Tax Day 2022: These states don't require you to file a tax return

Federal taxes are due April 18 -- and most state taxes are due then, too. But residents of these states don't have to worry about state income tax.

Dori Zinn Contributing Writer
Dori Zinn loves helping people learn and understand money. She's been covering personal finance for a decade and her writing has appeared in Wirecutter, Credit Karma, Huffington Post and more.
Dori Zinn
3 min read
states with no income tax
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This year, federal tax returns are due on April 18, and as of right now, there's no indication that this date will be moved. That means for most Americans, both federal and state taxes are due mid-April -- with a few exceptions. But not every state collects income tax, which means not all Americans have to file state taxes.

Unless you live in one of the few states that don't collect income taxes, you're on the hook for filing a state return. (The IRS will begin accepting federal returns on Jan. 24 this year.) State tax deadlines vary; you can check yours on the Federation of Tax Administrators website.

Some tax software will throw in state filing for free if you pay to prep a federal return, but others charge an extra fee. And, if you've recently moved -- or work in a different state than where you live -- you might need to file more than one state tax return, which may cost you even more to file, depending on which tax software you use.

States with no income tax

In addition to your federal tax return, most states also require you to file a state return. There are seven states with no income tax, however. They are:

  • Alaska
  • Florida
  • Nevada
  • South Dakota
  • Texas
  • Washington
  • Wyoming

Things are a bit more complicated in Tennessee and New Hampshire, which don't tax earned income. They do tax investment income (and dividends), however, so residents there may still be required to file a return. The rest of us -- whether single filers or joint filers -- have to pay some level of state income tax, whether it's a flat rate or based on your taxable income. 

States with no sales tax

Sales tax is a tax the government puts on the sale of goods and services. It's typically collected at the state, city and local municipality levels. Sales tax rates vary widely across the 45 states (and the District of Columbia) that collect state sales tax. In addition to the states that collect sales taxes, 38 states also allow for local sales taxes. In some instances, local taxes can be higher than state taxes.

The five states that don't collect sales tax are:

  • Alaska
  • Delaware
  • Montana
  • New Hampshire
  • Oregon

The states with the highest combined sales tax between state and local sales taxes are:

  • Tennessee: 9.47%
  • Louisiana: 9.45%
  • Arkansas: 9.43%
  • Washington: 9.17%
  • Alabama: 9.14%

While the state of Alaska doesn't collect sales tax, its local sales tax average is 1.43%. It's the state with the lowest overall sales tax. California has the highest state-enforced sales tax at 7.25%. 

Many states exempt groceries from sales tax, while some tax it at a lower rate compared with other goods. And, every year, many states offer a sales tax holiday. Some states like Alabama, Texas and Florida offer multiple tax holidays -- for hurricane supplies and school supplies. Mississippi has one just for firearms and hunting supplies. 

How property taxes figure in

All 50 states and the District of Columbia collect some sort of property tax. It can be collected at the state, county and local level. Property taxes are one of the main sources of local revenue, and there are five states whose property taxes account for 30% or more of their overall revenue:

  • Connecticut
  • Maine
  • New Jersey
  • Rhode Island
  • Vermont

Though Alabama's property taxes account for only about 10% of its revenue, it has one of the highest combined sales taxes -- between state and local -- in the country.