9 states still have no income tax. How do they do it?

August 2, 2024 Brooklyn Eagle Staff
Photo: Patrick Semansky/AP
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New York has some of the highest income taxes in the United States, with some residents paying a 10.90% rate. Other states have no income tax at all. 

Tax expert Caroline Bruckner says there are nine states with no income tax, but these states have to find other ways to pay for public services like healthcare, schools and roads. Sometimes, politicians decide how to gather and allocate funds; often, citizens vote on whether or not to pay taxes. 

Bruckner explains how different states make up their bottom line and why no tax doesn’t necessarily mean more affordable living.

Click here to find out how states determine what to tax and the tradeoffs they make to have lower taxes.

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