Best States For Low Income Tax 2025

Best States For Low Income Tax 2025. Wyoming is the state with the most competitive taxes, as it has no corporate or individual income tax. As of 2025, there are just nine states that tax social security:

The seven states that don’t have an income tax are alaska, wyoming, florida, nevada, south dakota, texas and washington. Nine of those states reduced their tax rates, and one no longer taxes earned income.