The tax man cometh, the tax man taketh. There’s really no avoiding the government taking its piece of your pie, as great people have eloquently noted.
But there are still a few places of refuge from taxation. Several U.S. states do not impose a personal income tax, and there is no indication that will change anytime soon.
Sure, there are a bunch other taxes you will have to pay — federal income tax, property tax, sales tax, for example — but at least the following states let you hold on to more of your money.
Keep reading to see which states do not levy income taxes on individuals, starting with the latest state to join this group and ending with the state that is almost income-tax-free.
1. New Hampshire
As of 2025, New Hampshire does not tax any type of income earned by its residents.
Previously, the state didn’t tax wage income but did tax interest and dividend income. However, the interest and dividend tax has been repealed, a change that took effect on Jan. 1, 2025.
As a bonus, New Hampshire is also one of the few states that don’t levy sales taxes on consumers, as we detail in “5 States Where Shoppers Don’t Pay Sales Taxes.” New Hampshire is also among the majority of states that don’t levy an estate tax or an inheritance tax.
2. Tennessee
Tennessee is the second-most recent state to do away with taxes on all types of income earned by its residents.
Previously, it didn’t tax wage income but did tax stock dividends and bond and note interest, which the state referred to as the Hall income tax. However, the Hall tax was repealed effective Jan. 1, 2021.
Like New Hampshire and every other state on this list except for Washington, Tennessee is also free of estate and inheritance taxes.
3. Alaska
There is no state income tax for residents of Alaska, which also boasts relatively low taxes of other types.
Like New Hampshire, Alaska is among the few states that don’t levy a statewide sales tax on residents, although local governments have the option to levy a general sales tax and some do. In areas with a local sales tax, the rate ranges from 1% to 7% but is typically 2% to 5%.
There are also parts of Alaska without property taxes, as only 24 municipalities (either cities or boroughs) levy a property tax, according to the state’s Department of Commerce, Community and Economic Development.
4. Florida
The Sunshine State has its share of taxes that residents must pay, but personal income taxes are not among them. Neither are inheritance taxes, estate taxes, gift taxes or intangible personal property taxes.
5. Nevada
Nevada does not levy income taxes on residents — or small businesses, for that matter. Only businesses whose gross revenue exceeds $4 million per fiscal year are subject to the state’s commerce tax.
6. South Dakota
South Dakota does not assess a state income tax on individuals.
Other taxes in the state are also down. In 2023, state leaders enacted the largest tax cut in South Dakota’s history, which temporarily lowered the state’s overall sales tax rate from 4.5% to 4.2%. The 4.2% rate will be in effect until June 30, 2027.
7. Texas
They say everything is bigger in Texas, but state income taxes are an exception. Texas touts its “business-friendly climate — with no corporate or personal income tax.”
8. Wyoming
Wyoming does not assess a personal income tax — or a corporate income tax, for that matter.
Instead, the state government and local governments rely heavily on mineral taxes, according to the Wyoming Taxpayers Association. These taxes, which date back to 1969, may apply to precious minerals, natural gas, petroleum and various other types of minerals extracted in the state.
The almost income-tax-free state: Washington
Like all the other states on this list, Washington doesn’t tax residents’ wage income or dividend and interest income. But as of 2022, it does tax some residents’ capital gains. This 7% tax applies to the sale or exchange of long-term capital assets, including stocks and bonds.
There is a standard deduction for Washington’s capital gains tax, though. For example, it was $270,000 for the 2024 tax year. So, unless a resident’s long-term capital gains in 2024 exceeded $270,000, they wouldn’t actually owe the capital gains tax for 2024.
Still, this tax keeps Washington from being completely income-tax-free.
