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States without Income Tax

Lesson
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Did you know that some states do not have a state income tax?

They are as follows:

  • Alaska
  • Florida
  • Nevada
  • New Hampshire
  • South Carolina
  • Tennessee
  • Texas
  • Washington
  • Wyoming

As a tax advisor, you should be able to recognize the special status of these states.

Question
Alice Johnson has been working out of his home office in South Dakota for many years.
Does Alice have to pay state income tax?
Answer
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👉 Answer:

  • Yes, Alice does have to pay income tax.

👩‍🎓 Here's how we arrived at the answer:

  • South Dakota has a state income tax.
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