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As of November 2012, there were seven states that did not charge any type of state income tax, including taxes on Social Security benefits. These states include Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two more states, Tennessee and New Hampshire, do not tax income or Social Security benefits, but do tax interest and dividends.
0%. Florida Is Income Tax Free â Florida is one of seven states with no personal income tax. Both Florida's tax brackets and the associated tax rates have not been changed since at least 2001. Florida has no state-level income taxes, although the Federal income tax still applies to income earned by Florida residents.