The 7 States With No Income Tax

There are seven U.S. states with no income tax, yet a life of paying less taxes isn't as simple as picking up and moving to one of them. You should take into consideration how each state makes money, and also local taxes.

The 7 States With No Income Tax

  1. Alaska
  2. Florida
  3. Nevada
  4. South Dakota
  5. Texas
  6. Washington
  7. Wyoming
     

While these states have no income taxes, they fund themselves through other taxes including property taxes, corporate taxes, and sales taxes. If you are considering moving, you should consider all the taxes in a state and how those will affect your particular situation.

How states make money with no income tax
Let's go through the states with no income tax one by one using the Tax Foundation's most recent data, which is for 2010. The Tax Foundation has been collecting data on taxes since 1937 and its data takes into consideration an average of both state and local taxes.

1. Alaska
Alaska is known for its pristine wildlife as well as its oil and gas resources, most notably its North Slope with the famous Prudhoe Bay oil field. Alaska funds itself with royalties from oil and gas production as well as a 9.4% corporate income tax rate. In 2012 oil and gas royalties made up 83% of the state's revenue and oil and gas corporate income taxes made up just under 8% of revenue. The state has no sales tax but local municipalities have varying sales taxes and property taxes. In 2010, per capita property tax was $1,865, and combined with all other taxes, the per capita state and local tax paid was $3,214 according to the Tax Foundation.

Those 65 and over should note that Alaska exempts senior citizens from the first $150,000 of assessed value for property taxes.

2. Florida
Florida is known for its great weather (minus hurricanes), tourism, and snowbirds. Florida funds itself with a 6% sales tax as well as a 5.5% corporate income tax. The sales tax made up 73% of the state's revenue in fiscal year 2011-2012, with the corporate income tax making up 8.3%.

In 2010, per capita property tax was $1,507, and combined with all other taxes, the per capita state and local tax paid was $3,728 according to the Tax Foundation.

3. Nevada
Nevada is obviously best known for gambling and tourism. The state funds itself through a 6.85% sales tax. In the 2011-2012 fiscal year, sales and use taxes made up 71% of the state's revenue. The state has no corporate income tax, which has helped it attract tech companies and start-ups from high-tax California. Many companies take advantage of the lack of a corporate income tax, and Las Vegas in particular is attracting start-ups through the efforts of Zappos' CEO Tony Hsieh's DowntownProject. In 2010, per capita property tax was $1,297, and combined with all other taxes, the per capita state and local tax paid was $3,297 according to the Tax Foundation.

4. South Dakota
South Dakota is known for Mt. Rushmore, Badlands National Park, and Wall Drug. (Have you dug Wall Drug?) The state funds itself through a 4% sales and use tax, a $0.22-per-gallon gas tax, and fees on vehicles, but has no corporate income tax. In fiscal year 2012 the sales and use tax made up 65% of the state's revenue, motor fuel tax made up 8%, and car titles and registration fees made up another 8%. In 2010, per capita property tax was $1,142, and combined with all other taxes, the per capita state and local tax paid was $3,035 according to the Tax Foundation.

5. Texas
Texas funds itself through a 6.25% sales tax, taxes on motor vehicle sales and fuel, a 0.5%-1% franchise tax, and taxes on oil and natural gas production. In fiscal 2012 the sales tax made up 39% of the state's revenue, motor vehicle sales and fuel taxes made up 10.8%, franchise taxes made up 7.3%, and taxes on oil and natural gas made up 5.8%. In 2010, per capita property tax was $1,292, and combined with all other taxes, the per capita state and local tax paid was $3,104 according to the Tax Foundation.

6. Washington
Washington funds itself through a 6.5% sales tax and a gross receipts tax on businesses. Washington benefits from being surrounded by Idaho and Oregon, both of which have corporate income tax rates above 7% and individual income tax rates above 7%. In fiscal 2012 the sales tax made up 64.7% of revenue while the gross receipts tax contributed 17.6%. In 2010, per capita property tax was $1,257, and combined with all other taxes, the per capita state and local tax paid was $4,261 according to the Tax Foundation.

