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Taxes

These states don't charge income tax

Plus: The best tax software for filing state taxes.

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Federal income tax is a necessary evil, but residents in a few parts of the country don't have to pay state income taxes.

Eight U.S. states don't impose any kind of income tax and one only taxes income generated from interest and dividends.

In 32 states and Washington, D.C., residents are charged a progressive income tax, where higher earners contribute more of their income. Another nine issue a flat tax, in which everyone is charged the same rate, regardless of their income level.

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These states don't charge income tax

The states with no individual income tax include:

  1. Alaska
  2. Florida
  3. Nevada
  4. South Dakota
  5. Tennessee
  6. Texas
  7. Washington
  8. Wyoming

New Hampshire, meanwhile, only taxes income generated from interest and dividends.

Moving to a state with no income tax comes with trade-offs, however, often in the form of higher sales, property or excise taxes: Tennessee's 9.56% combined sales tax rate is the second highest in the country after Louisiana. (The Volunteer State stopped taxing investment earnings in 2021.)

New Hampshire and Alaska rely the most on property taxes, which account for 67.6% and 51.8% of state revenue, respectively. And, at 49.4 cents a gallon, Washington state levies one of the highest gas taxes in the nation.

Since taxes are a big source of financing for public services, fewer taxpayer dollars can translate to less money for infrastructure, health care and education: Nationwide, the average public school spending in 2024 was $17,277 per student, while in Florida, it was $12,415 — the lowest in the country.

The best tax software for filing state taxes

Best for free state filing: Cash App Taxes

Cash App Taxes

On Cash App's site
  • Free version

    Yes

  • Guarantee

    Guarantees 100% accuracy and maximum refund

  • Live support

    No

  • Tax refund advance loan

    No

Read our review of Cash App Taxes

Pros

  • Completely free
  • Audit defense if the IRS audits your tax return
  • Can get refund five days earlier if deposited in Cash App account

Cons

  • No support from tax professionals
  • Most information must be input manually
  • Can't file returns for multiple states

Straightforward and free,Cash App Taxes allows you to file state and federal returns with access to nearly every IRS form and schedule. Multistate returns aren't supported, however, and professional support is limited.

Best for paid state filing: Jackson Hewitt Tax Services

Jackson Hewitt Tax Service

  • Cost

    A flat fee of $25 for online filing

  • Free version

    No

  • Mobile app

    No

  • Live support

    Free live chat support, plus an option to file in an office

Terms apply.

Pros

  • Simple step-by-step guidance that's easy to follow
  • A low flat fee for all types of returns
  • Free live chat support
  • Maximum refund guarantee
  • Satisfaction guarantee
  • 100% accuracy guarantee

Cons

  • No free filing option
  • No mobile app

Jackson Hewitt charges a flat $25 fee for DIY federal and state returns — no matter how many states you need to file in. Other operations can charge upwards of $40 for each state filing.

Best for ease of use: TurboTax

TurboTax

  • Free version

    TurboTax Free Edition. Simple Form 1040 returns only (no schedules except for earned income tax credit, child tax credit and student loan interest). TurboTax reports that 37% of files qualify for the free edition.

  • Guarantee

    Guarantees 100% accuracy and maximum refund

  • Live support

    Live Assisted plan includes unlimited assistance and final review. Live Full Service includes a dedicated expert to complete and file your return.

  • Tax refund advance loan

    Yes

Read our review of TurboTax tax software

Pros

  • Step-by-step guidance with easy-to-follow Q&A format
  • On-demand advice and a final review from a tax expert
  • Live Full Service plan has a tax expert who can complete your return
  • Offers tax refund advance loan

Cons

  • More expensive than other tax-prep software programs
  • May try to upsell you into getting pricier plan

TurboTax claims 37% of filers can file federal and state returns at no cost. The Free Edition is available to filers with W-2 income, qualified retirement distributions and limited 1099 interest and dividends. If you have unemployment income, stock sales, income from rental properties or self-employment income, however, you won't qualify.

Best for live support: H&R Block

H&R Block

On H&R Block's site
  • Free version

    Yes

  • Guarantee

    Guarantees 100% accuracy and maximum refund

  • Customer support

    AI Tax Assist and unlimited live chat available with all paid plans

  • Tax refund advance loan

    Not with H&R Block Online


Read our review of H&R Block online

Pros

  • Simple step-by-step guidance
  • Free plan takes federal and state returns
  • 100% accuracy and maximum refund guarantees
  • Thousands of branches for in-person help

Cons

  • More expensive than competitors
  • Must have a paid plan to speak with a live tax expert
  • Refund advance loans not available for online customers.

H&R Block charges $40 for state filing, but the AI Tax Assist feature, online chat and Worry-Free Audit Support are available with all paid tiers. H&R Block also has thousands of offices nationwide for in-person support.

When are state taxes due?

Taxes are traditionally due on April 15, and most state returns are due on the same day. A few have different deadlines, however.

  • Hawaii: April 20, 2025
  • Delaware: April 30, 2025
  • Iowa: April 30, 2025
  • Virginia: May 1, 2024
  • Louisiana: May 15, 2025

In addition, regions of the country declared disaster zones by FEMA may be given an extension on filing taxes. For more information, consult with your state Department of Revenue.

State taxes FAQs

Texas is among the states that do not charge a state income tax. It has one of the highest property taxes in the U.S., however, and an average combined state and local sales tax rate of 8.20%.

If you miss the deadline and owe money, you'll incur a penalty that increases the longer you wait to file. If you have money coming back to you, however, you won't incur a penalty but you'll only have three years to file and receive your refund.

Visityour state Department of Revenue website to find out about tracking the status of your state tax refund.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every tax software review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of tax software products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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