Living in a state that does not tax wages does not mean your paycheck arrives untouched. Federal income tax, Social Security and Medicare still come out. What you skip is state income-tax withholding — and that gap can be thousands of dollars a year compared with high-tax states. It is not the whole cost-of-living story.
This guide uses 2026 figures already wired into our paycheck calculator. For the full multi-state tables, open the dedicated hub: paychecks in states with no income tax.
Which taxes still apply
On wages in Florida, Texas, Nevada, South Dakota, Tennessee, Wyoming, Alaska and New Hampshire (the eight states on our no-income-tax hub), a typical paycheck still loses:
- Federal income tax withholding under the 2026 brackets and standard deduction (IRS Rev. Proc. 2025-32)
- Social Security: 6.2% on wages up to the $184,500 wage base (IRS Topic 751)
- Medicare: 1.45% on all covered wages, plus Additional Medicare Tax withholding of 0.9% on wages above $200,000 in a calendar year
Example: a single filer earning $75,000, paid every two weeks, with no 401(k). In Texas (and the other hub states without a wage tax) annual take-home is about $61,593 (~$2,369 per paycheck). The pieces are about $7,670 federal income tax, $4,650 Social Security and $1,088 Medicare — state income tax $0.
Washington also does not tax wages, but Washington paychecks can carry state payroll premiums (Paid Family and Medical Leave and WA Cares) that our calculator does not subtract. Use Washington’s own paycheck page and the note on that state for those lines.
What a state income tax would have taken
Of the 50 states and DC, most tax wages. On the same $75,000 single-filer example, state income tax in the taxing jurisdictions runs from about $182 (North Dakota) to about $5,733 (Oregon) in our model, with a median near $2,722. California lands around $2,788 of state tax and about $58,805 net — roughly $2,788 less take-home than Texas on identical federal and FICA lines.
That difference is exactly the state tax: federal income tax and FICA are the same everywhere in these examples. Local income taxes, which some cities levy, are mostly outside the calculator and can widen the gap further.
Other state taxes that may offset the difference
Skipping wage tax is not the same as a low overall tax bill. Many no-income-tax states lean on sales taxes, and local rates vary widely. Alaska has no state sales tax but allows local ones; New Hampshire has neither a wage income tax nor a general state sales tax; Texas and Tennessee combine no wage tax with relatively high combined state-and-local sales taxes. Property taxes, vehicle fees and insurance costs also differ by metro area.
Use the sales tax calculator (and each state’s sales-tax page) for purchase math. For a moving decision, price housing, insurance and everyday purchases — not paycheck net alone. The Tax Foundation’s midyear sales-tax tables are the source behind our sales-tax rates.
Payroll premiums and other paycheck lines
Even without state income tax you may see:
- Voluntary benefits (health, dental, vision, HSA/FSA)
- Retirement contributions (traditional or Roth 401(k))
- Garnishments or union dues
- State-specific payroll premiums (Washington’s are the clear example among non-wage-tax states)
Enter benefits and 401(k) percentages in the paycheck calculator so net pay reflects what you actually take home. Pre-tax 401(k) contributions lower federal taxable wages but usually not Social Security or Medicare wages.
Comparing two states
- Open the no-income-tax states hub for the shared federal-only baseline across the eight states.
- Open a taxing state’s paycheck page (for example California or New York) with the same salary, filing status and pay frequency.
- Compare annual net, not just the headline tax rate.
- Layer sales tax, rent or mortgage, and insurance quotes for the cities you are choosing between.
- Re-check after a raise, marriage or move — filing status and state of residence change withholding.
For the annual federal bill alone, use the income tax calculator. For how each stub line works, see Understanding Your Take-Home Pay and How to Read Your Pay Stub.
When to check with the state department of revenue
Rules change. New Hampshire’s treatment of interest and dividends has evolved over time even while wages stay untaxed; Washington’s capital-gains tax and payroll premiums are easy to miss if you only read “no income tax” headlines. Before you relocate or accept an offer, confirm wage-tax status and any payroll premiums on the state revenue or workforce site, and verify your employer’s withholding setup.
Bottom line
No state wage tax raises take-home pay relative to high-tax states, but federal income tax and FICA never leave. Compare net pay on the paycheck calculator and the no-income-tax states page, then price sales tax, housing and insurance before calling a state “cheap.”