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Taxes Income
41
No Income Tax
7
Variable
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No Income Tax States 2024

No Income Tax States 2024

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 their 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 Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and 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 Other states, such as Alaska, have repealed laws in recent years that require citizens to pay state income taxes.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 Washington and New Hampshire do not have a personal income tax. However, these states do tax some dividends and interest. In New Hampshire, there are no income taxes or sales taxes, but there are excise taxes that taxes interest and dived income. The state also has one of the highest property tax rates in the nation. Washington taxes only capital gains income.

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.

No Income Tax States 2024

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State
Is Income Taxed
Highest Bracket
Notes
CaliforniaTaxes Income13.3%
HawaiiTaxes Income11%
New YorkTaxes Income10.9%
New JerseyTaxes Income10.75%
OregonTaxes Income9.9%
MinnesotaTaxes Income9.85%
MassachusettsTaxes Income9%
VermontTaxes Income8.75%
WisconsinTaxes Income7.65%
MaineTaxes Income7.15%
WashingtonVariable7%
Washington taxes only capital gains income.
ConnecticutTaxes Income6.99%
MontanaTaxes Income6.75%
NebraskaTaxes Income6.64%
DelawareTaxes Income6.6%
South CarolinaTaxes Income6.5%
West VirginiaTaxes Income6.5%
IowaTaxes Income6%
Rhode IslandTaxes Income5.99%
New MexicoTaxes Income5.9%
IdahoTaxes Income5.8%
GeorgiaTaxes Income5.75%
MarylandTaxes Income5.75%
VirginiaTaxes Income5.75%
KansasTaxes Income5.7%
AlabamaTaxes Income5%
MississippiTaxes Income5%
IllinoisTaxes Income4.95%
MissouriTaxes Income4.95%
ArkansasTaxes Income4.9%
UtahTaxes Income4.85%
North CarolinaTaxes Income4.75%
OklahomaTaxes Income4.75%
KentuckyTaxes Income4.5%
ColoradoTaxes Income4.4%
LouisianaTaxes Income4.25%
MichiganTaxes Income4.25%
New HampshireVariable4%
New Hampshire taxes only interest and dividend income (at 5%). This policy will phase out with a 1% ...
OhioTaxes Income3.99%
IndianaTaxes Income3.15%
PennsylvaniaTaxes Income3.07%
North DakotaTaxes Income2.9%
ArizonaTaxes Income2.5%
AlaskaNo Income Tax0%
FloridaNo Income Tax0%
NevadaNo Income Tax0%
South DakotaNo Income Tax0%
TennesseeNo Income Tax0%
Tennessee previously taxed interest and dividend income, but this policy ended in 2021.
TexasNo Income Tax0%
WyomingNo Income Tax0%
United States6.23%
showing: 50 rows

No Income Tax States 2024

Sources