One thing you can count on in the U.S. is taxes. There are taxes on the paycheck you earn, the items you buy, retirement income, the house you own, and inheritances. They're about as unavoidable as rush-hour traffic in New York City.
To be fair, taxes are a necessary evil to ensure public services get funded, but that doesn't change most people's disdain for them. The good news, though, is that some U.S. citizens will be able to avoid income taxes because of the states they live in. Let's take a look at which states those are.
Image source: Getty Images.
The states without an income tax
As of the end of 2025, there are eight states without income taxes:
- Alaska
- Florida
- Nevada
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
You'll often find Washington on lists like these as well. It's true that Washington charges no general income tax on most of its residents. However, for those who have income from capital gains exceeding $278,000 on most assets (excluding real estate), the excess gain is subject to a 7% state tax.
An important thing to note is that states still need reliable revenue sources, and without income tax, they have to compensate somehow. This typically means higher taxes in other places. For example, Texas and New Hampshire have higher property taxes than most states; Tennessee has one of the highest sales taxes in the country (7% on most items); and Nevada has leaned on heavy tourism and gaming taxes.
You can't avoid Uncle Sam regardless of your state
The good news is that these states also do not tax retirement income, including your 401(k), IRAs, pensions, and Social Security benefits.
The bad news is that if your state does not have an income tax, it doesn't save you from federal taxes. Beginning in 2026, here are the federal tax brackets:
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 |
| 12% | $12,401 to $50,400 | $24,801 to $100,800 | $17,701 to $67,450 |
| 22% | $50,401 to $105,700 | $100,801 to $211,400 | $67,451 to $105,700 |
| 24% | $105,701 to $201,775 | $211,401 to $403,550 | $105,701 to $201,750 |
| 32% | $201,776 to $256,225 | $403,551 to $512,450 | $201,751 to $256,200 |
| 35% | $256,226 to $640,600 | $512,451 to $768,700 | $256,201 to $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Source: IRS.
A state's income tax rules shouldn't be the sole reason you choose to live somewhere, but it's well worth considering when deciding where you can stretch your money the farthest. This is especially true for people in retirement with a fixed income.
