A: Nine of the fifty states choose not to levy a broad-based personal income tax. Of these, seven refrain entirely from taxing personal income, while two (New Hampshire and Tennessee) levy an "income tax" on a narrowly-defined base of income from stocks and bonds (Tennessee) or interest and dividends (New Hampshire).

To see how states without income taxes raise their revenues, check out ITEP's 2003 study, "Who Pays? A Distributional Analysis of the Tax Systems of all 50 States." To see a state summary from the "Who Pays" report in PDF format, simply click on the name of the state you're interested in below.

Note: free readers for reading PDF files are available from Adobe Systems, Inc.

States without Broad-based Income Taxes:

• Alaska
• Florida
• Nevada
• New Hampshire
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

Last Updated 1/2/2006