Which of the following states does NOT impose an income tax?

Texas is the correct choice because it is one of the few states in the United States that does not impose a state income tax. Instead, Texas relies on other forms of revenue, such as sales taxes and property taxes, to fund state services. This absence of an income tax can attract individuals and businesses looking for a lower tax burden, making the state an appealing location for many residents.

In contrast, California, New York, and Illinois all have graduated income tax systems where individuals pay state income taxes based on their earnings. Each of these states uses the income tax to support a wide range of public services, including education, healthcare, and infrastructure. The significant difference in tax philosophy and implementation between Texas and those states is a crucial aspect of their economic environments and impacts residents' overall financial obligations.