States with no income tax

Washington state does not have a state income tax.Did you know there are six other states besides Washington that don’t charge income tax? Here they are, in alphabetical order:

Alaska: The state of Alaska relies heavily on petroleum revenue to cover the state budget.

Florida: Sales tax and property taxes cover government costs in Florida.

Nevada: Gambling-related taxes and fees raise almost a billion dollars for Nevada each year.

South Dakota: This western state gets its revenue from a variety of taxes, including “sin taxes” on cigarettes and alcohol.

Texas: The state of Texas sustains itself through a state sales tax, local sales taxes and property taxes.

Washington: The Evergreen State supports itself through a variety of taxes. Our state sales tax ranges from 6.5% to 9.5% in King County.

Wyoming: This state does not have a personal state income tax or a corporate income tax.

While it may seem appealing to live in a “no income tax” state, these states still pass along their operating costs to residents through other taxes and fees. As the saying goes, there is no free lunch.

 

Source: Bankrate.com