7. Wyoming
Wyoming funds itself through a 4% sales tax, taxes on natural resources production, as well as property taxes, which for residential property is 9.5%. Most of the state's revenue comes from its natural resource production and property taxes on resource owners. In 2010, per capita property tax was $2,663, and combined with all other taxes, the per capita state and local tax paid was $3,721 according to the Tax Foundation.

More than just states with no income tax
There's more to consider before moving than just tax rates, but it doesn't hurt to start there, especially if you are living off interest and dividends.

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Read/Post Comments (91) | Recommend This Article (45)

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  • Report this Comment On April 05, 2013, at 11:58 AM, bgnunley wrote:

    You forgot the state of TENNESSEE! We do not have a state income tax.

  • Report this Comment On April 05, 2013, at 12:04 PM, mogonza wrote:

    Also forgot Montana. Geez, maybe do some research first?

  • Report this Comment On April 05, 2013, at 12:15 PM, NofoolishMottley wrote:

    You also forgot New Hampshire. No income tax or sales tax. Where did you get you information?

  • Report this Comment On April 05, 2013, at 12:16 PM, TMFDanDzombak wrote:

    @bgnunley Tennessee has a 6% state income tax on dividends and interest income.

    @mogonza Montana has an income tax. From the Montana Department of Revenue:

    Montana residents are taxed on all income, regardless of source, except that income which is statutorily exempted from taxation. Part-year residents and nonresidents are taxed on all Montana source income that is derived from or connected to Montana sources. Additionally, part-year residents are taxed on all non-Montana source income generated during or attributable to the period of the tax year in which they resided in Montana.

    Montana's individual income tax was enacted in 1933 and continues to this day to be the largest source of state tax revenue. The state's income tax is viewed as a "progressive" tax system because of the distribution of tax burden and because income is taxed according to a graduated rate structure with rates ranging from 1% to 6.9% of taxable income.

    Taxable income is derived from gross income by making certain adjustments and taking a variety of allowable deductions and exclusions. This tax generally applies to the net income of Montana residents and nonresidents.

    http://revenue.mt.gov/forindividuals/taxes_licenses_fees_per...

  • Report this Comment On April 05, 2013, at 12:21 PM, mhw72 wrote:

    This is definitely motley FOOL's, as they obviously do no fact checking before they print an article. As a previous poster said, Tennessee has no state income tax. I should know, I live here!

  • Report this Comment On April 05, 2013, at 12:23 PM, MStev3ns wrote:

    New Hampshire also has no income tax. What happened to research?

  • Report this Comment On April 05, 2013, at 12:24 PM, paulc2013 wrote:

    There is NO SUCH THING as a free ride.

    Texas (for example) makes up for it in property tax. If you live in a metro area they hit you BIG TIME for schools and local govt.

    I found the taxation in the SW Houston area to be oppressive compared to paying just state taxes in Colorado.

  • Report this Comment On April 05, 2013, at 12:24 PM, TMFDanDzombak wrote:

    @Nofoolishmoney New Hampshire has a 5% income tax on dividends and interest income.

  • Report this Comment On April 05, 2013, at 12:26 PM, Driving50274 wrote:

    I considered working in Florida for a year, that would have been a good time to roll my traditional IRAs into my Roth.

  • Report this Comment On April 05, 2013, at 12:29 PM, tastytart7777777 wrote:

    Florida has a 7% sales tax. Seem's as though whomever wrote this didn't really fact cjeck much of anything. May I have a job writing for this site?

  • Report this Comment On April 05, 2013, at 12:29 PM, TMFDanDzombak wrote:

    @mhw72 Tennessee has a 6% state income tax on dividends and interest income.

  • Report this Comment On April 05, 2013, at 12:30 PM, NofoolishMottley wrote:

    Hey Dan, NH has no income tax on earned income and no sales tax. Sloppy research...

