% | |
 | United States | 6.23% |
State Income Tax A tax imposed by a state on individual earnings, typically based on income brackets or a flat rate.
No Income Tax State A state that does not tax personal wage income at the state level.
Capital Gains / Investment Tax Taxes applied to income from investments, such as interest, dividends, or capital gains.
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.
