States With No Income Tax 2019

States in the United States receive federal assistance for some programs, but each state is still responsible for raising its revenues to pay for education, transportation, health care, and other programs.

How is this money raised? It is typically raised through taxes. Most states tax the wages of its residents with a state income tax. However, some states do not have a state income tax, although residents do have to pay federal taxes.

While living in a state with no taxes sounds great, it’s important to note that these states still have to raise revenue. This means that taxes in other areas – such as sales tax or property tax – are much higher for residents.

In the United States, there are currently seven states that do not have a state income tax. These states are:

  1. Alaska
  2. Florida
  3. Nevada
  4. South Dakota
  5. Texas
  6. Washington
  7. Wyoming

Some states, such as Washington, have never had a personal income tax. Other states, such as Alaska, have repealed laws in recent years that require citizens to pay state income taxes.

In some states, other types of taxes are used to replace the individual income tax. In Florida, for example, residents have to pay sales taxes, higher property taxes, and corporate income taxes.

These aren’t the only states that don’t tax wages. Both Tennessee and New Hampshire do not have a personal income tax. However, these states do tax some dividends and interest. In Tennessee, the income tax rate on investment income is being reduced until the year 2022, when it will be eliminated. In the state of New Hampshire, there are not only no income taxes or sales taxes, but there are excise taxes. The state also has one of the highest property tax rates in the nations.

While it seems great to live in a state where there are no personal income taxes, remember that all states have to generate their own revenue. Even if you aren’t paying personal income taxes to the state, you may be spending just as much as other states through higher sales and property taxes, taxes on gas or groceries, or through different types of taxes.

* States with brackets show the highest tax bracket.
State Income Tax Note 2019 Pop.
Alaska0.00%735,720
Florida0.00%21,646,155
Nevada0.00%3,087,025
South Dakota0.00%892,631
Texas0.00%29,087,070
Washington0.00%7,666,343
Wyoming0.00%572,381
Tennessee2.00%On dividends and interest income only6,833,793
North Dakota2.90%There are 5 different brackets760,900
Pennsylvania3.07%12,813,969
Indiana3.23%6,718,616
Michigan4.25%10,020,472
Arizona4.54%There are 5 different brackets7,275,070
Colorado4.63%5,770,545
New Mexico4.90%There are 4 different brackets2,096,034
Illinois4.95%12,700,381
Utah4.95%3,221,610
Ohio5.00%There are 8 different brackets11,718,568
Alabama5.00%There are 3 different brackets4,898,246
Kentucky5.00%4,484,047
Mississippi5.00%There are 3 different brackets2,987,895
New Hampshire5.00%On dividends and interest income only1,363,852
Oklahoma5.00%There are 6 different brackets3,948,950
Massachusetts5.05%6,939,373
North Carolina5.25%10,497,741
Missouri5.40%There are 9 different brackets6,147,861
Kansas5.70%There are 3 different brackets2,910,931
Georgia5.75%There are 6 different brackets10,627,767
Maryland5.75%There are 8 different brackets6,062,917
Virginia5.75%There are 4 different brackets8,571,946
Rhode Island5.99%There are 3 different brackets1,056,738
Louisiana6.00%There are 3 different brackets4,652,581
West Virginia6.50%There are 5 different brackets1,791,951
Delaware6.60%There are 7 different brackets975,033
Nebraska6.84%There are 4 different brackets1,940,919
Arkansas6.90%There are 6 different brackets3,026,412
Montana6.90%There are 7 different brackets1,074,532
Idaho6.92%There are 7 different brackets1,790,182
Connecticut6.99%There are 7 different brackets3,567,871
South Carolina7.00%There are 6 different brackets5,147,111
Maine7.15%There are 3 different brackets1,342,097
Wisconsin7.65%There are 4 different brackets5,832,661
Iowa8.53%There are 9 different brackets3,167,997
Vermont8.75%There are 5 different brackets627,180
New York8.82%There are 8 different brackets19,491,339
District of Columbia8.95%There are 5 different brackets711,571
Minnesota9.85%There are 4 different brackets5,655,925
Oregon9.90%There are 4 different brackets4,245,901
New Jersey10.75%There are 6 different brackets8,922,547
Hawaii11.00%There are 12 different brackets1,416,589
California12.30%There are 9 different brackets39,747,267