States Without State Income Tax. These nine states impose no income tax on residents, but moving there may not save you money. A state's overall tax burden, which measures the percent of income paid in state and local taxes, could be a more accurate measure of its affordability than its income tax rate alone.
States With No Income Tax H R Block from www.hrblock.com A state that doesn't tax personal income has other taxes and means of obtaining money from its citizens. New hampshire and tennessee only tax interest and dividend by understanding the big picture, you'll better assess the true cost of living in any state without an income tax. Although residents and businesses housed in these seven states must still pay income taxes at the federal level, they are free from state. Without an income tax, alaska's funding depends on petroleum and property taxes. States without a personal income tax might ask residents and visitors to pay more sales tax on groceries, clothes and other goods, as is the case in nevada.
The two are separate entities.
For residents in seven states, however, state income tax is not a factor. Alaska also gets a big chunk of income from oil — and it's not the only state without an income tax to do so. Even though these states may not have an income tax, they have other ways of gaining revenue. Here's a quick rundown on the pros and cons of moving to a state without state income tax as well as information on the seven states noted above. Who wouldn't want to save a few bucks? Data from the missouri economic research and information center shows. And these states without income tax intend to preserve their draw. Texas and new hampshire, for instance, may not tax. Most states tax individual income: The percentage of state income tax varies from one location to another, but some states charge none at all. States without state income tax are those that do not charge income tax on individual and business income earned from state sources.
