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:

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 Other states, such as Alaska, have repealed laws in recent years that require citizens to pay state income taxes.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.

- Alcohol Tax By State
- Corporate Tax Rates By State
- Income Tax By State
- Sales Tax By State
- States That Dont Tax Pensions
- States With Lowest Taxes
- Taxes On Lottery Winnings By State
- Capital Gains Tax By State
- Gas Taxes By State
- Property Taxes By State
- State Tax Rates
- States That Tax Social Security
- Tax Burden By State
- Car Sales Tax By State
- Highest Taxed States
- Retirement Taxes By State
- States That Dont Tax Military Retirement
- States With Internet Sales Tax
- States With No Property Tax
- Taxes By State

Source:

* States with brackets show the highest tax bracket.

State | Income Tax | Note | 2020 Pop. |
---|---|---|---|

Alaska | 0.00% | 734,002 | |

Florida | 0.00% | 21,992,985 | |

Nevada | 0.00% | 3,139,658 | |

South Dakota | 0.00% | 903,027 | |

Texas | 0.00% | 29,472,295 | |

Washington | 0.00% | 7,797,095 | |

Wyoming | 0.00% | 567,025 | |

Tennessee | 2.00% | On dividends and interest income only | 6,897,576 |

North Dakota | 2.90% | There are 5 different brackets | 761,723 |

Pennsylvania | 3.07% | 12,820,878 | |

Indiana | 3.23% | 6,745,354 | |

Michigan | 4.25% | 10,045,029 | |

Arizona | 4.54% | There are 5 different brackets | 7,378,494 |

Colorado | 4.63% | 5,845,526 | |

New Mexico | 4.90% | There are 4 different brackets | 2,096,640 |

Illinois | 4.95% | 12,659,682 | |

Utah | 4.95% | 3,282,115 | |

Ohio | 5.00% | There are 8 different brackets | 11,747,694 |

Alabama | 5.00% | There are 3 different brackets | 4,908,621 |

Kentucky | 5.00% | 4,499,692 | |

Mississippi | 5.00% | There are 3 different brackets | 2,989,260 |

New Hampshire | 5.00% | On dividends and interest income only | 1,371,246 |

Oklahoma | 5.00% | There are 6 different brackets | 3,954,821 |

Massachusetts | 5.05% | 6,976,597 | |

North Carolina | 5.25% | 10,611,862 | |

Missouri | 5.40% | There are 9 different brackets | 6,169,270 |

Kansas | 5.70% | There are 3 different brackets | 2,910,357 |

Georgia | 5.75% | There are 6 different brackets | 10,736,059 |

Maryland | 5.75% | There are 8 different brackets | 6,083,116 |

Virginia | 5.75% | There are 4 different brackets | 8,626,207 |

Rhode Island | 5.99% | There are 3 different brackets | 1,056,161 |

Louisiana | 6.00% | There are 3 different brackets | 4,645,184 |

West Virginia | 6.50% | There are 5 different brackets | 1,778,070 |

Delaware | 6.60% | There are 7 different brackets | 982,895 |

Nebraska | 6.84% | There are 4 different brackets | 1,952,570 |

Arkansas | 6.90% | There are 6 different brackets | 3,038,999 |

Montana | 6.90% | There are 7 different brackets | 1,086,759 |

Idaho | 6.92% | There are 7 different brackets | 1,826,156 |

Connecticut | 6.99% | There are 7 different brackets | 3,563,077 |

South Carolina | 7.00% | There are 6 different brackets | 5,210,095 |

Maine | 7.15% | There are 3 different brackets | 1,345,790 |

Wisconsin | 7.65% | There are 4 different brackets | 5,851,754 |

Iowa | 8.53% | There are 9 different brackets | 3,179,849 |

Vermont | 8.75% | There are 5 different brackets | 628,061 |

New York | 8.82% | There are 8 different brackets | 19,440,469 |

District of Columbia | 8.95% | There are 5 different brackets | 720,687 |

Minnesota | 9.85% | There are 4 different brackets | 5,700,671 |

Oregon | 9.90% | There are 4 different brackets | 4,301,089 |

New Jersey | 10.75% | There are 6 different brackets | 8,936,574 |

Hawaii | 11.00% | There are 12 different brackets | 1,412,687 |

California | 12.30% | There are 9 different brackets | 39,937,489 |