Question

Which of the following is a true statement?

A. all states have income tax
B. Certain states have no state income tax
C. All states have a flat state tax
D. Depending on where you live, you may pay no taxes at all.

Answer 1

Answer: B. Certain states have no state income tax.

Explanation: It is true that certain states do not have a state income tax. As of 2021, there are seven states in the United States that do not have a state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. However, it is worth noting that these states may have other forms of taxation such as sales tax or property tax to generate revenue.