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Which states don't have income tax?

Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don't have income tax. If you're a resident of one of these states, you don't need to file a return in that state.

In addition, New Hampshire and Tennessee only tax interest and dividend income, not wages, earnings, or other income:

  • New Hampshire residents only file a tax return if their interest and dividend income exceeded $2,400 ($4800 for joint filers) plus additional exemptions for age, blindness, and disability.
  • Tennessee residents only file a tax return if their interest and dividend income exceeded $1,250 ($2,500 for joint filers). This is the Hall income tax.

If you're a resident in one of the remaining "taxable" states and you earned money working in one of these "tax-free" states, that income needs to be reported on your resident state return.

For example, if you're a California resident and worked in tax-free Texas, you'd still have to report your Texas earnings on your California return as well as your federal return.

Similarly, if you're a resident of tax-free Texas and earned money in California, you'd still have to file a nonresident California return to report your earnings, and you'd report those on your federal return as well.

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