  • Report this Comment On April 05, 2013, at 12:30 PM, mec9534 wrote:

    Texas used to be fully funded by oil money. When that was taken away, the democrats were in control of the state and initiated sales tax-two percent at the time but open ended. When democrats are in power, the threat of a state income tax is often brought up. When democrats are not in power, there is no such talk.

  • Report this Comment On April 05, 2013, at 12:32 PM, TXMORAN wrote:

    No income tax in TX results in another hidden gov't money grab. The property taxes constantly go up based on Gov't. appraisals. The year after they "reduced" the property tax by their stated 30%, my property taxes went up. We Texas residents are really renting from the gov't.

  • Report this Comment On April 05, 2013, at 12:34 PM, TMFDanDzombak wrote:

    @NofoolishMottley

    The article is not "9 States with Little-to-No Income Tax"

    The article is "7 States With NO Income Tax"

    New Hampshire and Tennessee have income tax on dividends and interest income, as such they are not on the list.

  • Report this Comment On April 05, 2013, at 12:35 PM, ElliotTeitelbaum wrote:

    Despite these other ways that these states make their budgets, the fact is that I would be better off in those states than I am in New York. In NY I have both income taxes AND sales taxes... as well as city/municipality real estate taxes and state gas taxes. Even Nevada's 6.85% sales tax looks good compared to the 8.25% sales tax in NY (over and above the income tax).

  • Report this Comment On April 05, 2013, at 12:35 PM, kybob wrote:

    How much money do they get from the Fed. Gov.?

  • Report this Comment On April 05, 2013, at 12:35 PM, buzzltyr wrote:

    Why do we never mention property tax. I pay $2800 a year, a house in texas at that price would be $12000. An oceanfront California home is worth a minimum 4 million, that would be 80,000 a year in texas, most of these in California have lived there a long time and are paying under $10,000.

    Be then they say texas real estate is not expensive so taxes are not high. That is the whold point, California people have made a fortune on real estate. More than enough to pay for their state taxes

  • Report this Comment On April 05, 2013, at 12:38 PM, undermind wrote:

    The author's article is accurate and his research is referenced accordingly.

  • Report this Comment On April 05, 2013, at 12:40 PM, dadicesare wrote:

    You forgot New Hampshire (how?!). We have no state income tax but the real estate property tax is rather significant. It is still a wonderful state to live in.

  • Report this Comment On April 05, 2013, at 12:47 PM, jacobsgramma46 wrote:

    They forgot to mention that Alaska PAYS every man, woman and child legal resident once a year out of their Permanent Divident Fund (PDF), which in some years has been over $1K, from profits in the previous year, so that per capita of $3K a year is considerably less.

  • Report this Comment On April 05, 2013, at 12:55 PM, SmarterThanGoo wrote:

    Compare NY vs FL.... FL sales Tax - 6%, State Tax - zero.....NY sales tax -8%, higher in NYC...NY State tax is off the wall...... FL has lower property tax, lower state fees, less crime (no stupid gun laws)... The above article is like comparing apples and manure.

  • Report this Comment On April 05, 2013, at 12:56 PM, jacobsgramma46 wrote:

    It should also note that although some burroughs like Juneau, which does have a 4% sales tax, residents 65 and older are offered exemptions from the sales tax, and also do not charge seniors to ride the buses, either. Alaska is a great state for seniors to retire in taxwise.

  • Report this Comment On April 05, 2013, at 1:01 PM, splinterbutts wrote:

    NH has tax on dividends and interest income after a certain amount, but that is not an income tax and we have no sales tax. Whomever approved your story should be in as much hot water as you should be as this is shoddy writing, and that's coming for someone who use to be the editor in chief for a large newspaper.

  • Report this Comment On April 05, 2013, at 1:16 PM, bgnunley wrote:

    TN's tax on dividends and interest is only if you have more than $1250 or $2500 if married filing jointly. Most people do not have more than that with todays interest rates, etc.

