State Income Tax Guide: Which States Have No Income Tax?

Moving to a tax-friendly state? Discover the nine U.S. states that don't tax earned income and how they fund their state services instead.

While every American worker pays federal income tax, state income tax varies significantly. Some states have high progressive rates, others have flat rates, and nine states currently have no state income tax at all on earned wages.

The Nine No-Income-Tax States

Alaska

Florida

Nevada

South Dakota

Tennessee

Texas

Washington

Wyoming

New Hampshire

How Do These States Fund Themselves?

States without income tax typically rely on other revenue sources to fund public services like schools, roads, and emergency services:

Sales Tax: Many of these states have higher-than-average sales tax rates (e.g., Tennessee and Washington).
Property Tax: Higher property taxes are common in states like Texas and New Hampshire.
Natural Resource Revenue: Alaska funds much of its budget through oil and gas severance taxes.
Tourism Taxes: Nevada and Florida generate significant revenue from taxes on hotels, gambling, and entertainment.

Written & fact-checked by

LifeWestWay Editorial Team

Research & fact-checking desk — not lawyers, accountants or licensed advisers

This guide is researched and written in-house. Every rule, fee, threshold and salary figure is checked against primary government sources (immigration departments, tax authorities and national statistics agencies) before publishing, each page names the sources it relies on, and we re-check fast-moving pages — fees, visa rules and tax bands — at least every quarter and after any announced policy change.

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