List of states with no income tax or sales tax - Library List of states with no income tax or sales tax

By Jonathan Weber,

There are a total of nine states with no or limited income taxes, and five states with no statewide sales tax. Of these, there are only two states that have both no state income tax and no sales tax:

  1. Alaska – Alaska has no statewide income tax, and no statewide sales tax – but local governments are allowed to collect a local sales tax of up to 7.5%. Alaska has consistently ranked as the state with the lowest tax burden in the nation.
  2. New Hampshire – New Hampshire has no statewide income tax (although it does collect income tax on dividend and interest income), and no statewide or local sales taxes. Like Alaska, New Hampshire consistently ranks among the top five lowest taxing states in the nation.

Although both Alaska and New Hampshire have notably low combined tax burdens, both of them – especially New Hampshire – have higher median property taxes than most other states.

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