Page "Tax" Paragraph 45

A small number of U. S. states rely entirely on sales taxes for state revenue, as those states do not levy a state income tax.

Such states tend to have a moderate to large amount of tourism or inter-state travel that occurs within their borders, allowing the state to benefit from taxes from people the state would otherwise not tax.

In this way, the state is able to reduce the tax burden on its citizens.

The U. S. states that do not levy a state income tax are Alaska, Tennessee, Florida, Nevada, South Dakota, Texas, Washington state, and Wyoming.

Additionally, New Hampshire and Tennessee levy state income taxes only on dividends and interest income.

Of the above states, only Alaska and New Hampshire do not levy a state sales tax.

Additional information can be obtained at the Federation of Tax Administrators website.