Do residents in Florida pay income taxes?
Do residents in Florida pay income taxes? No. Because Florida does not have a personal income tax, distributions from pensions, 401(k)s, 403(b)s and IRAs are not taxed at the state or local level. Nor is military retirement pay.
What is the most tax friendly state to live in?
MoneyGeek's analysis found that Wyoming is the most tax-friendly state in America, followed by Nevada, Tennessee, Florida and Alaska. States that received a grade of A all share something in common: no state income tax. Washington and South Dakota — which both received a B — also have no state income tax.