US Retirement Tax
Best States to Retire With No Income Tax (2026)
Nine US states have zero state income tax. They don't all suit every retiree — property tax, sales tax, healthcare access, and climate change the ranking. Here's the honest comparison.
We sort by effective property tax rate (ascending) since retirees in no-income-tax states feel property tax more than anything else. Each card links to the full state retirement-tax guide with Social Security, pension, estate tax, and city-level cost of living.
Nevada
One of only four 'full freedom' tax-free states for retirees along with FL, TX, and WY: no income tax, no Social Security or retirement-income tax, no estate or inheritance tax. Property tax is low (0.55%) and capped at 3% annual growth. Combined sales tax is ~8.23%.
Wyoming
No state income tax, no Social Security or retirement income tax, no estate or inheritance tax, very low property and sales tax. Consistently ranked #1 or #2 most tax-friendly state for retirees.
Tennessee
Genuine no-income-tax state since the Hall Tax was eliminated in 2021. No tax on SS, pensions, 401(k)s, IRAs, capital gains, or interest. Low property tax (0.63%) with senior relief programs. High combined sales tax (~9.55%) is the one meaningful retiree cost.
Washington
No state income tax but a 7% capital gains tax on >$270K/yr gains and a low-threshold estate tax (~$2.2M). Attractive for retirees below the CG and estate thresholds.
Florida
The U.S. retiree-tax haven: no state income tax, no tax on Social Security or retirement income, no estate or inheritance tax, Save Our Homes 3% assessment cap, and easy domicile establishment. Homeowners insurance (not taxes) is the real retirement cost to model.
Alaska
No state income, sales, Social Security, or estate tax. Residents also receive an annual Permanent Fund Dividend ($1,702 in 2024).
South Dakota
No state income tax, no Social Security or pension tax, no estate or inheritance tax. Property tax is moderate.
Texas
One of the most tax-friendly states for retirees: no income tax, no Social Security tax, no retirement-income tax. Property tax is the real cost (1.68% effective, 6th-highest) but the senior homestead exemption and school-tax freeze significantly limit it.
New Hampshire
No income, sales, estate, or inheritance tax. Interest/dividends tax fully repealed in 2025. Third-highest property tax rate in the nation is the main cost.
Frequently asked questions
Which US states have no income tax?
Nine states have no state income tax as of 2026: Alaska, Florida, Nevada, New Hampshire (also eliminated its former interest/dividends tax in 2025), South Dakota, Tennessee (Hall Tax eliminated 2021), Texas, Washington (but has a 7% capital-gains tax on gains above $270K/yr), and Wyoming.
Is Florida really the best state to retire in?
Florida is consistently top-ranked for retirees because it combines no state income tax, no tax on Social Security, no estate or inheritance tax, the Save Our Homes 3% assessment cap, and generally warm weather. Wyoming is arguably equal or better on pure tax friendliness (especially low property tax), just with a much smaller retiree population.
Does no income tax mean I save money overall?
Not necessarily. No-income-tax states typically rely on higher property, sales, or other taxes. Texas has the 6th-highest effective property tax rate in the nation. Tennessee has one of the highest combined sales tax rates (~9.55%). Run the full-picture math — our per-state guides include property tax, sales tax, and estate tax alongside income tax.
Which no-income-tax state has the lowest cost of living?
Tennessee, Wyoming, and South Dakota have the lowest overall cost of living among the nine. Florida, Nevada, and Washington have the highest. New Hampshire is middle-of-the-pack with notably high property taxes (3rd-highest effective rate nationally).
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Educational content only. Retirement and tax planning involve significant uncertainty; consult a qualified fiduciary advisor before acting on any plan.