States With No Income Tax for Retirees in 2026

Nine states charge zero state income tax. For retirees living on a fixed income, that means every dollar from Social Security, pensions, 401(k) withdrawals, and investment income stays in your pocket at the state level. But no income tax doesn’t automatically make a state great for retirement. We score all 50 states across 10 factors in our best states to retire in 2026 rankings, and some no-tax states rank surprisingly low.

Alaska has no income tax, but the cost of living is brutal and the weather isn’t what most retirees are looking for. Washington has no income tax, but it does have an estate tax and above-average living costs. The best no-tax states for retirees are the ones that combine tax advantages with affordable living, decent healthcare, and a climate you can enjoy. Here’s how all nine stack up.

All 9 No-Income-Tax States at a Glance

State	Income Tax	SS Benefits	Cost of Living	Key Notes
Alaska	No	No SS tax	Very high	Cold, remote
Florida	No	No SS tax	Moderate-high	Warm, huge retiree pop
Nevada	No	No SS tax	Moderate	Dry climate
New Hampshire	No*	No SS tax	High	Low crime, great HC
South Dakota	No	No SS tax	Moderate	Low crime, affordable
Tennessee	No	No SS tax	Low-moderate	Warm, growing
Texas	No	No SS tax	Low-moderate	Warm, varied COL
Washington	No	No SS tax	Moderate-high	Estate tax
Wyoming	No	No SS tax	Low-moderate	Cold, very safe

 

*New Hampshire taxes interest and dividend income above a certain threshold, but has no tax on earned income, Social Security, pensions, or retirement account withdrawals.

The Best No-Tax States for Retirees

Not all of these states are created equal. Here’s a closer look at the ones that make the most sense for retirement.

Florida

Florida tops our overall retirement rankings for good reason. No income tax is just the start. The state has the largest population of retirees in the country, which means everything from healthcare to housing to recreation is built around serving people over 65.

The weather is warm year-round with nearly 230 days of sunshine. Crime rates are moderate. Healthcare access is strong across most of the state. The biggest downside is cost of living, which has risen significantly in popular areas like Naples, Sarasota, and the Tampa Bay region. But there are still options. Our guide to affordable retirement communities in Florida covers where to find them.

Texas

Texas ranks in our top 5 for retirement. No income tax. A cost of living that ranges from very affordable (smaller cities) to moderate (Austin, Dallas). The state has some of the best healthcare facilities in the country, particularly in Houston and the Dallas-Fort Worth metro.

The tradeoff is weather. Summers in most of Texas are genuinely hot. If you’re okay with that, the financial picture is excellent. Property taxes are higher than average, which partially offsets the income tax savings. Something to factor in if you’re buying a home.

Tennessee

Tennessee doesn’t get enough attention as a retirement state. No income tax. A cost of living well below the national average. Warm weather without the extreme heat of the Deep South. Nashville and Knoxville have strong healthcare systems.

Our scoring system ranks Tennessee in the top 15 for retirement overall. It’s affordable, tax-friendly, and offers four mild seasons. The music scene, outdoor recreation, and Southern culture are bonuses.

Wyoming

Wyoming has no income tax, no estate tax, and a moderate cost of living. It’s one of the safest states in the country with very low crime rates. For retirees who want wide open spaces and quiet living, it’s ideal.

The catch is winter. Wyoming gets cold. The population is small, which means fewer healthcare options and amenities compared to bigger states. If you don’t mind that tradeoff, the financial advantages are hard to match.

South Dakota

Similar story to Wyoming. No income tax. Low cost of living. Safe communities. The state has some strong regional hospitals and a growing retiree population in the Black Hills area. Cold winters are the main drawback.

Nevada

Nevada has no income tax and a moderate cost of living outside the Las Vegas strip. Reno and Henderson are popular with retirees. The climate is dry and warm, with mild winters in the southern part of the state. Healthcare can be limited in rural areas.

The No-Tax States That Need Caveats

Alaska

No income tax, and residents actually receive an annual dividend from the state’s oil fund. But the cost of living is among the highest in the country. Groceries, heating, and housing all cost significantly more than the national average. The climate is cold and dark for much of the year. Healthcare access is limited outside Anchorage. For most retirees, Alaska’s tax advantage doesn’t offset the other costs.

Washington

No income tax and excellent healthcare (particularly in the Seattle metro). But the cost of living is high, especially on the western side of the state. Washington also has an estate tax. The climate on the west side is mild but gray and rainy. Eastern Washington is drier and more affordable but colder.

New Hampshire

No tax on earned income or retirement benefits. Outstanding healthcare and some of the lowest crime rates in the country. But the cost of living is high, the weather is cold, and property taxes are among the highest in the nation.

No Income Tax vs. Low Total Tax Burden

Here’s the thing a lot of people miss: no income tax doesn’t always mean lowest total taxes. States without income taxes often make up the revenue elsewhere.

Texas has high property taxes. Washington has high sales taxes and an estate tax. New Hampshire has some of the steepest property taxes in the country. Tennessee has above-average sales tax rates.

The best approach is to look at your total tax picture: income tax, property tax, sales tax, and any estate or inheritance taxes. A state like Mississippi has a modest income tax but rock-bottom property taxes and cost of living, which can actually leave you with more money than a no-tax state with expensive housing. We explored this tradeoff in detail in our piece on whether no-income-tax states are worth it.

Which No-Tax State Is Best for You?

It depends on what matters most beyond taxes.

Want warm weather and a big retiree community? Florida is the clear winner.

Want affordability above all else? Tennessee and South Dakota offer the best combination of no income tax and low cost of living.

Want safety and quiet? Wyoming and South Dakota have some of the lowest crime rates in the country.

Want top-tier healthcare? Washington and New Hampshire have excellent medical systems, but higher costs.

The bottom line: no income tax is a great starting point, but it’s only one piece of the puzzle. Pair it with cost of living, healthcare access, weather, and safety to find the state that actually fits your retirement. And if Social Security is your primary income, see our guide on states that don’t tax Social Security for a broader look at tax-friendly options beyond just the nine no-income-tax states.