Income tax

An income tax is a tax levied on the financial income of persons or of corporations. Various income tax systems exist, ranging from a flat tax to a progressive tax system. A tax levied on the income of companies is often called corporate tax, corporate income tax or corporation tax. Individual income taxes generally tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income, the difference between gross receipts and expenses.

US states with no personal income tax

Citizens of these states still pay the national tax.

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• Alaska
• Florida
• Nevada
• New Hampshire – does have tax on interest and dividends
• South Dakota
• Tennessee – does have tax on interest and dividends
• Texas
• Washington
• Wyoming