No Income Tax States: How Much More Do You Actually Keep?
Nine states have no income tax. Moving from California to Texas on the same salary can put $15,000–$30,000 more in your pocket every year. Here is the full breakdown.
The Nine No-Income-Tax States
As of 2026, nine US states levy no personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
For high earners, the difference is substantial. A software engineer earning $150,000 in California pays 9.3% state income tax — $13,950 annually. The same engineer in Texas pays $0.
Real Numbers: California vs Texas
On a $150,000 salary:
- California: $13,950 in state income tax → $136,050 take-home (before federal)
- Texas: $0 in state income tax → $150,000 take-home (before federal)
Cost of Living Matters Too
The tax advantage is only part of the equation. San Francisco has a cost of living index of 224 vs Houston at 91. A $130,000 salary in Houston has the purchasing power equivalent of $186,000 in San Francisco when both tax and cost of living are factored in.
Where No-Tax States Win Most
The no-tax advantage is largest for:
- High earners ($100K+) where state tax represents the most dollars
- Remote workers who can live anywhere
- Retirees on investment income
Trade-offs to Consider
No-income-tax states often make up revenue through higher property taxes (Texas), higher sales taxes (Tennessee, Nevada), or natural resource revenues (Alaska). The net benefit depends on your spending patterns and property ownership.