| States Without Taxes on Individual Incomes |
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A Ringing Endorsement? Forty-three states and the District of Columbia accept some form of a tax on personal income as a fair, efficient, and reliable way to share at least part of the cost of government services. |
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Source: Tax Foundation; Federation of Tax Administrators. (full source, footnote) |
Full Source: Tax Foundation, available at
http://www.taxfoundation.org/individualincometaxrates.html, accessed 14
July 2005. See also the Federation of Tax Administrators, at
http://www.taxadmin.org/fta/rate/ind_inc.html and
http://www.taxadmin.org/fta/rate/corp_inc.html, accessed 14 July 2005.
Full Footnote: New Hampshire and Tennessee do not tax salary and wage income but do tax income from interest and dividends. Most states use some form of corporate income tax as well. Nevada, Washington, and Wyoming do not have state corporate income taxes. Michigan imposes a "business activities" tax on the sum of federal taxable income of each business, compensation paid to employees, dividends, interest, royalties paid and other items. Similarly, Texas imposes a franchise tax on earned surplus or net worth of businesses.
Full Footnote: New Hampshire and Tennessee do not tax salary and wage income but do tax income from interest and dividends. Most states use some form of corporate income tax as well. Nevada, Washington, and Wyoming do not have state corporate income taxes. Michigan imposes a "business activities" tax on the sum of federal taxable income of each business, compensation paid to employees, dividends, interest, royalties paid and other items. Similarly, Texas imposes a franchise tax on earned surplus or net worth of businesses.