12 states that have either no income or sales taxes
There are a handful of states around the country that don't have any state income or sales taxes, so you earn your income or spend it without having to give to the state.
7 U.S. states don't have income taxes, while 2 others have nearly no income tax, and 5 don't have any sales taxes (although several states do consider certain items tax-exempt), with 2 states having both nearly no income and sales taxes.
Local governments do make up the revenue gap in other ways, however, either through property taxes (or higher income or sales taxes, depending on which one residents get a break from), or lesser services, and some local jurisdictions do impose their own sales tax on shoppers in their communities.
As for New York State, the state sales tax rate is 4%, but many locations have additional sales tax on top of the state tax. New York also has one the highest income tax rates in the nation.
But here are some places across the country you can work and shop without giving any extra to the state:
Alaska: No income or sales tax
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The Last Frontier state is one of just two in the U.S. that give residents a break from income and state sales taxes. However, some Alaskans do pay a sales tax to their local government.
Delaware: No sales tax
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Delaware's old welcome sign used to boast "Home of Tax-Free Shopping," and the state doesn't impose a state or local sales tax on goods, which can attract shoppers from other states. Delaware does have an income tax in the Top 20 in the U.S., and also is reliant on corporate taxes to help make up the gap.
Florida: No income tax
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The Sunshine State repealed its state income tax in 1855, and hasn't had one since. Florida does get its revenue through a 6% sales tax and property taxes.
Montana: No sales tax
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Big Sky Country has no sales tax, and in 2015, WalletHub said the state had the fairest tax system in the U.S., since it gets more of its revenue from income taxes.
Nevada: No income tax
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While tourists come to Nevada to gamble and experience Las Vegas, residents pay no personal income tax, and the state offers no corporate tax, no franchise tax, and no inventory tax. The Silver State does have a 6.85% sales tax, and also collects fees, most of them related to those casinos the tourists flock to.
New Hampshire: No income or sales tax
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The Granite State has no sales tax and doesn't tax earned income, although it does require residents to file a tax return when they have interest and dividend income in excess of $2,400, or $4,800 if they're married and filing jointly. New Hampshire makes up for these two with some of the highest property taxes in the U.S.
Oregon: No sales tax
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Oregon is the largest of the five states without sales tax, but it also has one of the highest income taxes in the U.S.
South Dakota: No income tax
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South Dakota, which has an economy strongly based on farming and tourism, has no income tax on individuals or corporations, getting its revenue from a 4% sales tax and various use taxes.
Tennessee: No income tax
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The Volunteer State doesn't have an income tax, although it does have a "hall tax," which taxes dividends and interest, as well as a 7% sales tax. However, Tennessee's "hall tax" is on its way out, and will be fully off the books in 2022.
Texas: No income tax
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The Lone Star State doesn't have an income tax, and gets its revenue from a 6.25% sales tax as well as taxes and royalties on oil and natural-gas production.
Washington: No income tax
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While Washington state doesn't have an income tax, it does have a sales tax of 6.5%, and also allows localities to add as much as 3% on top of that. The state also doesn't have a corporate tax, but does have a gross receipts tax. Washington residents near the border with Oregon can get the best of both worlds, paying no state income tax and driving across the border to do their shopping.
Wyoming: No income tax
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Sparsely-populated Wyoming doesn't have an income tax, but funds itself through natural-resource taxes, as well as property taxes. The state also has a 4% sales tax.
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