There are 9 US states without income tax, but 2 of them still tax investment earnings 

Hello friends, Welcome to my new blog. Here I will be giving you information about states which do not have income taxes, states with no income tax, states without income tax. You will learn about states with tax, states free taxes. You will get full information about tax free states , 9 states without income taxes.

The benefits of moving to a country without income tax are very simple: we do not have to pay income tax on your income.
Currently, seven states — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming — are exempt from individual taxes.

The other two (New Hampshire and Washington) impose taxes on certain types of income only.

Countries With No Income Taxes

Many states in the US levy personal income tax on people who live or earn government money. However, there are a few exceptions. As of 2022, nine states have no personal income tax .Those regions with no income tax and tax free states

  • Alaska
  • Florida
  • Nevada
  • New Hampshire
  • South Dakota
  • Tennessee
  • Texas
  • Washington
  • Wyoming

New Hampshire interest and dividend interest rates are 5% interest on dividends.The rate dropped to 4% by 2024, 3% by 2025, 2% by 2026, 1% by 2027. Thereafter, New Hampshire will completely eliminate its interest rates and dividends.

Effective from 1 Jan. 2022, Washington is taxing the income of high-income people. The state assesses 7% tax on the sale of long-term capital assets, such as

  • stocks,
  • bonds
  • interest on business
  • and other investments

Taxes only apply to long-term profits of more than $ 250,000 per year. Prepayments must be paid on or before April 18, 2023.

Is It profitable to Move to tax free states-

Moving  to a tax free states  is not  always advantageous. Every state needs moneybags to fund 

  • public academes, 
  • make and maintain roads
  • pay state workers
  • and fund other systems.

However, it generally collects it from other duties, similar as property levies or deals levies, If the state does not get that have through state income levies. 

For example, say you live in Massachusetts, which has a flat income duty rate of 5, and your taxable income for the time is$. That would restate into a duty bill of$. Still, which has no state income duty, you could avoid that state income duty liability, If you moved to Florida. 

States with income tax

these are the states with tax

  • In the United States, each state has its own policy for collecting income levies. Inflows levies are just one of the ways that state governments make earnings for operations.
  • In New Hampshire and Tennessee, only interestincome and duty tips are tested.
  • In the remaining seven countries, there’s no state income duty. Still, the state makes profit through other forms of taxation, similar as advanced property duty rates or advanceddeals duty rates. 

Here are the 10 states with the highest income tax rates:

  1. California (13.30%)
  2. Iowa (8.98%)
  3. Vermont (8.95%)
  4. New York (8.82%)
  5. Hawaii (8.25%)
  6. Idaho (7.40%)
  7. Maine (7.15%)
  8. South Carolina (7.00%)
  9. Connecticut (6.99%)
  10. Nebraska (6.84%)

7 states with the lowest personal income tax rates

Only seven states have no personal income tax:

  • Wyoming
  • Washington
  • Texas
  • South Dakota
  • Nevada
  • Florida
  • Alaska

Pros and cons of living in a state without income tax

  • Retirement benefits

Most of the people can assume to pay as a minimum a few taxes throughout retirement — pensions or Social security advantages. However, residents of states without income tax usually get to skip paying nation taxes on retirement plans.

example, a few states have fewer options for public transportation, much less low-priced fitness care, better assets taxes or minimal investment for senior care programs.

  • Cost (and quality) of living

The most important factor to focus is your cost of living. This includes cost-

  • of housing (rental or purchase),
  • food, wages,
  • health care and
  • lifestyle.

The savings you earn on state taxes is not enough to incur to live in another state. For example, someone currently residing in Buffalo, New York, on a $55,000 salary would need to earn over $70,000 to maintain their standard of living in Anchorage, Alaska

Other taxes

State taxes are often used to generate revenue for services such as health care or to infrastructure. Without this revenue system , some states rely more upon heavily on other taxes, such as property or sales, to cover up the loss.

So if you’re a homeowner who currently lives in a state with relatively affordable property taxes, it may not worth for it and importantly, living in a state with no income tax also means we may not take advantage of property tax of that state.

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