States With No Income Tax

When tax time rolls around, you typically have to file a state income tax return at the same time that you file your federal income tax return.  However, if you live or work in one of these seven states you will not  have to file an income tax return come tax time:

  • Alaska
  • Florida
  • Nevada
  • South Dakota
  • Texas
  • Washington
  • Wyoming

In addition to the above states, the following two only tax income from dividends and interest:

  • Tennessee
  • New Hampshire

Living in one of these states will certainly save you from the hassle of having to file an extra return during tax season, but it won’t necessarily save you any money. These states make up for the gap left by not collecting income taxes by charging relatively higher property, sales, and fuel taxes.  Based on 2013 data, the following graphics indicate where each of these states derived their revenue: