US States Without Income Tax

There are seven US states which do not tax their residents' income. If you are a resident of one of these seven US states, you don't need to file a state income tax return for your home state. Keep in mind, however, that if you worked for or are employed by a company or individual outside of your no income tax state, you might be liable to pay income tax to another state as a non-resident.

7 States Without Income Tax:

Do I Owe Income Tax To Another State?

If you receive a form W2 or form 1099 which shows an out of state employer mailing address, you might owe income tax to another state.

For example - Sheri lives in Florida and earns money as a part-time freelance writer. She received a form 1099 with a California employer address. Sheri must read the California 540NR non-resident income tax form instructions to determine if she must file. If she received additional 1099 forms from other states, she must read the non-resident income tax forms and instructions for each state.

And of course don't forget to file your federal income tax forms. Just because you live in one of the seven US states without income tax means nothing to the Feds! They still want their income tax money by the April 15th due date.

Filed Under: income tax