States without state income tax refer to those jurisdictions within the United States where individuals and businesses are not subject to a levy on their income earned within the state. Notably, the Lone Star State of Texas exemplifies this concept, having operated without a personal income tax since its inception in 1845.
The relevance of such states lies in the economic advantages they offer. The absence of state income tax often attracts businesses and individuals seeking lower tax burdens. Moreover, the historical development of this concept dates back to the 1920s, when many states abolished their income taxes due to the belief that they were unfair and inefficient.