US Income Tax Free States 12-5-25

As of 2025, nine U.S. states have no broad-based state income tax on wages: 

Alaska

Florida

Nevada

New Hampshire (As of January 1, 2025, the tax on interest and dividends has been fully repealed)

South Dakota

Tennessee

Texas

Washington (Does have a capital gains tax for high earners)

Wyoming  

Important Considerations

States without an income tax must generate revenue from other sources to fund public services like schools, roads, and healthcare. This often results in: 

Higher sales taxes: Tennessee and Washington have some of the highest combined state and local sales tax rates in the nation.

Higher property taxes: New Hampshire and Texas have some of the highest property tax rates in the U.S.

Other taxes: Nevada relies heavily on taxes from tourism and gambling, while Alaska and Wyoming generate significant revenue from natural resource extraction (oil and gas). 

Therefore, the overall tax burden and cost of living can vary significantly from one "no-income-tax" state to another, and it is important to consider all factors when evaluating affordability. 

As of 2025, nine U.S. states have no state income tax. They are: 

Alaska

Florida

Nevada

New Hampshire

South Dakota

Tennessee

Texas

Washington

Wyoming

States without an income tax often rely on other forms of revenue, such as higher sales or property taxes, to fund public services. 

https://www.google.com/search?q=what+us+states+have+no+state+income+tax

Comments

Florida uses their Tourist Income and Texas uses their Oil Income to allow them to be the top two States that attract families to relocate to their States.

Norb Leahy, Dunwoody GA Tea Party Leader