In the US there are several states that have no income tax. Yet it’s important to bear in mind that income tax is only one way a state gathers money to pay for its expenses. The following states are income tax free states: Wyoming, Washington, Texas, South Dakota, Nevada, Florida and Alaska. A few states only charge income tax on income that is derived from interest or stock dividends and these are New Hampshire and Tennessee. Does this mean people should immediately move to one of these states to pay no income tax? Typically it doesn’t. Usually state income tax is fairly low, and states use other means to fill their coffers. These can include sales tax, taxes on property, luxury taxes, taxes on corporate profits, and taxes on state activities. For instance, Nevada gets much of its revenue from taxes assessed on gambling activity. Only one state, Alaska, charges no income tax and no sales tax either, and two states, Texas and Florida are income tax and property tax free. How much a per
