Question of the Day: How many states do not have state income taxes?
Did you know that most people have to file tax returns for both federal AND state income taxes? Find out which states don't have state income taxes.
Answer: 9 states
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Note: Washington and New Hampshire do not tax earned income, but have some taxes on other income (ie. investments)
Questions:
- How does your state's tax rate compare to other neighboring states?
- Do you think that states that have high state income tax rates (e.g., CA and NY) have to pay higher salaries to compensate employees for these high taxes? Why or why not?
- Can you name common taxes that people pay other than state and federal income taxes?
Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.
Behind the numbers: (Investopedia):
"Before you hire a moving company to take everything you own to one of these states, you might want to consider other factors, including:
- Sales, excise, and property taxes
- Affordability
- The impact of lower taxes on a state’s ability to invest in social services, such as infrastructure, education, and healthcare"
About the Author
Kathryn Dawson
Kathryn (she/her) is excited to join the NGPF team after 9 years of experience in education as a mentor, tutor, and special education teacher. She is a graduate of Cornell University with a degree in policy analysis and management and has a master's degree in education from Brooklyn College. Kathryn is looking forward to bringing her passion for accessibility and educational justice into curriculum design at NGPF. During her free time, Kathryn loves embarking on cooking projects, walking around her Seattle neighborhood with her dog, or lounging in a hammock with a book.
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