Student Loans by State
How state income tax, forgiveness treatment, and repayment programs differ across the country — with a dedicated guide for each state.
States With No Income Tax
Nine states do not tax wage income. Moving to one of them removes state income tax from the equation — but property and sales taxes often rise to compensate.
Alaska
No individual income tax on wages.
Read the AK guide →Florida
No individual income tax on wages.
Read the FL guide →Nevada
No individual income tax on wages.
Read the NV guide →New Hampshire
New Hampshire completed the phase-out of its tax on interest and dividends effective January 1, 2025, so it no longer taxes individual income.
Read the NH guide →South Dakota
No individual income tax on wages.
Read the SD guide →Tennessee
Tennessee has no income tax but the highest combined state and local sales tax rate in the country.
Read the TN guide →Texas
Texas has no income tax, but its effective property tax rate is among the highest in the United States.
Read the TX guide →Washington
Washington does not tax wage income, but it levies a 7% tax on long-term capital gains above roughly $278,000 (9.9% above $1 million), plus payroll premiums such as WA Cares.
Read the WA guide →Wyoming
No individual income tax on wages.
Read the WY guide →All Other States & DC
Every state below levies an individual income tax. Open a guide for the state-specific detail and the federal tools that apply there.
What Changes From State to State
- Income tax. Rates and structures vary widely — from no tax at all to California's 13.3% top rate.
- Forgiveness treatment. Most states follow the federal treatment of discharged student debt, but a few have historically taxed it. Verify with your state.
- State deductions and credits. Some states offer their own deduction or credit for student loan interest.
- Repayment assistance programs. Many states run LRAPs for teachers, health care workers, and public-interest attorneys — with eligibility and funding that change annually.
What Does Not Change
Federal programs work the same everywhere. PSLF counts qualifying employment regardless of state, and income-driven repayment is based on your income and family size, not your address.
Last updated: September 2026 · Reviewed by ScholarPay editorial team · Income tax figures verified where available from the Tax Foundation's 2026 state tax table. General information only — not tax or legal advice.