States With No Income Tax
Nine states charge no income tax, meaning you keep more of your paycheck:
- Alaska - No income tax, but high cost of living
- Florida - No income tax, warm climate, popular for retirees
- Nevada - No income tax, tourism-based economy
- New Hampshire - No tax on wages, but taxes dividends and interest
- South Dakota - No income tax, low cost of living
- Tennessee - No income tax since 2021
- Texas - No income tax, but high property taxes
- Washington - No income tax, but high sales tax
- Wyoming - No income tax, low cost of living
Highest Tax States
These states have the highest marginal tax rates, resulting in lower take-home pay:
- California - Up to 13.3% (highest marginal rate in the nation)
- Hawaii - Up to 11%
- New York - Up to 10.9% (plus NYC local taxes)
- New Jersey - Up to 10.75%
- Oregon - Up to 9.9%
Local City Taxes
Some cities charge additional income taxes on top of state taxes:
- New York City - Up to 3.876%
- Philadelphia - 3.79%
- San Francisco - 1.5%
- Detroit - 2.4%
- Columbus, OH - 2.5%
Beyond Income Tax
When comparing states, consider total tax burden, not just income tax:
- Property taxes: Texas and New Jersey have some of the highest
- Sales taxes: Tennessee and Louisiana have combined rates over 9%
- Cost of living: Housing, healthcare, and insurance vary widely
Key Takeaways
- Nine states have no income tax
- California has the highest marginal rate at 13.3%
- Local city taxes can add an additional 1-4%
- Consider total tax burden, not just income tax
Frequently Asked Questions
Find answers to common questions about your taxes and our calculator.
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