Been thinking about this question a lot lately: what states don't have state taxes? Turns out there are actually 9 of them, and it's way more interesting than you'd think because the answer isn't as straightforward as it sounds.

So here's the thing - when people ask what states don't have state taxes, they usually mean income tax. And yeah, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming all skip the income tax route. But before you start packing your bags, there's a catch.

These states don't just let people off the hook for free. They make up that revenue somewhere else. Alaska's interesting because it's got oil money flowing in, so they barely need to tax you at all. But most of the others? They hit you with higher sales tax, property tax, or both. Florida charges 6% sales tax to make up for no income tax. Nevada's at 6.85%. Texas has crazy high property taxes even though there's no income tax. Washington's sales tax is one of the highest in the country at 6.5%.

I started digging into this because I kept seeing people ask what states don't have state taxes and assume they'd save a fortune. The reality's more nuanced. New Hampshire's a weird one - they don't tax your regular income, but they do tax investment income at 5%. And their property tax is brutal, nearly 1.61% effective rate.

The real question isn't just which states don't have income tax. It's whether the tradeoff actually works for your situation. Someone making serious money might genuinely benefit from moving to Texas or Florida and avoiding that income tax hit. But if you're middle class, you might end up paying just as much or more through sales and property taxes.

Wyoming's probably the most balanced option - 4% sales tax, low property tax at 0.55%, and no income tax at all. South Dakota's also solid with 4.2% sales tax and no income tax. But honestly, what states don't have state taxes matters less than understanding your total tax picture. Some of these states also have lower wages and fewer job opportunities, which can wipe out any tax savings.

The bottom line? It depends entirely on your income level, where you own property, and what matters to you lifestyle-wise. For retirees living off investments, these states can be a game-changer. For younger workers, the job market and wages might matter more than the tax savings.