  • Report this Comment On April 05, 2013, at 1:18 PM, sra68 wrote:

    I have to laugh at the comments about Texas and how "high" the property are. We moved to Texas (Dallas suburb) from a suburb of Chicago. Not only is Illinois' state income tax 5% the property taxes there blow the ones down here in Texas away. I had a house that was smaller by 1,000 square feet in a very similar neighborhood & paid $3,000 more in property taxes there.

  • Report this Comment On April 05, 2013, at 1:40 PM, NEastTex wrote:

    In Texas, as an individual, you pay City, County and School District property taxes. That's it. I'm not sure what the author is referring to by "state property taxes". As in most states, our counties are contiguous, so everyone has to live is some county by default. The citizens of the counties set their own tax rates. The counties are responsible for all the unincorporated territory within their county border. The cities take care of themselves and the school districts keep the school houses and teachers going. Texas does not have a state property tax. I really wonder about the accuracy of this article. Don't know about commercial property.

  • Report this Comment On April 05, 2013, at 1:42 PM, blambu56 wrote:

    You forgot TN, no state income tax here folks!

  • Report this Comment On April 05, 2013, at 1:44 PM, KeepC wrote:

    Splinterbutts, how is a tax on interest INCOME not an income tax?

  • Report this Comment On April 05, 2013, at 1:47 PM, mdk0611 wrote:

    Some of you are confusing a tax on EARNED income with a tax on income. Tennessee, New Hampshire et. al. might not tax wages, but they do tax dividends and interest as income.

  • Report this Comment On April 05, 2013, at 1:47 PM, Gowithit wrote:

    Using sales tax figures is often misleading, due to the fact that some states do not sales tax everything. For example, in Texas, everything has a sales tax, including necessities and groceries, so their sales tax is way more heavy handed to poor and middle class folks who spend between 20-40% of their budgets on food and beverages at home. In Mass, they have the same percentage sales tax, but provide exceptions for consumer staples such as groceries, which means to your average poor to middl class family, it is a huge tax decrease between states.

  • Report this Comment On April 05, 2013, at 1:49 PM, ohiodale wrote:

    I think every one of these no income tax states look better than all other states that have income taxes. This article is trying to make it sound as if the sales taxes and property taxes in these states off-set the lack of state income taxes and this is not true. I live in Ohio and pay very high state income taxes (up to 6%), high sales taxes (7%), and a local income taxs ) 2.25%). I would love to move to Texas or Flordia and get out of the high tax union state of Ohio. I calcualted I could save $1000 per month by moving to Florida. Of course salaries in Florida are a little less so I would not save the entire $1000 per month.

  • Report this Comment On April 05, 2013, at 2:17 PM, lcwrite wrote:

    I read someone complaining about the overall taxes in Texas. I used to have a house outside Granbury. The tax appraised value was about $155k and the rate was about 2.01% so I was paying a bit over $3,000/year. I moved to California where I had an 8% income tax rate on a salary over 100k.

    I will take the property tax in Texas over income tax in most other states.

    And others have commented on Tenn. There is a flat-tax rate applicable only to dividend/interest income, there is no income tax on wages/salary.

  • Report this Comment On April 05, 2013, at 2:45 PM, tnvol16 wrote:

    Contrary to a previous poster's assertion that Texas applies sales tax to food, Texas does not apply sales tax to food. Also, if you choose to rent in Texas, you will pay very little state or local taxes. So people can choose taxation level with their own lifestyle choices. In income tax states, you can only avoid taxes by not working and earning income.

  • Report this Comment On April 05, 2013, at 2:47 PM, flyingdals wrote:

    And yet all these states except Texas draw more moneyout of Washington than they pay in (especially Alaska). That sounds fair in a backwards sense. For all you folks in Tennessee - yes you do tax income as stated by others, on dividend and interest income - and if that is your main source of income, Tennessee is not the best place to be.

  • Report this Comment On April 05, 2013, at 2:58 PM, ScottyMax wrote:

    Wyoming's resident property taxes cannot be in excess of 9 percent. By your per capita property tax rate that would mean that the average property was assessed at less than $30,000.

