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Tax Free States
Which States Have No Income Tax?

By William Perez, About.com

The following states do not impose an income tax on individuals.

Two states tax only dividend and interest income:
  • New Hampshire - a flat 5% tax on dividends and interest income over $2,400 per (or $4,800 if married filing a joint return).
  • Tennessee - a flat 6% tax on dividends and interest income over $1,250 per year (or $2,500 if married filing a joint return).
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