Income Taxes by State: A Complicated LandscapeState income tax rates range from 0% to 13.3%, with nine states not imposing any state income tax at all. These states, known as "no-tax" states, include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. For the states that do levy income taxes, the structures vary, with some employing flat tax rates and others utilizing graduated tax systems with multiple brackets.