What States Don't Pay State Income Taxes?

Alaska is one of the nine states that don't collect state income tax.

In 1817, Benjamin Franklin wrote that "In this world nothing can be said to be certain, except death and taxes." However, state income taxes are not certain in every state. In fact, nine states do not collect state income taxes.

States with No Income Tax

Citizens in Alaska, New Hampshire, Tennessee, Florida, South Dakota, Washington, Nevada, Texas and Wyoming do not pay state income taxes. However, Tennessee and New Hampshire do tax dividends and interest.

Warning

According to Eve Evans, co-author of "America's Best Low-Tax Retirement Towns," states that don't have an income tax often have higher property tax and sales tax rates.

The Other Extreme

The states with the highest state income tax are Hawaii, Connecticut and New York.

References

• IRS: States Without a State Income Tax
• Financial Edge: States That Pay The Most Taxes
• Phrases: The Phrase Finder