Most states levy an income tax on their residents that is in addition to the federal income tax. Laws vary from state to state but in most states the state income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.
There are nine states that do not have a state income tax—including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But New Hampshire levies a tax on capital gains and Washington state recently enacted a tax on extraordinary profits from the sale of financial assets over $250,000.
Florida is one of the nine states in the United States that does not impose a state income tax on individuals. This means that residents of Florida are not required to pay a state tax on their annual earnings, whether they are individuals or entities such as corporations, trusts, limited liability companies, or other legal entities. However, this does not exempt Floridians from federal income tax obligations; residents must still file and pay federal income taxes. Florida generates revenue through other means such as sales taxes, property taxes, and corporate income taxes. It's important for residents and businesses in Florida to be aware of their tax obligations at the federal level and understand the state-specific tax regulations that may apply to them.
