Jan 07, 2026

Question of the Day: How many states do not have state income taxes?

Did you know that most people have to file tax returns for both federal AND state income taxes? Find out which states don't have state income taxes. 

 

Answer: 8 states

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming.

Note: Washington and New Hampshire do not tax earned income, but have taxes on other income like investments

 


 

Questions:

  • How does your state's tax rate compare to other neighboring states? 
  • Do you think that states that have high state income tax rates (e.g., CA and NY) have to pay higher salaries to compensate employees for these high taxes? Why or why not?
  • Can you name common taxes that people pay other than state and federal income taxes? 

 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

 

Behind the numbers: (Investopedia):

"Before you hire a moving company to take everything you own to one of these states, you might want to consider other factors, including:

  • Sales, excise, and property taxes
  • Affordability
  • The impact of lower taxes on a state’s ability to invest in social services, such as infrastructure, education, and healthcare"

 

 
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About the Author

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.

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