The 9 states with no income tax and how much you save. Includes effective tax savings calculations for every income level.
| # | State | State Tax Rate ▲ | Visual | Income | COL | Grade |
|---|---|---|---|---|---|---|
| #1 | Alaska | 0% | $77,800 | 127 | A+ | |
| #2 | Florida | 0% | $63,100 | 103 | A+ | |
| #3 | Nevada | 0% | $64,200 | 104 | A+ | |
| #4 | New Hampshire | 0% | $83,300 | 112 | A+ | |
| #5 | South Dakota | 0% | $62,100 | 91 | A+ | |
| #6 | Tennessee | 0% | $59,700 | 91 | A+ | |
| #7 | Texas | 0% | $67,300 | 93 | A+ | |
| #8 | Washington | 0% | $82,100 | 115 | A+ | |
| #9 | Wyoming | 0% | $65,000 | 95 | A+ | |
| #10 | Arizona | 2.5% | $65,600 | 103 | A | |
| #11 | North Dakota | 2.9% | $64,800 | 93 | A | |
| #12 | Pennsylvania | 3.07% | $67,600 | 94 | A | |
| #13 | Indiana | 3.15% | $58,600 | 90 | A | |
| #14 | Ohio | 3.99% | $59,300 | 89 | B+ | |
| #15 | Louisiana | 4.25% | $52,300 | 91 | B+ | |
| #16 | Michigan | 4.25% | $63,400 | 89 | B+ | |
| #17 | Arkansas | 4.4% | $52,100 | 84 | B+ | |
| #18 | Colorado | 4.4% | $80,200 | 105 | B+ | |
| #19 | Kentucky | 4.5% | $55,600 | 87 | B+ | |
| #20 | North Carolina | 4.5% | $61,000 | 95 | B+ | |
| #21 | Utah | 4.65% | $75,600 | 103 | B+ | |
| #22 | Oklahoma | 4.75% | $55,800 | 86 | B+ | |
| #23 | Illinois | 4.95% | $72,200 | 93 | B+ | |
| #24 | Missouri | 4.95% | $61,000 | 88 | B+ | |
| #25 | Alabama | 5% | $56,200 | 87 | B | |
| #26 | Massachusetts | 5% | $89,700 | 135 | B | |
| #27 | Mississippi | 5% | $46,500 | 83 | B | |
| #28 | West Virginia | 5.12% | $48,000 | 84 | B | |
| #29 | Georgia | 5.49% | $63,400 | 93 | B | |
| #30 | Kansas | 5.7% | $62,100 | 89 | B | |
| #31 | Maryland | 5.75% | $90,200 | 118 | B | |
| #32 | Virginia | 5.75% | $80,600 | 103 | B | |
| #33 | Idaho | 5.8% | $62,300 | 97 | B | |
| #34 | Nebraska | 5.84% | $66,500 | 91 | B | |
| #35 | Montana | 5.9% | $60,600 | 103 | B | |
| #36 | New Mexico | 5.9% | $53,000 | 91 | B | |
| #37 | Rhode Island | 5.99% | $71,200 | 109 | B | |
| #38 | Iowa | 6% | $63,200 | 90 | B | |
| #39 | South Carolina | 6.4% | $56,200 | 92 | B | |
| #40 | Delaware | 6.6% | $69,100 | 102 | B | |
| #41 | Connecticut | 6.99% | $83,800 | 121 | C | |
| #42 | Maine | 7.15% | $63,200 | 109 | C | |
| #43 | Wisconsin | 7.65% | $64,800 | 93 | C | |
| #44 | Vermont | 8.75% | $63,400 | 110 | D | |
| #45 | California | 9.3% | $84,900 | 142 | D | |
| #46 | Minnesota | 9.85% | $77,700 | 97 | D | |
| #47 | Oregon | 9.9% | $71,200 | 113 | D | |
| #48 | New Jersey | 10.75% | $87,700 | 121 | F | |
| #49 | New York | 10.9% | $75,900 | 139 | F | |
| #50 | Hawaii | 11% | $84,900 | 190 | F |
Based on our analysis of tax-free states across all 50 states, Alaska ranks #1 with 0%, while Hawaii ranks last at 11%. The national average is 5%.
States with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) generally perform well on affordability metrics due to higher effective take-home pay.
The gap between the best and worst state is significant: 11%. This means your choice of state can make a dramatic difference in your tax-free states. Use our tax calculator to run the numbers for your specific situation.
Alaska ranks #1 with 0%. Florida and Nevada round out the top 3.
Hawaii ranks last (#50) with 11%. New York and New Jersey are also among the worst.
The average across all 50 states is 5%. The median is 5%.
This data is calculated using the latest available median income, housing prices, cost of living indices, tax rates, and expense data for each state. Our methodology uses consistent formulas applied to all 50 states for fair comparison.