8 no-income-tax states
FL, TX, NV, WA, WY, AK, SD, TN — a common choice for remote workers, retirees, and high earners.
At a glance
183+ days in the state
Physical presence threshold. Below it and your former state may still tax you.
Aggressive audits
Residents relocating from high-tax states like California or New York face aggressive audits.
Introduction
Not all states tax you the same way
When it comes to taxes, some states have higher taxes than others, or in some cases, there is no tax at all. If you are searching for the right state to claim for taxes, it depends on the financial situation as well as the lifestyle one is maintaining.
01No-income-tax states
States with no income tax
The states with the most tax-friendly brackets are the ones where there is no state income tax at all.
No income tax
Washington
No income tax
Nevada
No income tax
Wyoming
No income tax
Alaska
No income tax
South Dakota
No income tax
Florida
No income tax
Texas
No income tax
Tennessee
Upon achieving your domicile in these states, you will not be liable to pay any state income tax at all. This is a strategy used by remote workers, retirees, and remote-first professionals.
02Look at the full picture
What about other taxes?
Although income tax does not have to be paid, some states have higher fees in other domains such as sales tax or higher property tax. Texas is known for higher property taxes; Florida has higher property insurance. Always consider all taxes and not only the income tax.
03How to claim
How to claim residency in a low-tax state
Merely purchasing a home or a P.O. box in a state with no taxes does not qualify.
Stay 183+ days
At your new domicile — physical presence threshold under most state statutes.
Change ID and registrations
Driver’s license, bank documents, and voter registration to your new state.
Update every official document
Address on tax documents, bank accounts, and other official records.
Important things to keep in mind: residents relocating to no-tax states from high-tax states like California or New York are audited aggressively. To avoid tax from your former state, you need to sever the majority of ties.
04Final thoughts
No income tax comes with legal hurdles
Usually, no state income tax means claiming residency in that state. However there may be some legal hurdles to clear in establishing domicile. Failing to legally establish residency may have severe consequences.
Full legal compliance on your residency change
Reach out today to establish full legal compliance. Dimov NYC CPA is ready to present professional assistance. Call (212) 641-0673.
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“Plan early because if you don’t there might be a surprise. You just made a big purchase or you made a big sale. You don’t know how that will affect your taxes.”
George Dimov, CPA
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Compare the full tax picture
Pick the right no-tax state — not just any
Income tax is one line. Property tax, sales tax, and insurance rates vary widely. We help you model the full picture before you move. Call (212) 641-0673 or send the contact form. No charge for the conversation.
Reviewed by George Dimov, CPA, New York, NY. Serving clients in all 50 states, 15+ years advising on multistate tax planning and residency. President of George Dimov, CPA, a New York City firm serving clients across the five boroughs and nationwide.