9 States with No Income Tax — Lower Your Tax Bills by Moving to These States

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Even with the recent extension of the 2017 Tax Cuts and Jobs Act offering some relief at the federal level, state income taxes can eat into Americans’ earnings. State income tax can be as high as 13.3% in California, while other states take between 1% and 10%, according to this report by DailyPassport.com.

For those who are retired, work remotely or otherwise have flexibility to move, you can keep more of your money in the bank by moving to one of these eight places with no state income tax.

New Hampshire

New Hampshire has no state income tax but, until 2025, the state levied a 3% tax on interest and dividends. For serious investors and retirees, that 3% could be substantial. For the 2025 tax year, however, New Hampshire residents no longer have to file any state income tax returns.

Washington

Like New Hampshire, Washington doesn’t have a personal income tax. But it does have a capital gains tax of 7% on stocks, bonds and other securities. This makes filing returns tricky for retail traders, but helps keep state tax liability small since you don’t have to pay state tax on earned income.

Alaska

Alaska hasn’t collected personal income tax from residents since 1949, even before the wintry wonderland became a state. The Trans-Alaska Pipeline brings in enough revenue to help cover costs, according to Daily Passport.

Texas

Texas has no state income tax, which makes it desirable to retirees and tech entrepreneurs, alike. The state does institute a 6.25% state sales tax on most purchases and a 1.47% property tax.

Tennessee

Like Texas, Tennessee’s warm climate, laidback lifestyle and lack of state income tax makes it desirable to retirees. The state also has another element that makes it enticing to older Americans; There’s no estate or inheritance tax, which means you can transfer generational wealth without a hefty tax bill.

Florida

Another sunny retirement destination, Florida does not impose personal income taxes on residents — and hasn’t since 1968. It also doesn’t collect estate or inheritance taxes. However, it does have a 0.74% property tax on owner-occupied homes, a 6% state sales tax, and various local sales taxes, along with taxes on fuel and cigarettes, according to The Tax Foundation.

Wyoming

Since it became a state in 1890, Wyoming has never collected personal income tax from residents. However, there is a 4% state sales tax, along with various local sales taxes.

South Dakota

South Dakota has no state income tax, but it does impose a 4.2% sales tax and a 1.01% property tax rate.

Nevada

You can win big, financially, in Nevada, without ever visiting Las Vegas. The state has no personal or corporate income tax. Where does it get its operating capital and money for public projects? A portion of it comes from gaming revenue the casinos make, along with gaming licensing fees.

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