States Without Income Tax: What Your Paycheck Shows

Which States Have No Income Tax in 2026?

Nine states do not tax wage income. Each state's own government says so in plain words.

Which States Have No Income Tax in 2026?

You may see lists of seven or eight states elsewhere. The difference usually comes from New Hampshire and Tennessee, which taxed interest and dividends until recently, but not wages.

Alaska paycheck calculator →Florida paycheck calculator →Nevada paycheck calculator →New Hampshire paycheck calculator →South Dakota paycheck calculator →Tennessee paycheck calculator →Texas paycheck calculator →Washington paycheck calculator →Wyoming paycheck calculator →

Why the Count Differs Between Sources

Older lists leave out New Hampshire and Tennessee. Both taxed interest and dividends, not wages. The Tennessee Department of Revenue says there is no state income tax on earned income, and that the Hall income tax was fully repealed beginning January 1, 2021. The New Hampshire Department of Revenue Administration says the state does not tax W-2 wages, and that its interest and dividends tax was repealed for tax periods beginning on or after January 1, 2025.

South Dakota's Department of Revenue describes itself as one of seven states without an income tax. Counts vary by definition, so this guide uses the narrow question that matters for payroll: does the state tax an employee's wages?

Washington's Change in 2028

The Washington Department of Revenue says the state does not currently have an individual income tax. It also says a new 9.9% income tax takes effect on January 1, 2028, for individuals and married couples filing jointly with annual adjusted gross income over $1 million. Until then, no employee's wages are taxed by the state, and after it starts the tax only concerns people above that income level.

What Still Comes Out of a Paycheck?

Federal taxes apply in every state. Living in Texas or Florida removes one line from the pay stub, not all of them.

• federal income tax, based on the employee's Form W-4
• Social Security, at 6.2% from the employee
• Medicare, at 1.45% from the employee
• any pre-tax benefits, such as retirement or health plans
• any state program premiums, in the states that have them

State Programs That Still Appear

Two of the nine states collect employee premiums through payroll:

• Washington. Employers withhold Paid Family and Medical Leave premiums (1.13% of gross wages in 2026, with up to 71.43% paid by the employee, on wages up to the 2026 Social Security cap of $184,500) and WA Cares Fund premiums (0.58% of gross wages, with no wage cap, unless the employee has an approved exemption).
• Alaska. The Alaska Department of Labor and Workforce Development sets a 2026 employee unemployment insurance rate of 0.50%, on wages up to $54,200.

Paycheck Example in Texas vs Washington

The same gross pay can produce different net pay in two no-tax states.

Example: $1,500 gross every two weeks. In Texas, Social Security is $93.00 and Medicare is $21.75, leaving $1,385.25 before federal income tax. In Washington, if the employer deducts the full employee share, add about $12.11 for Paid Family and Medical Leave and $8.70 for WA Cares, leaving about $1,364.44 before federal income tax.

Federal income tax depends on the employee's W-4 and pay, so it is left out here. The premium figures are rounded to the cent and may differ slightly from your payroll software's rounding. The PayDocs paycheck calculator works it out for supported cases.

How to Make a Pay Stub in a No-Tax State

1. Enter the employer, employee and pay period.
2. Enter gross pay for the period, hourly or salaried.
3. Choose the state, such as Texas, Florida or Nevada.
4. Check the federal lines: income tax, Social Security and Medicare.
5. Add any state program premiums, such as Washington's.
6. Add pre-tax and post-tax deductions from your payroll records.
7. Check net pay and year-to-date totals, then download the PDF.

Does No Income Tax Mean No State Paperwork?

Not usually. Employers in these states may still register for state unemployment insurance, and employees may still have to file a federal return. The Florida Department of Revenue says there are no filing requirements for personal income tax there, but that covers state income tax only.

State rules on new-hire reporting, workers' compensation and pay statements are separate from income tax, and they vary by state. A small business in Houston and a household employer in Cheyenne may face quite different checklists, even though neither withholds state income tax. Before the first payday, it usually helps to check three offices: the state unemployment agency, the state labor department and, for businesses, the state revenue department for any other taxes.