  • Report this Comment On April 05, 2013, at 3:04 PM, gmiles42 wrote:

    Sales Tax rates in Texas vary...for example, in Dallas the sales tax is 8.25%...not the 6.25% stated in the article.

    From the state of Texas website...

    "The Texas state sales and use tax rate is 6.25%, but local taxing jurisdictions (cities, counties, special purpose districts, and transit authorities) may also impose sales and use tax up to 2% for a total maximum combined rate of 8.25%."

  • Report this Comment On April 05, 2013, at 3:11 PM, Jazz92 wrote:

    TN has not state income tax! But has a 9.75%sales tax...plus a entertainment tax....hotel tax...property taxes...plus high gas tax...and more. The good thing about all these taxes is you only pay them on what you personally use or purchase. They are not one tax fits all.! It is fair!

  • Report this Comment On April 05, 2013, at 3:15 PM, timpb09 wrote:

    tastytart "Florida has a 7% sales tax. Seem's as though whomever wrote this didn't really fact cjeck much of anything. May I have a job writing for this site? "

    Looks like you don't get a job writing. Florida sales tax is 6%, counties within Florida can include additional taxes. Thus each county can be different, but the minimum is 6%.

  • Report this Comment On April 05, 2013, at 3:33 PM, thoms9p wrote:

    New Hampshire has no income tax on earned income, only on interest and dividends.

  • Report this Comment On April 05, 2013, at 3:34 PM, texasduke wrote:

    In Texas there is no income tax. In Texas you pay a greatly inflated amount for a piece of property, then rent it from the state in a form of extortion called PROPERTY TAX.

  • Report this Comment On April 05, 2013, at 3:50 PM, alibamf wrote:

    I'm pretty sure that Wyoming's sales tax is 5%. Maybe research this stuff before you publish an article?!

  • Report this Comment On April 05, 2013, at 3:51 PM, alibamf wrote:

    yea and in Wyoming there is no sales tax on groceries

  • Report this Comment On April 05, 2013, at 4:02 PM, Gowithit wrote:

    Weird, I did the loop of San Antonio/Dallas/Houston this past week and paid tax on food in all 3...Strange.

  • Report this Comment On April 05, 2013, at 4:15 PM, asxdf wrote:

    The quoted Washington state sales tax of 6.5% is misleading as most counties and cities add their own sales tax on top of the 6.5%. Average sales tax in Washington state is closer to 9.5%.

    But soon the state will also be getting money from taxing legalized pot!

  • Report this Comment On April 05, 2013, at 4:16 PM, goodguymidtn wrote:

    Tennessee comments:

    Tennessee does NOT have an income tax. Is against the State Constitution.

    There is a tax called the "Hall Tax" which is 6% on dividends and interest income .

    Retirement accts are exempt as well as many other types of investment, i.e. TN banks, insurance companies, etc.... So with this, very few people ever pay the tax.

    I'm 50, lived in TN my entire life and never paid this tax.

  • Report this Comment On April 05, 2013, at 4:18 PM, Joe0987654321 wrote:

    NH does have an unearned income tax. I should know as I pay it every year!

  • Report this Comment On April 05, 2013, at 4:19 PM, GatorZone wrote:

    Why are the shaded states different colors with no legend? Florida sales tax is 7% as some have corrected (groceries exempt), but our revenue is primarily from tourism. Not only do visitors pay sales tax, but also transportation taxes, air fare taxes, hotel taxes and the theme parks tickets have a special high tax rate. Florida residents don't have to pay that tax when buying tickets. Disney, Universal and Bush Gardens (2 locations) are the main reason we don't have state income tax becuase they are an enormous source of income from outside our state. We also have two NFL football teams being the Miami Dolphins and the Jacksonville Jaguars which also generate substantial revenue, however they are mostly supported by residents.

  • Report this Comment On April 05, 2013, at 4:27 PM, hdfasdf wrote:

    If you have to defend your article, it is a bad misleading article.

