The 9 US States with No Personal Income Tax in 2026
Living and working in a state without personal income tax can save an individual anywhere from $2,500 to over $10,000 every single year compared to high-tax states like California, New York, or New Jersey. The following 9 states do not tax earned wage income:
No state individual income tax on wages or salary.
No state individual income tax on wages or salary.
No state individual income tax on wages or salary.
No state earned wage income tax (interest/dividend tax phased out).
No state individual income tax on wages or salary.
No state personal income tax on earned wages or salaries.
No state personal income tax on employee wages or salaries.
No state individual income tax on employee paychecks.
No state individual income tax on wages or salary.
How Your Take-Home Pay is Calculated
Your paycheck is calculated through a sequential series of statutory deductions governed by federal and state tax codes:
Based on IRS Publication 15-T and your W-4 elections. The 2026 standard deduction is $15,000 for Single and $30,000 for Married Filing Jointly, followed by marginal brackets of 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
Federal Insurance Contributions Act: 6.2% Social Security on income up to the 2026 limit of $184,500, and 1.45% Medicare on all earnings (plus 0.9% surtax for high earners exceeding $200k).
Depending on your state of residence and employment, state withholding is computed either as $0 (no tax states), a flat single rate (e.g. 4.95% in IL, 3.07% in PA), or graduated tiers (e.g. up to 13.3% in CA or 10.9% in NY).
Contributions made toward employer-sponsored 401(k) retirement plans and Section 125 health insurance plans bypass federal and state taxable wage bases, providing immediate dollar-for-dollar tax relief.
US Paycheck & Payroll Taxes FAQ
Which US states have no personal state income tax?
There are 9 states with zero state income tax on wage earnings: Texas, Florida, Nevada, Washington, Tennessee, Wyoming, South Dakota, Alaska, and New Hampshire. Workers in these states take home a significantly higher percentage of their paycheck.
What is the 2026 Social Security wage cap?
For 2026, the Social Security wage base limit is $184,500. Once your cumulative gross earnings pass this threshold in a calendar year, the 6.2% Social Security withholding drops to 0% for the rest of that year.
How does pay frequency affect my take-home pay?
Pay frequency (Annual, Monthly [12], Semi-Monthly [24], Bi-Weekly [26], Weekly [52]) divides your annual salary and annual tax obligations across your payment intervals. While your annual total tax remains identical, bi-weekly pay provides 26 paychecks per year, resulting in two “3-paycheck months” each year.