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USA States With No Income Tax or Sales Tax

Updated on June 17, 2026

Some U.S. states avoid one of the major state-level taxes people notice most: individual income tax or statewide sales tax. These tax structures can affect take-home pay, retirement planning, shopping costs, relocation decisions, and business operations.

No State Income Tax

9 states

These states do not levy a broad tax on wage income. Other taxes and local costs still vary by state.

No Statewide Sales Tax

5 states

These states do not have a general statewide sales tax, though some local or specific taxes may still apply.

Income Tax

U.S. States With No State Income Tax

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, New Hampshire

There are nine U.S. states that do not impose a broad state income tax. This can provide meaningful savings for residents, especially higher earners, retirees, and business owners. State budgets are funded through other revenue sources, including sales taxes, property taxes, natural resource taxes, excise taxes, and fees.

Alaska: Relies heavily on natural resource revenue and has no broad state income tax.
Florida: Popular with retirees and funded through sources such as sales tax, tourism, and real estate activity.
Nevada: Uses revenue from tourism, entertainment, gaming, and sales taxes.
South Dakota: Relies on sales taxes, fees, and business-friendly tax structures.
Tennessee: Does not tax wage income and no longer taxes interest and dividend income.
Texas: Uses sales taxes, property taxes, and business taxes instead of state income tax.
Washington: Has no broad wage income tax, though other state taxes may apply.
Wyoming: Uses mineral extraction revenue, property taxes, and fees.
New Hampshire: Does not tax wage income, and its tax on interest and dividends has been repealed.

Sales Tax

U.S. States With No Statewide Sales Tax

Alaska, Delaware, Montana, New Hampshire, Oregon

There are five U.S. states that do not impose a general statewide sales tax. This can lower the purchase price of goods and services, but the overall tax picture still depends on local taxes, property taxes, excise taxes, income taxes, and the specific goods or services purchased.

Alaska: Has no state-level sales tax, though some local governments may impose sales taxes.
Delaware: Does not impose a general sales tax and raises revenue through other taxes and fees.
Montana: Has no general statewide sales tax and relies on other revenue sources.
New Hampshire: Has no general sales tax, though specific taxes apply to items such as meals, rooms, and rentals.
Oregon: Has no statewide sales tax and relies more heavily on income taxes and other revenue sources.

States without a sales tax may still have higher costs in other areas. Before moving, investing, or making a major purchase, compare the full tax picture: income tax, sales tax, property tax, local taxes, vehicle taxes, business taxes, and cost of living.