Which States Have Zero Income Tax

  1. Alaska
    1. No Income or Sales Tax
    2. Relies on estate, excise and gift taxes
  2. Florida
    1. Higher property Taxes
  3. Nevada
    1. High sales tax 8%
    2. Tax gambling industry
  4. New Hampshire
    1. No sales tax except alcohol
    2. High property tax
  5. South Dakota
    1. Taxes Alcohol and Tobacco
    2. Low sales and Property taxes
  6. Tennessee
    1. High sales and sin tax
  7. Texas
    1. Texas Constitution forbids income tax for good
    2. High sales and property taxes
  8. Washington
    1. Has never had income tax
    2. High sales taxes
  9. Wyoming
    1. No income taxes for personal or corporate
    2. Low sales and property taxes as well
    3. Tax fossil fuel industry

Remember, when you go to file your taxes in April, or quarterly, you must pay income taxes in all of the states you worked and your home state. You have to pay in your home state even if you didn’t work there.

Also, if one of the states above is your tax home, you only have to pay income taxes in the states that you work. Now if your home state has a higher income tax than the states your working in, you don’t pay twice. The amount you pay in the state where you’re working will count as a credit towards the overall sum your home tax state requires.