A List of no Income Tax States

There are a few no income tax states in the United States. State income tax is not required by federal law, therefore not every single state requires it. Seven "no income tax" states exist. These are the states that do not collect personal income taxes:

  • Florida
  • South Dakota
  • Alaska
  • Wyoming
  • Washington
  • Nevada
  • Texas

Some states charge other taxes. For example, Alaska, Florida and South Dakota levy a corporate income tax on businesses within the state. Nevada does not have a personal income or corporate tax, but gains most of its revenue from gambling taxes.

Other states derive income through other means of taxation. For example, New Hampshire and Tennessee do not have general income tax in the traditional sense. Both states have chosen to tax interest and dividend income.

Also, Most states gain revenue from property sales and taxes, as well as estate, fuel and license taxes.

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