In the U.S, the system of taxation differs significantly from state to state. While numerous states impose income tax on their residents' earnings, a select few have chosen a different path. Seven states in the nation currently do not levy a state income tax - Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming. However, the absence of income tax does not equate to the absence of taxation as a whole. To fund necessary public services and infrastructure, these states often impose higher rates for sales, property, or other categories of tax.
It's worth noting that two states feature a hybrid model, displaying variations in their tax system: Washington and New Hampshire. While they don't tax wages, these states levy taxes on certain dividends and interests.
Key findings from the data are as follows: