2025 State Income Tax Filing: Who Must File, Audit Risks, and Nonconforming Provisions (EX: TX, NY)

As of February 11, 2026, 38 U.S. states impose an individual income tax, with nine reducing rates in 2025. Taxpayers in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming owe no personal income tax. Nine non-listed states also do not levy such taxes. Nine states are not conforming to recent federal changes, potentially disqualifying new 2025 benefits like the additional senior deduction and the no-tax on overtime and tips. Residents in these states may need to add back claimed amounts on state returns. Nine states generally follow federal filing dates (typically April 15), but rules vary by state and can be affected by disasters. Errors, incomplete forms, excessive deductions, or failing to file may trigger audits, with states often contacting taxpayers by mail for additional information. Note: Washington, D.C., passed an emergency bill to decouple its tax code from recent federal changes, but a pending congressional measure seeks to overturn it, potentially requiring a suspended filing season if passed this week.