These states don't charge income tax

Federal income tax is a necessary evil, but residents in some parts of the country don't have to pay state income tax.

In 32 states and Washington, D.C., residents are subject to a progressive income tax, in which higher earners pay more. Another nine issue a flat tax, in which everyone is charged the same rate, regardless of their income

Eight U.S. states don't impose any kind of income tax and one only taxes income generated from interest and dividends.

The states with no individual income tax include:

1. Alaska
2. Florida
3. Nevada
4. South Dakota
5. Tennessee
6. Texas
7. Washington
8. Wyoming

In addition, New Hampshire only taxes income from interest and dividends.

Living in a state without income tax comes with trade-offs, however, often in the form of higher sales, property, or excise taxes: Tennessee's 9.56% combined sales tax rate is the second-highest in the country after Louisiana's. (Tennessee stopped taxing investment earnings in 2021.)

New Hampshire and Alaska rely the most on property taxes, which account for 67.6% and 51.8% of state revenue, respectively. And, at 49.4 cents a gallon, Washington state levies one of the highest gas taxes in the nation.

Since taxes are a big source of financing for public services, fewer taxpayer dollars can translate to less money for infrastructure, health care and education: Nationwide, the average public school spending in 2024 was $17,277 per student, while in Florida, it was $12,415 — the lowest in the country.

Best for free state filing: Cash App Taxes

Straightforward and free, Cash App Taxes allows you to file state and federal returns with access to nearly every IRS form and schedule. Multistate returns aren't supported, however, and professional support is limited.

Best for paid state filing: Jackson Hewitt Tax Services

Jackson Hewitt charges a flat $25 fee for DIY federal and state returns — no matter how many states you need to file in. Other operations can charge upwards of $40 for each state filing.

Best for ease of use: TurboTax

TurboTax claims 37% of filers can file federal and state returns at no cost. The Free Edition is available to filers with W-2 income, qualified retirement distributions and limited 1099 interest and dividends. If you have unemployment income, stock sales, income from rental properties or self-employment income, however, you won't qualify.

Best for live support: H&R Block

H&R Block charges $40 for state filing, but the AI Tax Assist feature, online chat and Worry-Free Audit Support are available with all paid tiers. H&R Block also has thousands of offices nationwide for in-person support.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every tax software review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of tax software products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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