  • Report this Comment On April 05, 2013, at 4:27 PM, dreamimmigrant wrote:

    Texas property taxes argument making up for no state tax is a lousy one. You can buy two to three houses in Texas with the same money you would spend in NY or PA. If you maintain the same standard of living, you would still have plenty of cash and your property taxes would still be lower in magnitude though percentage wise, it sounds high. A 3 bedroom house in descent suberb of long island, NY cost anywhere from $450,000 to $650,000 where as the same in Houston would cost from $165,000 to $250,000 (my inlaws moved into a new 4 bedroom 3100 sq foot house in a new community at a good school district for $250,000). I lived in NY and moved down to Texas.

    I know have many family friends who moved down from NY and PA in the last two years. No state taxes, low cost of living and above all, no micromanagement from political billionaire elites telling us how much soda we can drnik from a cup!

  • Report this Comment On April 05, 2013, at 4:56 PM, x1134x wrote:

    The other thing not mentioned is you want to live in a state with no income tax, but on the border, next to a state with no sales tax.

    The norther wyoming state border with montana is an example. You live in WY and pay no income tax. You drive to MT to shop and pay no sales tax. You're "Supposed" to report your purchases and pay a "use tax" on them, but that's impossible to enforce and never an issue.

  • Report this Comment On April 05, 2013, at 4:58 PM, luckyagain wrote:

    For what it is worth, please note that all of these tax rates were per capita. So for Florida the per capita state and local tax paid was $3,728, which means that for a family of four it was $14,912.

    All state and local governments need to have sufficient taxes to pay for their services. One way or another, the states have to collect enough money to run their government.

    I am sure that millionaires and billionaires appreciate that the taxes fall upon the middle class instead of themselves.

  • Report this Comment On April 05, 2013, at 5:00 PM, x1134x wrote:

    You guys quoting sales tax rates, are confused. Your rate is the state rate PLUS your county and city rate. The rate quoted in the article is JUST the state rate. So if in wyoming you're paying 5%, that means your county or city is taxing you 1% and the state is taxing you 4%.

    And I laugh at the commenter who said tennesse has no income tax because its "against the constitution", then goes on to detail how the "income tax" is actually law there, and that tennesee really does have an income tax.

  • Report this Comment On April 05, 2013, at 5:01 PM, AlaskaDan01 wrote:

    Although Alaska has the pfd which gives us residents money for living here there are rules about it. first off you must apply for it. secondly it isnt has much as you think for a full year. Also that money is coming form the oil companies here. Also since we do not have a income tax the things we buy are greatly priced higher then down in the lower 48 and even worse since a lot of the products has to be shipped here which the cost of that is passed on to the buyers.

  • Report this Comment On April 05, 2013, at 6:11 PM, MungusHugh wrote:

    Sarah Palin is far more burdensome than any dollar amount so Alaska is no bargain; and Texas is crawling with super sized egos that fit each Texan.

  • Report this Comment On April 05, 2013, at 6:45 PM, spankleelee wrote:

    Texas also charges more for vehicle registration, inspection, and drivers licenses. They seem to up those fees every time the governor balances his budget. Every new highway is a toll road and they are working on making some older ones toll rds as well. It's insane!

  • Report this Comment On April 05, 2013, at 11:42 PM, bugmenot wrote:

    It is scary. Democrats are really more dangerous than Al Qaeda! Maybe the US needs an American Spring to oust the Party of TAXATION AND CORRUPTION.

  • Report this Comment On April 06, 2013, at 12:35 AM, bmlemmon wrote:

    This article is correct, the research is accurate (insofar as it concerns tax rates for the States and the fact that only these 7 are truly free of income taxes).

    However, the author's point could have been phrased a little better: he is not saying "don't assume these are the best," he is saying "Take all factors into consideration before making a big decision such as moving."

    This means not only income taxes, property taxes and sales and use taxes, but also the cost of living and median income range for the area you intend to move to.

