Moving To These 9 States Could Add Thousands to Your Salary — Without a Raise

Moving to the close authorities could enactment thousands of other dollars successful your pouch each twelvemonth without changing jobs oregon getting a raise.

Nine states complaint zero idiosyncratic income taxation successful 2026. That means residents get their paychecks without authorities authorities taking a cut. For radical relocating from high-tax states similar California, the savings adhd up fast.

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming complaint nary idiosyncratic income taxation successful 2026.

New Hampshire joined the database astir recently. The authorities eliminated its last 3% taxation connected involvement and dividend income effectual Jan. 1, 2025. Washington represents a partial objection due to the fact that it levies a 7% superior gains taxation connected definite assets for precocious earners, but charges thing connected regular wages oregon salaries.

These states request to money authorities services somehow. Most offset missing income taxation gross done higher income taxes, spot taxes oregon industry-specific levies.

Texas and Florida trust heavy connected spot taxes. Tennessee boasts 1 of the highest mean income taxation rates successful the state astatine 9.55%. Nevada generates important gross from gambling taxes and tourism fees. Alaska taps lipid manufacture revenues.

Wyoming stands retired by keeping each taxes comparatively low. The authorities charges nary income tax, nary firm taxation and nary property oregon inheritance taxation portion maintaining a 4% income taxation and debased spot taxation rates.

Learn More: Trump Wants To Replace Income Taxes With Tariffs: 2 Impacts connected the Middle Class

Read Next: 9 Low-Effort Ways To Make Passive Income (You Can Start This Week)

A California household earning the median income of $91,905 would prevention $2,843 per twelvemonth by moving to a no-income-tax state, according to Yahoo Finance. That calculation lone factors successful authorities income taxation savings without considering different costs.

The savings turn substantially for higher earners. An technologist successful San Francisco with taxable income of $100,000 owes astir $6,600 to California each year. Moving to Austin, Texas, means paying zero authorities taxation connected that aforesaid income, according to fiscal readying steadfast PlanCorp. A elder technologist earning $200,000 could prevention adjacent to $17,000 annually by making the aforesaid determination from California to Texas.

California isn’t unsocial successful charging important authorities income tax. The state’s graduated rates scope from 1% to 13.3%, according to the Tax Foundation. New York charges up to 10.9%. New Jersey’s apical complaint hits 10.75%.

No income taxation doesn’t automatically mean little wide costs. Many no-income-tax states compensate done different levies that tin importantly impact household budgets.