We know that not having to pay income tax can be a big reason for you to want to move. Since prices are going up all the time, not paying your income taxes is not a small thing.
It was found that nine states in the U.S. do not have an income tax, according to Roadway Moving. It doesn’t mean that those are cheaper in general. Still, it gives them a unique spark that could affect your next move!
The US States With No Income Tax
Nevada
Nevada doesn’t have a state income tax, and its property tax is one of the lowest in the country. To be exact, Nevada’s property taxes are 0.48%, which is almost twice as low as the national average of 0.999%. With a total tax burden of 8.23%, this state is ranked 22nd out of 50.
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There is a catch. Nevada has high sales taxes that come from taxes on food, clothes, booze, and gambling. There are a few instances, though. In Nevada, you won’t have to pay sales tax on some medicines, machines, or medical devices that you are given.
South Dakota
When people talk about South Dakota, they need to talk about why there are no state income taxes! South Dakota has high property and sales taxes. It is also home to a few big credit card companies, which means that people don’t have to pay state income taxes.
To put it into numbers, South Dakota’s total tax load is 7.37 percent. Most people pay $2,900 a year in property taxes, and sales taxes can go up to 8%. Prescription drugs, replacement parts, and animals are the things that don’t have to pay sales taxes.
Also Read: Here are the Best Rules of Real Estate Investing in United States, According to Study
Florida
This one is special because it’s the place to be when you leave! Florida has great weather and beautiful beaches, and it also has tax breaks for retirees. In Florida, there is no Social Security income tax, no tax on withdrawals from retirement savings, and no marginal state tax. For people who aren’t retired, you should know that Florida’s total tax rate is 6.97% and sales taxes range from 2.5% to 5%.
Texas
It is 19th on the list of states with the lowest prices for everything. The high property and sales taxes add up to 8.19% of its total tax load. Still, it is one of the cheapest places to live in the country, and many Californians have moved there.
In terms of low taxes, it is one of the twenty best states, but its property taxes are the seventh highest in the country. That’s $3,900 a year. All sales, rents, and leases are subject to 6.25% sales tax.
Alaska
This is the first state on our list that doesn’t have sales or income taxes! That is correct, you read it correctly. That’s not the end. Out of all 50 states, Alaska has the least amount of taxes. It’s only 5.10 percent. This is the best thing that could happen.
It’s time for us to tell you: living in Alaska costs a lot. Alaska has the second-highest beer tax in the U.S., so your beers will cost more than in any other state. Alaska’s only flaw is that it has a very high property tax rate (51.8%).
Wyoming
Wyoming is the second least heavily populated state, so there aren’t many people living there. People who live in Wyoming like that there are no business, household, or retirement income taxes. Besides that, they have low sales taxes (up to 8%). With property taxes at 0.61%, Wyoming has the 10th lowest taxes in the country! This adds up to 6.14% of our income being taxed. One way Wyoming makes up for not having any taxes is by taxing oil.
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