Which states have no income tax?

In the United States, in addition to the federal income tax, most states collect their own state income tax on wages. A minority of states, however, do not tax earned income, which increases the net pay of those who live and work there.

For those on an H-1B evaluating where to settle, this matters for the household budget: two jobs with the same gross salary can yield different net amounts depending on the state. Some states also treat income from interest and dividends differently, even when they do not tax wages.

The key detail is that each state’s tax policy changes through legislation and is not uniform, so any fixed list quickly becomes outdated. It is worth checking the current situation directly at the source before making a decision based on tax considerations.

To confirm, consult the Department of Revenue of the specific state and the IRS for the federal side, or speak with an accountant before deciding where to live.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.