5 States with No or Low Income Tax Rates

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

5. Washington

Personal Income Tax Rates (2024): 0%

Corporate Income Tax Rates (2024): 0%

Sales Tax Rates (2024): 7%

Washington does not have a conventional personal income tax rate but levies a 7% tax on capital gains income. With a zero corporate income tax rate, Washington ranks fifth among the states with no or low income tax rates in 2024.

4. Nevada

Personal Income Tax Rates (2024): 0%

Corporate Income Tax Rates (2024): 0%

Sales Tax Rates (2024): 7%

Nevada has zero income tax rates and ranks among the states with no or low income tax rates. Nevada levies a gross receipts tax.

3. Texas

Personal Income Tax Rates (2024): 0%

Corporate Income Tax Rates (2024): 0%

Sales Tax Rates (2024): 6%

Texas does not have an income tax rate but levies a gross receipts tax. Texas has a sales tax rate of 6%.

2. Wyoming

Personal Income Tax Rates (2024): 0%

Corporate Income Tax Rates (2024): 0%

Sales Tax Rates (2024): 4%

Wyoming ranks second among the states with no or low income tax rates. Wyoming does not have a personal or corporate income tax rate.

1. South Dakota

Personal Income Tax Rates (2024): 0%

Corporate Income Tax Rates (2024): 0%

Sales Tax Rates (2024): 4%

South Dakota alongside Wyoming is one of the top states with no or low income tax rates. Similarly, it does not have an income tax rate. South Dakota has a 4% sales tax.

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