State Income Taxes
Some states don’t have an income tax, some write their laws based on the Federal income tax laws, and others are independent from the federal laws.
No income tax at all
You don’t need to do anything! These states don’t have any income tax.
- New York
- South Dakota
Based on the federal laws
These states’ income tax laws are based on the federal laws, and 98% of Americans are exempt from them.
- Georgia (Forms and instructions only, not laws)
- New Hampshire (Only on interest and dividends. Forms only. Phase-out end of 2026)
- New Mexico
- North Carolina
- Rhode Island
- South Carolina
- Washington (certain long-term capital gains only)
Independent from federal laws
These states’ income tax laws are independent from federal laws, and you cannot exempt from them.
- New Jersey
- Indiana (still needs research)
Unverified by FLS
The remaining states’ income tax laws have not yet been researched by Freedom Law School.