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States with no income tax

Bankrate.com
Mt McKinley, Alaska in Autumn
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Mt McKinley, Alaska in Autumn (Bob Pool/Getty)

No one likes to pay income taxes. That's not a problem, at least at the state level, for residents of seven states that have no state income tax. Two others don't tax wage income.

1. Alaska
The Last Frontier doesn't have a state sales tax, either. Alaska depends primarily on petroleum revenue to pay for its state operations.

See a quick snapshot of Alaska's tax rates.

2. Florida
In the absence of an income tax, the Sunshine State relies on sales taxes. Local government costs are covered by property taxes.

See a quick snapshot of Florida's tax rates.

3. Nevada
The Silver State's treasury is boosted by taxes paid by gambling operations in the state. Nevada Gaming Control Board data show that through Aug. 19, 2013, the state had collected more than $892 million in gaming taxes and fees.

See a quick snapshot of Nevada's tax rates.

4. South Dakota
To cover costs not paid for by an income tax, South Dakota's Department of Revenue Special Tax Division collects a variety of state taxes, including cigarette excise, bank franchise and alcoholic beverage taxes, and even a coin operated Laundromat license fee.

See a quick snapshot of South Dakota's tax rates.

5. Texas
The Lone Star State depends on a state sales tax, with local jurisdictions collecting additional sales tax amounts and property taxes to help pay government bills.

See a quick snapshot of Texas' tax rates.

6. Washington
The Evergreen State remains in the no-income-tax fold thanks to its voters' rejection in November 2010 of a proposed income tax on Washington's wealthiest residents.

See a quick snapshot of Washington's tax rates.

7. Wyoming
In addition to no personal state income tax, the Cowboy State also forgoes a corporate income tax.

See a quick snapshot of Wyoming's tax rates.

8. New Hampshire
The Granite State doesn't tax wage income, but it does collect taxes on residents' dividend and interest income.

See a quick snapshot of New Hampshire's tax rates.

9. Tennessee
Volunteer State residents don't have to file a return to pay taxes on wages, but Tennessee does tax their dividend and interest income.

See a quick snapshot of Tennessee's tax rates.


Sources: State tax rates and individual state tax departments.


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