No income tax states, tax friendly states.

This article will help you get a better idea about whether it’s worth moving to a state with no income tax. Thinking of moving to a new state, whether you’re looking for a place to retire or simply hoping to save money, you may want to consider moving to a state that doesn’t impose state income tax, so which state has no income tax? Currently, only seven U.S states do not require residents to fork over part of their paychecks, these states include Alaska, Florida, Nevada South Dakota, Texas, Washington and Wyoming, in addition new Hampshire and Tennessee do not require residents to pay taxes on earned income, however they do require that residents pay taxes on dividends and income from investments.

Next we need to check the pros and cons of moving to a state without income tax, as well as information on the seven states. What are the benefits of living in a state with no income tax? Living in a state that doesn’t require income tax can be a major advantage, especially to those in high income households. While many states force high earners to pay high taxes, states without personal income tax do not tax their earnings at all, this allows high earners to save much more of their money. For this reason many wealthy individuals choose to live the majority of the year in states without a state income tax, of course not having to pay state income tax. Also benefits individuals of all income classes, who are able to pocket their hard earned money and save for retirement, vacation school, tuitions and much more. But there are also downsides to living in a state with no income tax, be aware that if a state doesn’t impose state income tax, it typically makes up for it by raising taxes elsewhere. For instance, while Texas and New Hampshire do not tax earned income, they do have exceptionally high property tax rates. In addition, many of these states also impose high sales tax on groceries and goods. Tennessee has one of the highest sales tax rates in the country, charging a seven percent sales tax statewide. Texas and Nevada have above average sales taxes and Texas also has higher than average effective property tax rates. Florida relies on sales taxes and its property taxes are above the national average.

There is more about these seven states with no income tax. First, in addition to not taxing its residents on their income, Alaska happens to be a spectacular place to live for starters. The last frontier actually pays its residents through its established permanent fund dividend program; this program was put into place back in 1976, as a way to conserve a portion of the state’s revenue from mineral resources and disperse it among Alaska’s residents. In addition, Alaska offers some of the best sightseeing, hunting and fishing in the country so if you’re into that, Alaska is the best place for you. Number 2, Florida. In addition to saving money on taxes, there’s plenty to love about living in Florida, the 200 plus days of sunny weather makes it easy to enjoy life outdoors as much as possible, home to numerous award-winning beaches, theme parks and attractions, Florida residents can easily vacation where they live. The state is also exceptionally diverse with residents hailing from all over the country and all over the world. Number 3, Nevada. From the glitzy lights of Las Vegas to the stunning red rock canyon national conservation area, Nevada’s attractions are some of the most famous in the world, in addition to its lack of state income tax, Nevada offers residents plenty of affordable neighborhoods, good grades and interesting places to see. The state’s natural beauty and breathtaking landscapes make it especially alluring to those who enjoy the great outdoors, the state’s many high-end hotels, as well as its casinos and world-class restaurants also attract the ritzy international crowd. Number 4, South Dakota. In addition to not having to pay personal income tax, South Dakota residents have plenty to love about living in this majestic state, known for its Mount Rushmore national memorial with the faces of Washington, Jefferson, Roosevelt and Lincoln carved into its granite face, South Dakota attracts millions of visitors each year. Besides the obvious outdoor attractions the state offers, residents benefit from a strong job market, healthy economy, and a low cost of living. Then there’s Texas. The lone star state is known for more than its low taxes, in fact it’s one of the most popular states to live, work and go to school in America. Texas’ thriving economy, booming businesses, and stable job market draws scores of young professionals and students each year, in addition to its tasty cuisine, numerous attractions and fanatic sports culture, makes it an especially fun place to live. Families will also find affordable real estate and top schools for their children. Number 6, Washington State. In addition to the money you’ll save on taxes, Washington’s strong job market and many major companies make it possible for residents to earn a high income. Employers in the state include big names such as Microsoft, Google, Amazon, Starbucks and Boeing. The state’s many outdoor activities also make it a particularly fun place to live. Washington’s three national parks, Olympic, North Cascades and Mount Rainier, are just a few of the more popular spots for outdoor enthusiasts. Last but not least, Wyoming. Without a doubt the beautiful state of Wyoming, is one of the most popular destinations in the world. Home to the Grand Teton National Park and abundance of wildlife, Wyoming offers residents scenic surroundings and plenty of wide open spaces. Other benefits to living in Wyoming besides its low taxes are its low crime rates, lack of pollution and affordable real estate.