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What states have no income tax?

Published in State Taxation 2 mins read

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