7 States That Don't Have a State Income Tax (And Two That Don't Tax Wage Income)

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No one likes to pay income taxes. That's not a problem, at least at the state level, for residents of seven states that have no state income tax. Two others don't tax wage income.

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The Last Frontier doesn't have a state sales tax, either. Alaska depends primarily on petroleum revenue to pay for its state operations.

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In the absence of an income tax, the Sunshine State relies on sales taxes. Local government costs are covered by property taxes.

Read more from Bankrate: Overlooked tax breaks

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The Silver State's treasury is boosted by taxes paid by gambling operations in the state. Nevada Gaming Control Board data show that through Aug. 19, 2013, the state had collected more than $892 million in gaming taxes and fees.

South Dakota

To cover costs not paid for by an income tax, South Dakota's Department of Revenue Special Tax Division collects a variety of state taxes, including cigarette excise, bank franchise and alcoholic beverage taxes, and even a coin operated Laundromat license fee.

Read more from Bankrate: 7 ways to get organized for the tax year

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The Lone Star State depends on a state sales tax, with local jurisdictions collecting additional sales tax amounts and property taxes to help pay government bills.

Read more from Bankrate: Who has to file taxes?


The Evergreen State remains in the no-income-tax fold thanks to its voters' rejection in November 2010 of a proposed income tax on Washington's wealthiest residents.


In addition to no personal state income tax, the Cowboy State also forgoes a corporate income tax.

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New Hampshire

The Granite State doesn't tax wage income, but it does collect taxes on residents' dividend and interest income.

Read this story on Bankrate.com.


Volunteer State residents don't have to file a return to pay taxes on wages, but Tennessee does tax their dividend and interest income.

This work is the opinion of the columnist and in no way reflects the opinion of ABC News.

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