Which state has the lowest state taxes?

Answer by  beck (1099)

Tennessee and Florida don't have income taxes but there may be "hidden taxes". Quite often property taxes, personal property taxes and sales tax are higher in states that don't have an income tax. Some states such as Kentucky don't tax retirement income with limits- as of now about $41,000 per year. Go to each state's website to get information.

Answer by  technogeek (6640)

Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming have zero state tax. New Hampshire and Tennessee have state taxes, but they only tax dividend income and interest income. The other states have standard taxation, but at different rates.

Answer by  Cjc (299)

We'll assume that you are talking about income tax, not sales tax. There are several states that do not have state income taxes. Currently, Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming are all states with no state income tax. New Hampshire and Tennessee only collect tax on interest and dividend income.

Answer by  tamarawilhite (17883)

Alaska has no income tax, sales tax or property tax. It actually pays a royalty from state oil and gas revenues paid to all residents.