Nine States with No Income Tax

Your hard-earned money is safe from state income tax if you live in one of these states but watch out for other state and local taxes.

filed of wild flowers for states with no income tax
(Image credit: Getty Images)

It's no surprise that many people don't like paying income taxes. That's why some might consider moving to one of the nine states that don't have income tax. No income taxes means less money taken out of your hard-earned paycheck. And if you are retired, no income tax also means no tax on your Social Security benefits, withdrawals from your IRA or 401(k) plan, or payouts from your pension.

But, no state is perfect. States without an income tax still need money to pay for roads, schools, and other infrastructure, so residents have to pay other taxes (e.g., sales, property, and estate taxes). And sometimes those other state taxes can be on the high end. For example, states with no income tax often have median property tax rates that are among the ten highest rates in the country.  So, if you are thinking of moving to a state without an income tax, take note of some of the other taxes you will have to pay there. Maybe the grass isn't greener on the other side.


Average combined state and local sales tax values are accurate as of January 2023 and were compiled by the Tax Foundation. Property tax data is from 2021 and is based on information from the U.S. Census Bureau. Overall tax ratings are from the State-by-State Guide to Taxes on Middle-Class Families.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Sandra Block
Senior Editor, Kiplinger's Personal Finance

Block joined Kiplinger in June 2012 from USA Today, where she was a reporter and personal finance columnist for more than 15 years. Prior to that, she worked for the Akron Beacon-Journal and Dow Jones Newswires. In 1993, she was a Knight-Bagehot fellow in economics and business journalism at the Columbia University Graduate School of Journalism. She has a BA in communications from Bethany College in Bethany, W.Va.

With contributions from