Nine US states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
For a $100,000 salary, living in a no-income-tax state versus California saves you roughly $5,500 per year. Versus New York, the saving is about $4,900. Over a 30-year career, that is $150,000 to $165,000 in tax savings — before considering investment growth on those savings.
However, states without income tax often make up revenue through other means. Texas has property taxes averaging 1.7% of home value — one of the highest in the country. A $400,000 home in Texas costs $6,800 per year in property tax versus about $3,000 in California.
Washington state has a 6.5% sales tax (plus local taxes bringing it to 10%+ in some cities). Florida's property taxes average 0.9%, which is moderate, but insurance costs are among the highest in the country.
New Hampshire has no income tax on wages but does tax interest and dividends. It also has high property taxes averaging 1.9%.
For remote workers, the tax benefit of living in a no-income-tax state is straightforward — you keep more of your paycheck. But for those considering a physical move, factor in the total cost of living including housing, property taxes, sales taxes, insurance, and cost of goods and services.
The states that offer the best overall tax picture for high earners tend to be Florida (no income tax, moderate property tax, no estate tax), Texas (no income tax, but high property tax), Nevada (no income tax, moderate property tax), and Wyoming (no income tax, very low property tax, small population).
Use our US take-home pay calculator to compare your take-home pay across all 50 states.