As of 2014, seven states have no personal income tax, including Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming, according to USA Today. Tennessee and New Hampshire only tax income from dividends and interest, but have no tax on wages.Continue Reading
Those states look to other sources of income such as property taxes, estate taxes and sales taxes to pay for government services, USA Today states. Some also allow fewer tax exemptions and deductions, according to TurboTax. Pennsylvania has the next-lowest income tax at a flat rate of 3.07 percent.
Five states have no sales tax, including Alaska, Montana, New Hampshire, Delaware and Oregon, according to Daily Finance.Learn more about Taxes