State By State Income Tax Guide

As of 2021, seven states — Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming — levy no state income tax. Two others, New Hampshire and Tennessee, don’t tax earned wages. While Tennessee used to tax investment income and interest, the Hall income tax was fully repealed on Jan. 1, 2021. New Hampshire currently taxes investment income and interest, but it is set to eliminate those taxes soon. That will bring the number of states with no income tax to nine by 2024. Colorado, Illinois, Indiana, Kentucky, Massachusetts, Michigan, North Carolina, Pennsylvania, and Utah have a flat income tax.

Tennessee only taxes interest and dividend income.