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Asked by: samserio
What does “no state income tax” mean? Does it mean when you go shopping you wont get tax?
willie mammoth on Dec 10, 2012
it says income tax not sales tax
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Judy on Dec 10, 2012
Means just what it says, that state doesn’t have a state INCOME tax. That has nothing to do with whether or not they have a SALES tax which is the tax you pay on things you buy.
Pascal the Gambler on Dec 10, 2012
It means that state doesn’t tax your income.
When you buy things, that’s sales tax.
shoredude2 on Dec 10, 2012
Most Americans file a federal income tax return and a state income tax return. However Florida, Texas, South Dakota, Wyoming, Washington, Nevada, and Alaska don’t have a state income tax. Those residents only have to file a federal income tax return and don’t pay a state income tax. Tennessee and New Hampshire only tax interest and dividends, so most people in those states don’t pay a state income tax either. Other taxes in those states tend to be higher to offset no state income tax.
This is different from no state sales tax. Those states are New Hampshire, Delaware, Montana, Alaska, Oregon, When you shop in those states there is no tax (with a few exceptions like eating out in New Hampshire or staying in a hotel in all of them).
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