Nine states currently do not levy a statewide income tax on wages and salaries. These states offer residents the advantage of keeping their full earnings without a state income tax deduction.
States Without a General State Income Tax
The following states do not impose a broad income tax on their residents:
State | Notes on Taxation (if applicable) |
---|---|
Alaska | No state income tax or state sales tax. |
Florida | No state income tax. |
Nevada | No state income tax. |
New Hampshire | Does not tax wages; previously taxed interest and dividends, but this tax is being phased out. |
South Dakota | No state income tax. |
Tennessee | Does not tax wages; previously taxed interest and dividends, but this tax was fully repealed as of 2021. |
Texas | No state income tax. |
Washington | No state income tax. |
Wyoming | No state income tax. |
These states utilize alternative methods to generate revenue, such as higher property taxes, sales taxes, or specific excise taxes, to fund public services and infrastructure.