All states must collect taxes in some form in order to pay their bills, Bankrate states. As of September 2015, however, some states do not collect certain taxes, such as income tax, sales tax or Social Security tax.
As of September 2015, seven states do not collect income tax, according to Bankrate. Four are in the Western United States: Alaska, Washington, Nevada and Wyoming, and the remaining three are in the Central or Eastern United States: South Dakota, Texas and Florida.
The five states that do not collect sales tax are Alaska, Delaware, Montana, New Hampshire and Oregon, reports The Motley Fool. Additionally, Social Security benefits are exempt from state income tax in 27 states, according to Kiplinger.