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: New Hampshire and Washington collect tax on certain income types (NH on investment income, WA on capital gains over $250k) but neither taxes wages. They 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. Washington (10%+ in many cities), Tennessee (~9.5% average), Nevada (~8.4%) all rank in the top 10 nationally for sales tax burden.
- 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 (~$1,300–$3,000 depending on the year).
- 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 →