There are nine U.S. states that do not levy a general state income tax on wages. These states primarily generate revenue through other means, such as sales taxes, property taxes, or specific excise taxes.
The states currently without a broad state income tax are:
- Alaska
- Florida
- Nevada
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Understanding No Income Tax States
While these states generally do not tax personal income, it's important to understand the nuances of their tax structures. The absence of a state income tax does not mean residents are free from all state-level taxes. For instance, some states might have higher sales taxes, property taxes, or other specific taxes to compensate for the lack of income tax revenue.
A key distinction to note among these states is for Washington:
- Washington State: Although Washington does not impose a broad state income tax, it does levy a state capital gains tax on certain high earners. This is a specific tax on profits from the sale of assets like stocks or bonds, affecting a subset of residents.
The table below summarizes the states without a general income tax and highlights any specific considerations:
State | Notes |
---|---|
Alaska | No state income tax |
Florida | No state income tax |
Nevada | No state income tax |
New Hampshire | No state income tax |
South Dakota | No state income tax |
Tennessee | No state income tax |
Texas | No state income tax |
Washington | No broad state income tax; levies a capital gains tax on certain high earners |
Wyoming | No state income tax |