(NewsNation) — Tax season is underway, and you may be shocked to see how much is taken out in state income tax when you’re filing your 2024 returns. Nine states don’t have state income tax. Which ones are they?
Here’s a list of states that do not have state income tax:
- Alaska
- Florida
- New Hampshire
- Nevada
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
New Hampshire makes the list but is slightly different from the others on the list as the Granite State taxes interest and dividend income.
Although these states do not take taxes out of earned income, that does not mean the cost of living is lower. In fact, states may make up for the no income tax in other ways, such as a higher sales tax. Tennessee (9.56%) and Washington (9.43%) have the second and fourth highest combined state and local sales tax rates, according to the Tax Foundation.
One added bonuses for taxpayers in most states without income tax, is that there is no need to file a return in that state. The same goes for New Hampshire residents, unless their interest and dividend income is greater than $2,400 ($4,800 for taxpayers filing jointly).