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:
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.