No-Tax States for Household Employers

Families who employ a nanny or carer still have federal duties. A family in Miami or Las Vegas pays no state income tax on its own wages and withholds none from its nanny's, but the IRS household employment rules apply in full.

• Social Security and Medicare apply once a household employee's 2026 cash wages reach $3,000, according to IRS Publication 926.
• Federal unemployment tax applies once household wages reach $1,000 in a calendar quarter.
• Federal income tax is withheld only if the employee asks and you agree.
• Schedule H goes with your Form 1040, and a Form W-2 goes to the employee.

Publication 926 also tells household employers to contact their state unemployment tax agency. That advice holds in Florida, Texas and Wyoming as much as anywhere else, because no income tax does not mean no unemployment tax.

Year-to-Date Totals and the W-2

The pay stub is where year-end accuracy starts. In a no-tax state the W-2 has fewer state boxes to fill, so mistakes tend to sit in the federal totals.

• Year-to-date gross pay on the last stub of December should match the W-2 wage boxes.
• Year-to-date Social Security and Medicare should match what you withheld and reported.
• In Washington, keep premium totals separate from tax totals, so nobody mistakes them for state income tax.

A generator that carries year-to-date figures forward from one stub to the next makes this check quick. Fixing a total in December is far easier than correcting a W-2 in February.

Moving From a No-Tax State

Employees who move from Nevada to California, or from Texas to New York, will see a new state withholding line. Their employer should collect the new state's withholding certificate where one is used. A pay stub dated after the move should show the new state. If the employee works in one state and lives in another, which state's rules apply may depend on both states' laws, so check before changing the stub rather than guessing.

Why Use PayDocs for Pay Stubs in No-Tax States?

PayDocs builds the stub around the state you choose.

• Pick the state, and the generator shows only the lines that apply.
• Federal income tax, Social Security, Medicare and the state programs we support are worked out where our rules are reviewed; the generator lists them.
• Every line stays editable, and year-to-date totals carry forward.
• Preview free, and pay only for the finished PDF.

Tips Before Running Payroll in a No-Tax State

• Collect a federal Form W-4 from each employee.
• Check whether your state collects program premiums.
• Register for state unemployment insurance if the state requires it.
• Keep each pay stub's year-to-date totals in line with the W-2.
• Recheck rates every January, because premiums and wage caps change.

Common Mistakes to Avoid

• Assuming no income tax means no withholding at all.
• Leaving Washington's Paid Family and Medical Leave or WA Cares lines off the stub.
• Forgetting Alaska's employee unemployment insurance contribution.
• Keeping an old state on the stub after an employee moves.
• Using a stub to show income that wasn't paid through payroll.

Accuracy and Legitimate Use

A pay stub must show wages actually paid and taxes actually withheld. Creating or changing one to mislead a lender, landlord or agency is fraud. PayDocs documents are never proof of income and are not filed with the IRS.

Final Takeaway

In nine states, wages are free of state income tax, but a paycheck still carries federal income tax, Social Security and Medicare, and sometimes state program premiums. Get those lines right and the stub is simple and accurate. Our Texas paycheck calculator shows one in action.

Questions

Sources

• Texas Comptroller of Public Accounts — Fiscal Notes: Texas does not have a personal income tax
• Florida Department of Revenue — FAQ: Florida does not impose a personal income tax
• Nevada Department of Taxation — Income tax in Nevada
• South Dakota Department of Revenue — Individuals
• State of Wyoming — About Wyoming
• Washington Department of Revenue — Income tax
• Washington Paid Family and Medical Leave — Employer roles and responsibilities
• WA Cares Fund — Employers
• Alaska Department of Labor and Workforce Development — 2026 experience rates
• Alaska Department of Revenue, Tax Division — Individual income tax
• New Hampshire Department of Revenue Administration — Interest and Dividends Tax
• New Hampshire Department of Revenue Administration — Repeal of NH Interest and Dividends Tax now in effect
• Tennessee Department of Revenue — HIT-1: Tennessee income tax on interest and dividend income
• Tennessee Department of Revenue — HIT-3: Hall income tax repealed beginning January 1, 2021
• IRS — Publication 926, Household Employer’s Tax Guide

Official sources checked October 3, 2026. This guide explains how pay documents work; it is not tax or legal advice.