9 States With No Income Tax in 2026: Full List
Quinn Moran · Published · Updated
Nine states have no income tax on wages in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Washington is the partial exception, with a 7% tax on long-term capital gains above $278,000 (2025 figure) and a 9.9% top rate on gains over $1 million, and New Hampshire repealed its interest and dividends tax from 2025. Moving to one does not end your old state's claim on its own: you still have to show the move is real and your day counts support it.
On this page
State taxes can have a major impact on your finances. Some U.S. states and territories are often considered domestic tax havens because they offer low or no income tax and favorable overall tax burdens. If you spend time in multiple locations or plan to move to a tax-friendly place, tracking your residency days and planning your tax status carefully is essential.
This guide covers the most tax-friendly U.S. states and territories and explains why tax residency tracking matters.
What Makes a State or Territory a Tax Haven?
In the U.S., a tax haven typically refers to a place with:
- No state income tax or very low income tax
- Low overall tax burden
- Favorable residency rules
- Minimal estate or inheritance taxes
- Business-friendly policies
For remote workers, retirees, snowbirds, and business owners, establishing residency in a low-tax location can lead to meaningful savings. High tax states may scrutinize residency claims, especially after a move.
Which states have no income tax in 2026?
These nine are the primary U.S. tax haven states for individuals. Each one has a full residency guide: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
Florida
- No state income tax
- No estate tax
- No inheritance tax
- Florida is popular with retirees and snowbirds.
- Documentation matters if you spend time elsewhere.
Texas
- No state income tax
- Strong business environment
- A common destination for professionals and entrepreneurs.
Nevada
- No state income tax
- Business-friendly policies
- Often chosen by people moving from high-tax states.
Tennessee
Tennessee has eliminated taxes on earned and investment income, making it a tax-friendly choice for many residents.
Wyoming
- No state income tax
- Low overall taxes
- Wyoming is often ranked among the most tax-friendly states.
South Dakota
- No state income tax
- Simple residency requirements
- South Dakota is also popular for full-time travelers and RV residents.
Alaska
- No state income tax
- No statewide sales tax
- Alaska has unique rules and benefits for residents.
Washington
- No tax on wages or other ordinary income
- A 7% excise tax on long-term capital gains above an inflation-adjusted standard deduction ($278,000 for 2025), with an additional 2.9% on gains above $1 million from 2025, for a 9.9% top rate
- Real estate and retirement-account assets are exempt from the capital gains tax.
New Hampshire
- No tax on wages
- The 3% interest and dividends tax was phased out and repealed, effective for tax years beginning on or after January 1, 2025, so New Hampshire now taxes no personal income of any kind.
Tax-friendly U.S. territories
Some U.S. territories can offer significant tax advantages for people who qualify as bona fide residents. These places often have special federal tax rules in addition to local incentives, and they tend to have strict physical presence requirements.
Puerto Rico
Puerto Rico is one of the best-known U.S. tax havens. Certain residents may qualify for favorable tax and capital gains incentives, but strict residency rules apply. See the Act 60 183-day presence test.
U.S. Virgin Islands
The U.S. Virgin Islands offers programs that can reduce taxes for qualifying residents. Residency requirements must be followed carefully.
Guam and Northern Mariana Islands
These territories operate under mirror tax systems similar to the U.S. and may offer local incentives depending on residency and business activity.
Why Tax Residency Tracking Matters
Moving to a tax-friendly place does not automatically make you a tax resident there. Many states audit former residents to confirm the move is real and that day counts support the claim.
Common questions include:
- How many days did you spend in each state or territory?
- Where was your primary home?
- Where did you work?
- Where are your financial accounts and key ties?
- Where did you spend major holidays and events?
Without accurate records, proving residency can be difficult. The state lookup shows the residency test your former state uses.
Why Tracking Days Is a Core Part of Tax Planning
Day counts are central to many residency tests. Spending too many days in a former high-tax state can trigger residency status. Territories often require minimum physical presence. Tracking consistently helps you stay within thresholds and reduces stress during filing. Our 183-day calculator checks a year against the common day thresholds.
How iReside Helps
iReside helps individuals track residency days across multiple states and territories. Instead of relying on calendars or spreadsheets, iReside helps you maintain organized records throughout the year, making it easier to:
- Monitor days in each location
- Stay within thresholds
- Keep clear documentation
- Prepare for tax filing
- Support residency claims if questions arise
Final Thoughts
Florida, Texas, Nevada, South Dakota, Wyoming, Washington, and New Hampshire are popular low-tax states, though Washington taxes high capital gains. Territories like Puerto Rico can be attractive for certain residents, but rules are strict. Tax planning for these locations depends on accurate tax residency tracking and good documentation. iReside provides a simple way to track your residency days and stay organized year-round.