    Moving from some place like Arkansas to, say, Alaska, wouldn't necessarily be the best decision for individuals in the lower to median income ranges.

    For higher income individuals however, the benefits of an income-tax-free state far outweigh the cost of living in a taxing one.

    This is a nice resource for those who want help in making an informed decision on a change of location. It could be better if a section discussing states like New Hampshire and Tennessee was added, however (and would also help with all the ignorant comments currently displayed).

  • Report this Comment On April 06, 2013, at 12:59 AM, silverstate702 wrote:

    You must not be looking at accurate information for NV for sales tax. The sales tax in Clark County is 8.1%, up from 7.5% when I moved here in 1997. http://www.tax-rates.org/nevada/clark_county_sales_tax

    6.85% is listed in some counties: http://www.tax-rates.org/nevada/sales-tax-by-county but chances are anyone moving here is going to be living in Reno (still not 6.85%) or Clark County, with the latter being the likeliest. Choosing the lowest listed is ridiculous since those areas are heavily rural. Clark County hosts about 75% of the state's population and would have been a much better assessment of the sales tax for the state.

  • Report this Comment On April 06, 2013, at 3:46 AM, OVarela wrote:

    I've lived in southern Nevada for about 21 years now and we are paying 8.1% sales tax now, not 6.85% as Yahoo is indicating on this report. Does Yahoo know something I don't?

  • Report this Comment On April 06, 2013, at 6:52 AM, Rascul wrote:

    Gowithit... if you ordered food from a restaurant yes you paid taxes, if you bought food from a grocery store there are no taxes. I have lived in Texas 45 yrs of the 50 i've been alive. Also if you did buy food from a grocery store as well as non food items there will be taxes on your receipt for the nonfood items. I hope this clears things up.

  • Report this Comment On April 06, 2013, at 8:33 AM, rodduda wrote:

    You forgot New Hampshire. No income tax or sales tax.

  • Report this Comment On April 06, 2013, at 9:28 AM, BillBeers wrote:

    Your article failed to report the sales tax rates of those states that do have state income taxes or the total tax burden by each of those states. There is no fair comparison as to the tax burden of each state. Your article seems to be an attempt to discourage movement from states with state income taxes to states without them. Just one person's observations

  • Report this Comment On April 06, 2013, at 9:39 AM, hoglegjack wrote:

    just remember if you move to texas, remember why you left your other state..dont come here trying to change crap.. we like it just the way it is.. if you want to support the democrats and pay higher taxes live in the city.. you want to keep more of your money live in the county

  • Report this Comment On April 06, 2013, at 10:26 AM, transplantedtex wrote:

    Texas has so many taxes. We have utility districts, economic development districts, improvement districts, emergency service districts -- all of which add to the basic sales tax rate. I can hardly shop anywhere without paying at least 8.25 percent in sales tax. Of course, we do abate taxes on businesses. Oil and gas companies basically get a free ride and we don't believe in funding education. Yep, it's a real bargain. We have more jobs though, especially if you like serving fries. Every state has its pluses and minuses. I choose Texas because that's where my family is and that's what matters to me.

  • Report this Comment On April 06, 2013, at 10:27 AM, bap3983755 wrote:

    I enjoy living in East Texas, my property taxes are in line with most other states, I don't pay taxes on over the counter drugs, or groceries.

    Originally from Oklahoma, I paid state taxes every year, at least 8.5% sales tax, some places 9% and property tax, on and on and on......

    Can't afford to move back to Okla....

  • Report this Comment On April 06, 2013, at 10:31 AM, Grandpastu wrote:

    I wonder why Tennessee was omitted? We have a sales tax here but no income tax.

  • Report this Comment On April 06, 2013, at 10:31 AM, bap3983755 wrote:

    oh forgot one or two other things..... the car tags are out of sight along with the excise tax on a car.

    average car tag in OKLA is 100.00 my car tag here is 64.00.

    I do think the inspection sticker is a fraud, too many cars on the road that don't need to be.

