United States: Nine states with no income taxes

21 January, 2022
United States Nine states with no income taxes

“Zona de prensa” website describes the nine states with no income taxes. Let’s see:

States with no income taxes

It should be noted that if a state does not have a state income tax, it does not necessarily mean that the cost of living is cheaper. The states without income tax paying are the following:

A. Alaska

This state has no state income or sales tax. The total tax burden on residents is only 5.10% of personal income. There is also no inheritance tax. However, there are property taxes of about $1,182 per $100,000 of assessed home value, which is slightly above the national average. In addition, there is the second highest beer tax of all states.

B. Florida

There is no income tax, but there is a 6% sales tax, and localities can add up to 2%.

C. Nevada

It relies heavily on high sales tax revenues. Well, almost everything has a sales tax, from groceries to clothing, alcohol, and gambling.

D. New Hampshire

It does not tax earned income, but it does tax dividends and interest. It also has no sales tax, inheritance tax, or estate tax. It does, however, have special taxes, and the state’s average property tax rate is the third-highest in the country.

E. South Dakota

It has a sales tax rate of 4.5%. South Dakota property taxes are slightly above the national average. Properties are taxed at a rate of about $1,219 per $100,000 of assessed home value.

F. Tennesse

It does tax investment income, including most interest and dividends. It also has a high sales tax of 7%.

G. Texas

It is indicated that, in some jurisdictions, the sales tax may be as high as 8.25%.

H. Washington

Residents pay high sales and excise taxes. In addition, gasoline is more expensive in Washington than in other states. Added to this is the high cost of living.

I. Wyoming

It is the second least densely populated state. They do not pay income taxes or retirement income taxes. They enjoy low sales tax rates.

Source: Zona de Prensa RD 20/01/22