In this small guide, I will show nine states with no income tax.
Everyone loves to save money, and that’s a good thing. And the fact is that no one likes to pay taxes. Everyone tries their best to save money for rainy days. It is best to live in a state where there is no income tax.
According to our in-depth research, there are nine states where income tax is not levied. These include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Although Tennessee only levies investment tax. Yes, income tax was abolished entirely from January 2021, while New Hampshire does not tax wages earned.
9 States with No Income Tax
Advantages & Disadvantages of States With No Income Tax
No income or sales tax is levied in the state of Alaska. The total tax burden on the people of Alaska, including income tax, sales tax, excise tax, is just 5.16% of their average income, Which is less than all the states in the United States. That’s why Alaska is the best state to live in.
Florida is the southeasternmost U.S. state, with the Atlantic on one side and the Gulf of Mexico. Property and sales taxes in Florida are higher than the national average, The total tax burden is only 6.82%, which is the fifth-lowest in the United States.
Texas is a state in the South Central region of the United States. With more than a population of 29.1 million. Texas is an expensive state in terms of taxes. Sales and property taxes in Texas are higher than in all states. The total tax burden is 8.20% of the income of the people of Texas.
The revenue of Nevada highly relies on its high sale taxes. The government of Nevada imposed high sale taxes on groceries, clothes, medicines, gambling, and alcohol. The total tax burden is 8.39% of the income of the people of Nevada.
South Dakota is also one of the no-tax states of the united states. The revenue of South Dakota highly relies on its high sale taxes on alcohol items and cigarettes. South Dakota has higher than average property tax rates, but lower sales tax rates than many other states. The total tax burden is 7.86% of the income of the people of South Dakota.
Wyoming is the 10th largest state by area, it is also the least populous and least densely populated state in the adjoining United States. Wyoming has no personal or corporate state income taxes, and the people of Wyoming also enjoy low property and sales taxes. The total tax burden is 6.47% of the income of the people of Wyoming.
New Hampshire makes the bulk of its tax revenue by levying select sales taxes (otherwise known as excise taxes) and a corporate income tax. New Hampshire also imposed high taxes on alcohol. The total tax burden is 6.85% of the income of the people of New Hampshire.
Officially the State of Washington, Washington is a state located in the Pacific Northwest region of the Western United States. Washington’s population is young mainly. The peoples of Washington have to pay high sales and excise taxes. The total tax burden is 8.32% of the income of the people of Washington.
In this small guide, I am telling you states with no income tax and informing you about the tax burden of these states. I hope this guide will find beneficial for you😊.