If you are considering relocating to a new state, taxes should be something you consider. Specifically, there are a number of states with no income tax.
States With No Income Tax
As you well know, paying taxes is a grind. Paying federal taxes is the biggest burden, but state income tax can quickly add up as well. There are, however, some states with no income tax. Depending on your earnings, this can save you hundreds or thousands of dollars a year when tax time rolls around.There are seven glorious states with no income tax. In no particular order, they are:
- Alaska
- Florida
- Nevada
- South Dakota
- Texas
- Washington
- Wyoming
At first glance, a lack of income tax may seem like a great thing. Generally, this is true, but you need to watch out. Many of these states make up the difference by collecting taxes in other ways. They may crank up their sales tax or property taxes for example. The particular approach varies from state to state, but they generally do something. The exceptions to this rule are Alaska and Nevada. Alaska derives most of its money from the oil companies. As you can probably guess, Nevada makes up the difference from the casinos.
If you are considering moving to another state, taxes are something you should definitely take into consideration. While a factor, they should probably not be the overriding one in your decision.
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