9 states that don't have an income tax
You'll have a lower overall tax burden if you live in one of these states.
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.
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.
Florida
In the absence of an income tax, the Sunshine State relies on sales taxes. Local government costs are covered by property taxes.
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.
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.
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.
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.
Wyoming
In addition to no personal state income tax, the Cowboy State also forgoes a corporate income tax.
New Hampshire
The Granite State doesn't tax wage income, but it does collect taxes on residents' dividend and interest income.
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.
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