State income tax can be the difference between keeping or losing thousands of dollars per year. Here's what you need to know.
States With No Income Tax
Nine states charge zero income tax on wages: 1. Alaska 2. Florida 3. Nevada 4. New Hampshire (dividends/interest only) 5. South Dakota 6. Tennessee 7. Texas 8. Washington 9. Wyoming
But Wait — It's Not That Simple
States without income tax often make up revenue through: - Higher property taxes (Texas, New Hampshire) - Higher sales taxes (Tennessee, Washington) - Severance taxes on natural resources (Alaska)
The Real Comparison
For a single filer earning $100,000:
| State | Income Tax | Property Tax (median home) | Sales Tax | Total Tax Burden |
|---|---|---|---|---|
| Texas | $0 | $3,200 | 6.25% | Moderate |
| California | $6,000+ | $2,800 | 7.25%+ | High |
| Florida | $0 | $2,100 | 6% | Low-Moderate |
| New York | $5,500+ | $4,200 | 4%+ | Very High |
| Tennessee | $0 | $1,400 | 7% | Low |
Our Recommendation
Don't move solely for tax savings. Factor in: job market, cost of housing, quality of life, and proximity to family. Use our tax calculator to model your specific situation.