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The short answer
In 2026, eight states levy no individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Washington does not tax wages but taxes capital gains, at 7% and 9% above $1 million. Federal income tax still applies everywhere, and these states raise money in other ways, so compare the whole cost of living, not just the tax line.
The list for 2026
According to the Tax Foundation's table of state individual income tax rates for 2026 (published February 2026):
| State | Tax on wages | Note |
|---|---|---|
| Alaska | None | |
| Florida | None | |
| Nevada | None | |
| New Hampshire | None | Its interest and dividends tax was repealed as of 2025 |
| South Dakota | None | |
| Tennessee | None | |
| Texas | None | |
| Wyoming | None | |
| Washington | None | Taxes capital gains at 7%, and 9% on gains above $1 million; a separate 0.58% WA Cares payroll premium applies to wages |
For most Nigerian workers, whose income is mainly wages, the practical list is all nine: none of them takes state income tax out of a payslip, although Washington's WA Cares premium is a payroll deduction.
What it is worth: a worked comparison
Example only. Take a single nurse earning $80,000. In Texas or Florida her state income tax is $0. In Georgia, which the same Tax Foundation table lists at a flat 5.19% for 2026, and which gives a $12,000 standard deduction to single filers according to its Department of Revenue, the rough figure is ($80,000 − $12,000) x 5.19% = $3,529.20 a year, about $294 a month, before any other Georgia adjustments.
In Washington the same nurse pays no income tax on wages, but the WA Cares premium the Tax Foundation notes, 0.58% of wages, would be about $464 a year on $80,000. Still far lower than the Georgia figure, and it funds WA Cares long-term care insurance.
That is real money. It can also be overtaken by one line of the budget: a few hundred dollars a month more in rent, car insurance or childcare wipes it out.
What 'no income tax' does not mean
- No federal tax relief. Federal income tax, Social Security and Medicare are deducted the same way in every state.
- Other taxes do the work. States without an income tax typically lean more on sales tax, property tax or other levies. A homeowner in a high property-tax area can pay more in total than a renter in an income-tax state.
- Local taxes can still apply. Check city and county taxes where you will live and work.
- Your old state may still tax you. In the year you move, you usually file a part-year return to the state you left, for the months you lived there.
How to compare two states properly
- Write your expected salary in each place; pay often differs between states for the same role.
- Subtract state income tax using each state's own revenue department rates.
- Add rent or mortgage for the area you would actually live in, plus property tax if buying.
- Add car insurance, which varies widely by location.
- Add childcare if you need it.
- Add the cost of trips home: flights to Lagos or Abuja from some airports cost more than from others, and that changes the sums for families who travel every December.
Whatever is left at the bottom is the number that matters. Our pieces on moving from Houston to Atlanta and moving from New York to Texas run these sums for two common moves.
Moving into a no-tax state mid-year
If you move from an income-tax state to Texas or Florida in, say, September, the saving starts from your move date, not 1 January. You file a part-year return to the old state for January to August, and nothing to the new one. Two mistakes are common: forgetting to switch payroll withholding, so the old state keeps taking tax from pay earned after the move; and keeping an old address on file with the employer, which can make the old state treat you as still resident. Change both on the day you move, and keep a copy of your new lease and first utility bill as proof of the date.
Things specific to newcomers
Your choice of state also decides where you will get a driver's licence, register a car, and build a rental history, so a move after your first year means doing those again. If you are on a work visa, your state is set by your employer's location, and a remote role may be tied to a work state for payroll. Students on F-1 visas usually live where their school is.
The state also matters for Nigerian income. Georgia's Department of Revenue, for example, says its tax depends on federal adjusted gross income, and US tax residents generally report worldwide income, including Nigerian rent or interest, on the federal return. Living in a no-income-tax state removes the state layer on that income but not the federal one. Our guide on reporting Nigerian property to the IRS covers the federal side.
Where Pryme fits
Wherever you settle, a Pryme account holds dollars and naira together, so money you send home or receive from Nigeria does not have to be converted until you choose with Swap; the app shows the rate and the fee before you approve. See the multicurrency account.
Questions people ask
Which states have no state income tax in 2026?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Washington taxes capital gains but not wages.
Does New Hampshire tax interest and dividends?
Not any more. The Tax Foundation reports the tax was repealed as of 2025.
Do I still pay federal tax in Texas or Florida?
Yes. Federal income tax, Social Security and Medicare apply in every state.
Is it cheaper to live in a no-income-tax state?
Not always. Sales tax, property tax, rent and insurance can outweigh the income tax saving, so compare the full budget.
Sources
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (17 Feb 2026) · accessed Oct 2026
- Georgia Department of Revenue, Residency filing requirements (undated, viewed Oct 2026) · accessed Oct 2026
- Georgia Department of Revenue, Filing state individual income tax (undated, viewed Oct 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.