States With No Income Tax 2020

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 Other states, such as Alaska, have repealed laws in recent years that require citizens to pay state income taxes.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 No Income Tax 2020

* States with brackets show the highest tax bracket.
State Income Tax Note 2020 Pop.
Alaska0.00%734,002
Florida0.00%21,992,985
Nevada0.00%3,139,658
South Dakota0.00%903,027
Texas0.00%29,472,295
Washington0.00%7,797,095
Wyoming0.00%567,025
Tennessee2.00%On dividends and interest income only6,897,576
North Dakota2.90%There are 5 different brackets761,723
Pennsylvania3.07%12,820,878
Indiana3.23%6,745,354
Michigan4.25%10,045,029
Arizona4.54%There are 5 different brackets7,378,494
Colorado4.63%5,845,526
New Mexico4.90%There are 4 different brackets2,096,640
Illinois4.95%12,659,682
Utah4.95%3,282,115
Ohio5.00%There are 8 different brackets11,747,694
Alabama5.00%There are 3 different brackets4,908,621
Kentucky5.00%4,499,692
Mississippi5.00%There are 3 different brackets2,989,260
New Hampshire5.00%On dividends and interest income only1,371,246
Oklahoma5.00%There are 6 different brackets3,954,821
Massachusetts5.05%6,976,597
North Carolina5.25%10,611,862
Missouri5.40%There are 9 different brackets6,169,270
Kansas5.70%There are 3 different brackets2,910,357
Georgia5.75%There are 6 different brackets10,736,059
Maryland5.75%There are 8 different brackets6,083,116
Virginia5.75%There are 4 different brackets8,626,207
Rhode Island5.99%There are 3 different brackets1,056,161
Louisiana6.00%There are 3 different brackets4,645,184
West Virginia6.50%There are 5 different brackets1,778,070
Delaware6.60%There are 7 different brackets982,895
Nebraska6.84%There are 4 different brackets1,952,570
Arkansas6.90%There are 6 different brackets3,038,999
Montana6.90%There are 7 different brackets1,086,759
Idaho6.92%There are 7 different brackets1,826,156
Connecticut6.99%There are 7 different brackets3,563,077
South Carolina7.00%There are 6 different brackets5,210,095
Maine7.15%There are 3 different brackets1,345,790
Wisconsin7.65%There are 4 different brackets5,851,754
Iowa8.53%There are 9 different brackets3,179,849
Vermont8.75%There are 5 different brackets628,061
New York8.82%There are 8 different brackets19,440,469
District of Columbia8.95%There are 5 different brackets720,687
Minnesota9.85%There are 4 different brackets5,700,671
Oregon9.90%There are 4 different brackets4,301,089
New Jersey10.75%There are 6 different brackets8,936,574
Hawaii11.00%There are 12 different brackets1,412,687
California12.30%There are 9 different brackets39,937,489