States With No Income Tax

As of 2023, nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — do not levy a state income tax.

While New Hampshire does not tax most earned income, it does impose a 4% tax on dividends and interest. This rate will drop to 3% in 2024, and the tax will phase out completely in 2025. Washington also levies a long-term capital gains tax rate of 7% on assets that were sold for a profit of $250,000 or more.

And though Washington doesn’t tax most earned income, in July 2023, the state implemented the WA Cares Fund. The program deducts 58 cents per $100 from employees’ paychecks to be funneled into the state’s long-term care program.