How to file your States tax return for free with FreeTaxUSA

If you want to file your taxes without paying expensive fees, FreeTaxUSA is one of the best platforms available in 2026. It lets you file your federal tax return for free and, in most cases, also lets you file your state tax return for free or at a low cost.

In this guide we’ll explain how FreeTaxUSA works, which states have no income tax at all, and how you can file your taxes quickly.

What Is FreeTaxUSA and How Does It Work?

FreeTaxUSA is an IRS-approved e-file provider that helps people file both federal and state tax returns online.

• Federal filing is 100% free for everyone.

• State filing costs about $14.99 per state, but FreeTaxUSA often runs promotions for free state filing during tax season.

It’s designed for individuals, freelancers, and small business owners who want accurate, low-cost tax filing without hiring an accountant.

Which States Allow Free State Tax Filing?

Some states have their own free e-file programs that you can access through FreeTaxUSA or the IRS Free File system.

Examples

• California (CalFile) – Free filing for eligible residents.

• Massachusetts (MA WebFile) – Free direct state filing.

• New York (Free File) – Works through IRS partners like FreeTaxUSA.

When you start a return on FreeTaxUSA, the system automatically checks whether your state qualifies for free filing.

Tax-Free States with No State Income Tax

States with Low (OR) Limited Taxes

States That Tax Only Investment Income

• Tennessee – No wage income tax; only taxes dividends and interest.

• New Hampshire – Similar rule; only taxes investment income.

States with Low Property or Sales Taxes

• Hawaii: Among the lowest property tax rates.

• Alabama: Affordable property ownership.

Step-by-Step: How to File Your State Tax Return for Free

Here’s how to file your state tax return for free with FreeTaxUSA:

• Step 1: Go to Free Tax USA website.

• Step 2: Create a free account and start your federal tax return.

• Step 3: When you reach the state filing section, check if your state offers free or discounted filing.

• Step 4: Review and e-file directly through FreeTaxUSA. You’ll receive a confirmation email from both the IRS and your state department of revenue.

• Step 5: If your state charges a fee, look out for FreeTaxUSA promo codes during tax season for discounts or free offers.

Tips to Maximize Your Savings While Filing

• File early to avoid state e-file surcharges.

• Double-check eligibility for free state filing programs.

• Use FreeTaxUSA’s deluxe upgrade only if you need audit support or advanced features.

• Compare total costs some states charge processing fees even through free file programs.

• Always print and save a PDF copy of your filed return.

FAQs

1. What does free tax in the USA mean?
Free tax in the USA refers to leveraging state-specific tax policies to minimize or eliminate certain tax liabilities, thereby enhancing one's disposable income and financial freedom.

2. Are there states in the USA with no income tax?
Yes, there are several states, including Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming, that do not levy a state income tax, embodying the free-tax USA ideal.

3. How can living in a tax-free state affect my overall tax burden?
Residing in a tax-free state eliminates state income tax liabilities, potentially saving you a significant amount of money, which can be redirected towards savings, investments, or personal expenditures.

4. What are some strategies for maximizing benefits in low-tax states?
Maximizing benefits involves careful financial planning, including investing in tax-advantaged accounts, exploring state-specific tax credits, and consulting with a tax professional to tailor strategies to your unique situation.

5. Can moving to a tax-free or low-tax state impact my property and sales taxes?
Yes, while moving to a tax-free state reduces income tax, property and sales tax rates vary and may offset some of the benefits. It’s crucial to consider the overall tax implications of a move.

6. What should I consider before relocating to a free-tax USA state?
Consider factors such as cost of living, employment opportunities, quality of life, and how state taxes (or lack thereof) align with your financial goals.

7. How do retirees benefit from free tax in the USA??
Retirees may enjoy lower tax liabilities on their retirement income, stretching their retirement savings further and enhancing their quality of life.

8. Are there hidden costs in tax-free states?
Some tax-free states may have higher costs in other areas, such as property taxes or the cost of living, which could offset the benefits of no state income tax.

9. How does the absence of a state income tax influence economic growth in those states?
The absence of state income tax can attract businesses and skilled professionals, fostering economic growth and potentially increasing job opportunities.

10. Do tax-free states offer a good quality of life?
Many tax-free states boast high quality of life metrics, including access to nature, cultural amenities, and strong communities, though individual preferences play a significant role.

11. How can I ensure my financial planning aligns with a free-tax USA lifestyle?
Engage with financial and tax advisors to create a comprehensive financial plan that considers your income, investments, and tax implications based on your residency.

12. What are the best resources for researching state-specific tax policies?
State government websites, tax advisory services, and financial planning tools offer comprehensive insights into state-specific tax laws and benefits.

13. Can moving to a tax-free state affect my federal tax liabilities?
Your federal tax liabilities generally remain unchanged by moving to a tax-free state, as federal taxes are consistent across the USA.

Follow SKFinancial on Facebook / Twitter / Linkedin / Youtube for updates.