Which are the No Income Tax States?
After giving a hefty part of your income to the IRS most people are not done with paying taxes. Unless you live in a no income tax state, you have to give your state (and even city) a slice of your income.
Hard to believe, but only a handful of states have no income tax. These lucky states are:
- South Dakota
Wait, don't pack your bags yet.
Will moving to one of these tax free states make your tax burden easier? Not always. States need revenue to provide important services.
How do they get this revenue if don't have an income tax? They get it from other taxes like property tax, sales tax, license tax, excise tax, fuel tax, estate and inheritance tax. Nevada has a gambling tax (so if you don't gamble it might pay to move to Nevada).
Or possibly they have less services. Many states with high tax rates offer more financial aid to the poor.
But, guess what? The population in these states without income tax are growing faster than other states. Sounds like many people are sold to the no income tax idea and don't look at the other increased taxes or decreased services.
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