 TITLE: Do You Have to Pay Taxes on Unemployment Benefits? CONTENT: Which States Don't Tax Unemployment Benefits?\n---------------------------------------------\nWhether you have to pay state income taxes on your unemployment benefits depends on where you live. Some states don't have income taxes or treat unemployment benefits differently from other types of income.\n*   **Seven states don't have any income taxes**: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.\n*   **Two states only have income taxes for investment income**: New Hampshire and Tennessee.\n*   **Six states exempt unemployment benefits from income taxes**: Alabama, California, Montana, New Jersey, Pennsylvania and Virginia.\n*   **Two states may only tax a portion of your unemployment benefits**: Indiana and Wisconsin.\nIn other states, your unemployment benefits may be treated as regular income and taxed at the same income tax rates. Some cities and counties may also have a local income tax that applies to unemployment benefits. END