5 States with No Income Tax or Sales Tax

In this article, we will look at the 5 states with no income tax or sales tax. If you want to read our detailed analysis, head straight to 15 States with No Income Tax or Sales Tax.

5. Wyoming

Individual Income Tax Rate: 0%

State Sales Tax Rate: 4% 

Wyoming is one of the states with both zero individual and corporate income taxes. Wyoming’s average combined state and local sales tax rate is 5.36%. Wyoming is one of the top states with no income tax or sales tax.

4. New Hampshire

Individual Income Tax Rate: 4%

State Sales Tax Rate: 0% 

New Hampshire has no state sales tax and no individual income tax on earned wages. However, the state does charge a 4% individual income tax rate on interest and dividend income. New Hampshire is ranked fourth on our list of the states with no income tax or sales tax.

3. Delaware

Individual Income Tax Rate: 2.20%-6.60%

State Sales Tax Rate: 0% 

Delaware has an individual income tax which ranges from 2.20% to 6.60%. However, the state has a corporate income tax rate of 8.70%. With no state or local sales taxes, Delaware ranks among the top states with no income tax or sales tax.

2. Montana

Individual Income Tax Rate: 1%-6.75%

State Sales Tax Rate: 0% 

Montana does not have state sales tax or local sales tax. The state has an individual income tax between 1% to 6.75% and the corporate income tax rate is 6.75%. Montana is ranked second on our list of the states with no income tax or sales tax.

1. Alaska

Individual Income Tax Rate: 0%

State Sales Tax Rate: 0% 

Alaska is the only state that does not have an individual income tax and a state sales tax. However, the state does charge a corporate income tax between 2% to 9.40% and a local sales tax of 7.50%. Alaska ranks at the top on our list of states with no income tax or sales tax. 

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