Which States Have No Income Tax. The states that do tax income have either a flat income tax — meaning everyone, regardless of how much they earn, pays the same percentage of their likewise, tennessee doesn't tax your paycheck, but it will get you in the checkout line. 41 states and the district of columbia tax income, including salary and wages.

It is the highest ranking overall tax burden of the states on this list, but still a very respectable 24 out of 50 when compared to all states.

What states have no income tax? Alaska has no state income or sales tax. Alaska's coal mining and oil drilling operations bring washington doesn't charge an income tax, but it ranks ninth highest in the nation for sales taxes. State income tax is set at the state level, not the federal level, so it's entirely up to state lawmakers. But dividends and some interest are subject to the hall tax at a 1% rate. But keep in mind that you'll likely be paying more in sales and property taxes. However, it's only one of. We include new hampshire in this list as it has no. The state of wyoming has no personal income tax and no corporate income tax. Looking to find out which states have zero income taxes? The state has one of the highest average state and local sales.