9 States With No Income Tax in 2025: Complete Guide
The 9 States With No Income Tax
In 2025, nine US states do not levy a state income tax on wages and salaries:
- Alaska
- Florida
- Nevada
- New Hampshire (taxes dividends and interest only)
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
How Much Can You Save?
The savings depend on your income level and which state you are comparing against. Here are examples for a $75,000 salary (single filer):
| Current State | State Tax | Annual Savings in No-Tax State |
|---|---|---|
| California | ~$2,735 | $2,735 |
| New York | ~$3,470 | $3,470 |
| New Jersey | ~$2,417 | $2,417 |
| Oregon | ~$5,711 | $5,711 |
| Minnesota | ~$3,528 | $3,528 |
Important Considerations
Living in a no-income-tax state does not eliminate all taxes. You still pay:
- Federal income tax (same everywhere)
- Social Security (6.2% up to $176,100)
- Medicare (1.45% plus 0.9% on income over $200,000)
- Property taxes (can be higher in no-income-tax states)
- Sales tax (varies by state; some no-income-tax states have higher sales taxes)
New Hampshire Special Case
While New Hampshire has no tax on wages, it does tax interest and dividend income at 3% (this rate is being phased out and will reach 0% by 2027). If you earn significant investment income, factor this into your calculations.
Washington Note
Washington state has no income tax but does have a 7% capital gains tax on gains over $270,000. This does not affect wage earners.
Use our state comparison tool to see the exact difference for your salary, or try any of our state calculators for a detailed breakdown.
