Of the nine U.S. states that do not impose an income tax on wages, which two states do tax dividends and other investment income
Answer: B. Currently, residents of seven states—Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming—don't pay any state income tax. Although residents of New Hampshire and Tennessee also avoid paying state tax on earned income, they are taxed on dividends and income from investments.
If you're planning to relocate in retirement, you may want to keep one of these low-tax states in mind!