Over half of all taxes collected by the IRS — $3.1 trillion in fiscal 2014 — comes from income taxes. Like the federal government, state and local governments also rely heavily on income taxes. Very few people in the United States can avoid paying federal income taxes, but there are seven states where individual income is not taxed at all at the state level.

24/7 Wall St. reviewed the most recently available data from tax research group the Tax Foundation. Just seven states — Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming — do not levy an individual income tax. Relatively few New Hampshire and Tennessee residents pay tax on their income, but because these states collect taxes on dividends and interest income, they were not included on this list.

Tax collections account for the bulk of every state’s revenue, which is needed to invest in and repair infrastructure, maintain public services such as police and fire departments, and pay other government employees — to list but a few examples. Without an income tax, these states often need to find another source of revenue.

Click here to see the states with no income tax.

On average, in a given year, 22.5% of state and local tax collections come from general sales taxes. In five of the seven states, this proportion is well over 30%. In Washington, 44.8% of state and local tax collections come from sales taxes, the highest percentage nationwide. Similarly, some of these states rely more heavily on property taxes. Property taxes in Texas and Wyoming, for example, account for 40.4% and 37.5% of tax collections respectively, each well above the average proportion across all states of 31.3%.

24/7 Wall St. reviewed the seven states with no income tax using data on state and local tax rates and collection data from tax research group the Tax Foundation’s report, Facts & Figures 2016. Individual income tax, as well as corporate income tax rates are as of January 1, 2016. State individual, as well as corporate income tax collections per capita are from 2014. General sales tax rates and per capita collections are from January 1, 2016 and 2014 respectively. Excise tax data, including gasoline tax rates, are also as of January 1, 2016. Property taxes paid as a percentage of owner-occupied housing values are from 2014, and state and local property tax collections per capita are for 2013. State and local debt per capita is for 2013 — all from the Tax Foundation. We also looked at per capita personal income as of 2014 from the Bureau of Economic Analysis (BEA). Regional price parities in each state, also known as cost of living, also came from the BEA and is for 2013.

These are the states with no income tax.

1. Alaska
> Individual income tax collections per capita fiscal 2014: $0
> Personal income per capita: $54,012 (8th highest)
> Corporate income tax collections per capita fiscal 2014: $555 (the highest)
> State & local property tax collections per capita fiscal 2013: $1,913 (10th highest)

Alaska is one of just seven states where residents pay no income tax to the state whatsoever. To make up for the revenue not gained through income tax, Alaska relies more on other sources of income. The average Alaskan pays nearly $2,000 in property taxes to state and local governments annually, the 10th largest such collection nationwide. Also, corporate income is taxed far more than in other states. Corporate income greater than $222,000, for example, is taxed at 9.4%, nearly the highest rate. Corporate income tax collections amount to $555 per capita each year in Alaska, the highest of any state.

Alaska also levies other taxes. While other states without an income tax tend to rely more heavily on property and sales taxes, more than two-thirds of Alaska’s tax collections — an exceptionally high proportion — come from other taxes. These include excise, severance, stock transfer, estate, and gift taxes.

2. Florida
> Individual income tax collections per capita fiscal 2014: $0
> Personal income per capita: $42,737 (23rd lowest)
> Corporate income tax collections per capita fiscal 2014: $103 (13th lowest)
> State & local property tax collections per capita fiscal 2013: $1,216 (23rd lowest)

Florida does not have an income tax. The state also does not levy a property tax, although property is taxed at the local level. While local governments rely heavily on these property taxes to fund public programs, the average property tax collection per capita and as a percentage of home values, at $1,216 and 0.98%, are still below the respective national averages. While individuals are not required to pay taxes on their income, corporate income is taxed, although relatively little is collected. Florida collects $103 per capita in corporate income taxes, among the lowest compared with other states.

