If you are googling “states with no income” you must be either getting ready for tax season, moving to a new state, starting a business, or have a current or potential Section 1202 qualified small business stock opportunity. Am I right? Well, you’ve come to the right place for tax answers.
Currently, there are seven states with no state income tax regardless of whether you have W-2 wages, a capital gain from QSBS, or a K-1 from a pass-through business income. Below is the list of states:
There are also two states that do not have capital gains tax, which is extremely important if you have a QSBS investment in the below states:
How does my state treat QSBS capital gains?
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.