When it comes to your taxes and finding some wiggle room in which you can save money, it might be an interesting notion to consider moving to a state with a different tax system — or no income tax whatsoever. Find Out: The Best Tax Deductions and Tax Breaks for 2024-2025 For You: 4 Affordable Car Brands You Won't Regret Buying in 2025 States collect income tax to pay for services such as education, medical care and public infrastructure. A large part of each state’s revenue comes from personal income tax as well as sales tax and business tax assessments. Some states, however, don’t impose a state income tax. Instead, these states typically charge more in other taxes, such as sales tax, property tax and capital gains tax. So it begs the question: Are you better off living in a state with no income tax? Here’s what you need to know. What States Don’t Have Income Tax? You might consider a move to one of these no-income-tax states if you cringe at the amount of the personalized taxes that seem to be deducted from your paycheck each month. But keep in mind that you’ll likely be paying more in sales and property taxes. Here’s all the information you need on the states that have no income tax.