States With No Income Tax
U.S. states with no wage income tax as of 2025
| No Income Tax States | State Tax Rate | Notes |
|---|---|---|
| Alaska | 0% | No income tax; high property taxes in some areas |
| Florida | 0% | No income tax; sales tax 6-8% |
| Nevada | 0% | No income tax; high sales tax (8.23% average) |
| New Hampshire | 0% on wages | Taxes investment income at 3% (phasing out by 2027) |
| South Dakota | 0% | No income tax; sales tax 4.2% |
| Tennessee | 0% on wages | No income tax on wages as of 2021; investment income tax ended |
| Texas | 0% | No income tax; higher property taxes |
| Washington | 0% on income | Capital gains tax 7% above $250K threshold |
| Wyoming | 0% | No income tax; low sales tax |
A worker earning $100,000 in California (top marginal state rate 9.3-13.3%) pays approximately $6,500-$8,000 in California state income tax. The same worker in Texas pays $0. That’s $6,500-$8,000 more in take-home pay annually — or $130,000-$160,000 over 20 years, before considering property taxes and cost of living differences.
Highest State Income Tax States
Highest state income tax rates in the U.S. (2025)
| State | Top Marginal Rate | Income at Top Rate |
|---|---|---|
| California | 13.3% | Over $1 million ($72,999 for 9.3%) |
| Hawaii | 11.0% | Over $400,000 |
| New Jersey | 10.75% | Over $1 million |
| Oregon | 9.9% | Over $125,000 |
| Minnesota | 9.85% | Over $183,341 |
| Vermont | 8.75% | Over $213,150 |
| New York | 10.9% | Over $25 million ($6.85% starts at $17,150) |
How State Income Tax Affects Your Take-Home Pay
State income taxes are withheld from each paycheck in states that have them. Most states follow a similar structure to federal income tax: a standard deduction (or personal exemption), progressive brackets, and W-4 equivalent forms (sometimes the same federal W-4, sometimes state-specific). States with flat tax rates (like Illinois at 4.95% or Pennsylvania at 3.07%) have simpler calculations — every dollar of income is taxed at the same rate.
Calculate Your Take-Home Pay in Any State
Enter your salary and select your state to see exactly how state income taxes affect your net paycheck.