3. Nevada
> Individual income tax collections per capita fiscal 2014: $0
> Personal income per capita: $40,742 (15th lowest)
> Corporate income tax collections per capita fiscal 2014: $0 (tied–5th lowest)
> State & local property tax collections per capita fiscal 2013: $972 (16th lowest)

Income from individuals as well as from corporations is not taxed in Nevada. The state also collects less than $1,000 per capita in property taxes annually, well below the national average collection of $1,439. The state’s sales tax rate of 6.8%, which includes local sales taxes, is also among the lower rates nationwide. Of all state and local tax collections in a given year, 38.2% come from taxes besides the major types, the fourth highest such proportion. These include for example, excise taxes on alcohol, tobacco, and motor vehicles.

More than one in every four Nevada workers is employed by the entertainment industry, the highest proportion of any state. Jobs in this industry tend to be relatively low paying. A typical person in Nevada earns $40,742 annually, one of the lower incomes of all states.

4. South Dakota
> Individual income tax collections per capita fiscal 2014: $0
> Personal income per capita: $45,279 (23rd highest)
> Corporate income tax collections per capita fiscal 2014: $29 (6th lowest)
> State & local property tax collections per capita fiscal 2013: $1,231 (24th lowest)

The personal income in South Dakota of $45,279 per capita is in line with the national average annual income of $46,049. South Dakota’s state or local governments do not tax income, and the income goes further in the state than elsewhere. Goods and services in the state are 12.4% cheaper than they are nationwide, making the state the third most affordable state in the country. Corporations are also not subject to income taxes in South Dakota. The state’s combined sales tax rate of 5.8% is one of the lower rates in the country. However, general sales taxes in South Dakota account for 39.9% of taxes collected, the third highest such share.

5. Texas
> Individual income tax collections per capita fiscal 2014: $0
> Personal income per capita: $45,669 (22nd highest)
> Corporate income tax collections per capita fiscal 2014: $0 (tied–5th lowest)
> State & local property tax collections per capita fiscal 2013: $1,560 (14th highest)

Taxes are the primary source of revenue for the government. If state government leaders elect not to levy a major tax, another source of revenue is often needed to replace it. In Texas, where individual and corporate income is not taxed, revenue is largely generated through property and sales taxes. Property taxes collected in the state come to 1.7% of home values and $1,560 per capita, each higher than the averages for all states. Property and sales taxes account for 40.4% and 31.9% of state and local tax collections — each far higher shares than in most other states.

6. Washington
> Individual income tax collections per capita fiscal 2014: $0
> Personal income per capita: $49,610 (12th highest)
> Corporate income tax collections per capita fiscal 2014: $0 (tied–5th lowest)
> State & local property tax collections per capita fiscal 2013: $1,350 (23rd highest)

Due largely to its non-existent income tax, no state relies more heavily on general sales taxes than Washington. In a given year, 44.8% of state and local tax revenue comes from sales taxes, approximately double the average proportion of 22.5% across all states. The high reliance is likely also due in part to the relatively high cost of living in Washington. The cost of rent, goods, and services in the state is 3.2% higher than across the nation, making Washington the 10th most expensive state.

7. Wyoming
> Individual income tax collections per capita fiscal 2014: $0
> Personal income per capita: $54,584 (6th highest)
> Corporate income tax collections per capita fiscal 2014: $0 (tied–5th lowest)
> State & local property tax collections per capita fiscal 2013: $2,173 (7th highest)

Income earned from mining fell 1.9% nationwide in the third quarter of 2015. This decline had a particularly large impact on income growth in Wyoming, which mines around 40% of all coal mined in the country. Still, individuals in the state earn $54,584 annually on average, the sixth highest of all states — and that income is not taxed.

To make up for the revenue not collected through income tax, Wyoming collects more in property taxes. Property tax collections per capita total $2,173, the seventh highest collection nationwide. With the relatively high incomes, however, residents are able to afford more expensive homes. This means the property tax burden is lower. Homeowners pay an average of 0.51% of home values in property taxes, the fourth lowest percentage of all states.

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