The 9 states
| State | Code | Capital |
|---|---|---|
| Alaska | AK | Juneau |
| Florida | FL | Tallahassee |
| Nevada | NV | Carson City |
| New Hampshire | NH | Concord |
| South Dakota | SD | Pierre |
| Tennessee | TN | Nashville |
| Texas | TX | Austin |
| Washington | WA | Olympia |
| Wyoming | WY | Cheyenne |
Bonus partial: Washington collects tax on long-term capital gains above $278,000 (2025 threshold, indexed to inflation), and a law signed in March 2026 adds a 9.9% tax on income above $1 million from 2028. New Hampshire taxed interest and dividends until 2025. Neither taxes wages today, and both are usually included in the "no income tax" list.
What they tax instead
State governments need revenue. The 9 no-income-tax states compensate with one or more of the following:
- Higher sales tax. Tennessee (9.61% combined on average) and Washington (9.57%) rank second and third in the country, and Nevada (8.24%) ranks 13th. Figures from the Tax Foundation, July 2026.
- Higher property tax. Texas (~1.6% effective), New Hampshire (~1.9% effective) are among the highest in the country. Florida and Nevada are moderate.
- Natural resource revenue. Alaska and Wyoming rely heavily on oil, gas, and mineral severance taxes. Alaska famously pays each resident a yearly dividend from oil revenue (roughly $1,000 to $3,300 in recent years).
- Tourism taxes. Florida and Nevada both lean on hotel taxes, gambling taxes (Nevada), and theme park / cruise port fees.
Who benefits most from moving?
Generally, high-income earners who can keep their property and sales-tax exposure modest. Someone earning $300k+ saves $20-30k a year on state income tax in California or New York, that more than covers the property-tax differential in most cases.
Lower and middle-income earners often see less benefit. If you make $50k and live in a $250k home, your state income tax savings in (say) moving from Oregon to Washington can be wiped out by Washington's higher sales tax on everyday purchases.
Most popular relocation destinations
Among the 9, Florida, Texas, Tennessee, and Nevada have absorbed the most domestic migration in recent years, driven by remote work, lower cost of living vs California/NY, and the income-tax differential. Wyoming, South Dakota, and Alaska are favorites for high-net-worth households setting up trusts or LLCs (these three have the most favorable trust and asset-protection laws).
"No income tax" is a Statedoku constraint
It narrows the puzzle to just 9 states, very useful for solving.
Play today's puzzle