what states have no income tax 
there are a handful of states that don t levy state income taxes this includes alaska florida nevada south dakota tennessee texas washington and wyoming however if residents of these states work or perform services in other states it s possible that income may still be taxed by those other states the bottom linedouble taxation occurs when taxes are levied twice on a single source of income often this occurs when dividends are taxed like individuals corporations pay taxes on annual earnings if these corporations later pay out dividends to shareholders those shareholders may have to pay income tax on them double taxation can also occur when income is taxed by two separate countries in response to increased globalization giving rise to potential double taxation many countries have forged tax treaties to avoid taxation and augment trade 