No income tax · 2026
States with no income tax, ranked by property tax
Nine US states levy no individual income tax. They’re often the first stop for people researching tax-friendly relocation — but the property tax math varies wildly. Wyoming charges 0.55%; Texas charges over 1.6%.
| # | State | Avg effective rate | Median annual bill | Bill on $400k home |
|---|---|---|---|---|
| 1 | TNTennessee | 0.57% | $1,407 | $2,281 |
| 2 | WYWyoming | 0.57% | $1,728 | $2,288 |
| 3 | NVNevada | 0.59% | $2,243 | $2,360 |
| 4 | FLFlorida | 0.91% | $2,970 | $3,639 |
| 5 | WAWashington | 0.97% | $4,697 | $3,876 |
| 6 | AKAlaska | 1.06% | $3,360 | $4,236 |
| 7 | SDSouth Dakota | 1.17% | $2,907 | $4,691 |
| 8 | TXTexas | 1.67% | $4,630 | $6,690 |
| 9 | NHNew Hampshire | 1.91% | $7,935 | $7,640 |
The trade-off most movers overlook
Removing income tax has to be paid for somewhere. Some states (Texas, New Hampshire) recover it primarily through property tax — both rank among the highest property tax states in the country. Others (Wyoming, Tennessee, Florida) keep property taxes moderate by leaning on severance taxes, sales tax, or tourism revenue.
The simplest framework: for a $400,000 home, your annual property tax in Tennessee would be roughly $2,281, while in New Hampshire it’d be $7,640. That’s a $5,359/year difference on the same home value.
Whether the trade is worth it depends on your income. A $200,000 earner moving from California (top rate 13.3%) to Texas (no income tax) saves $20,000+/year on income tax, easily covering the higher property bill. A retiree on a $50,000 fixed income making the same move sees little income-tax savings and shoulders a real property-tax increase.
How to read this
Avg effective rate is what the typical homeowner actually pays after exemptions, caps, and rollbacks. Median annual bill reflects both rate and local home values. Bill on $400k home normalizes for home value — the cleanest direct comparison.
To dig deeper: compare two states side by side, or browse the full state ranking.