    In Texas if you can put up with always being asked if you are an american citizen, then you will be fine.....I work in the medical field and we give too much free medical to illegal aliens....They should be taxed.

  • Report this Comment On April 06, 2013, at 10:44 AM, MadMike66 wrote:

    Washington and Nevada may have No Income tax at this time but The tax hungry Democrats in both states have ask for Income tax laws over the last 20 years. In Washington State the Democrats have made up for that lack by raising the sale tax to the point that three of the counties are at or above 9% and the corporate tax is more than 7% the was stated because corporation in Washington state also pay similar taxes in each county above and beyond the state tax on corps. Nevada is similar to Washington State in every respect. I have lived in Washington and still live in Nevada.

  • Report this Comment On April 06, 2013, at 11:41 AM, jjoyce6018 wrote:

    Low tax pro growth States are begging people not to come to their State from Liberal states. They leave places like California and then vote for Democrats and make things just as bad if not worse, like Colorodo.

    Liberals stay where you are !

  • Report this Comment On April 06, 2013, at 12:00 PM, berniew99 wrote:

    There are no taxes in Oregon State or Sales Ive been to Las Vegas NV and have people who live there and say sales taxes are crazy there who ever came up with this needs to do better research

  • Report this Comment On April 06, 2013, at 12:01 PM, NotFondOfLibs wrote:

    It is typical of yahoo journalists (?) to print stories that are not fully researched. After all, the CEO of Yahoo insists that all their employees be Ivy League graduates. That said, it will not be surprising that more and more professional athletes leave teams in states with high state and local taxes and go to NFL, MLB, and NBA teams in these state w/o state income tax. They will if they desire to keep more of their money instead of paying a large part of their income to state and local governments who never saw a tax they didn't like,

  • Report this Comment On April 06, 2013, at 3:19 PM, bogdog44720 wrote:

    Let me clear things up folks. The Motley Fool here is talking about no tax on ANY income. New Hampshire, Tennessee, etc tax Dividend and Capital gains income. That type of income is not considered EARNED income. For example, that type of income would not be considered for the Earned Income Credit by the IRS if you were eligible. Earned income is considered income that you make from working at a job. Investment income is not considered earned income. New Hampshire, Tennessee, etc tax investment income. New Hampshire doesn't have a sales tax, but their property taxes are rather high. No one wants higher taxes. But the plain truth is that the prices for maintaining infrastructure and other services have gone up over the years. You need a way to pay for those services, no one is donating them. Just ask yourselves this: If there were no taxes how we Federal, State and Local governments pay for basic services, law enforcement, military? Mark my words, you all will complain about slow, slower, or lack of service from the U.S. Government after the sequester cuts start taking hold. You cannot get Caviar on a value menu budget.

  • Report this Comment On April 06, 2013, at 6:03 PM, MissEdithKeeler wrote:

    Tennessee has no state income tax on earned income, only dividends. Sales taxes are high.

    Texas has ridiculous property taxes and the sales taxes tend to be pretty high.

    Trust me; I own homes in both states. Tennessee is still the better bargain.

  • Report this Comment On April 06, 2013, at 6:04 PM, Alonzo111 wrote:

    New Hampshire is the best state in which to retire. It has a 5% tax on dividends and interest with a $3,600 (single) exemption which equates to a 2.5% return on $150,000. It has no sales tax. And prices are low because it draws in shoppers from other states like Mass. and Vermont who want to avoid sales taxes. Thus, its businesses thrive. It also runs all the booze stores and makes several hundred million dollars a year - a lot of which comes from shoppers from other states looking for discounted prices and no taxes. No other state comes close.

  • Report this Comment On April 06, 2013, at 7:09 PM, CubFan100 wrote:

    I think a state like Florida, which has no income tax but what seems to be regular hurricanes, should not receive FEMA assistance unless they do more to plan and save for the inevitable.

  • Report this Comment On April 06, 2013, at 11:22 PM, wolflady53 wrote:

    you are wrong that there is only 7 states without in come taxes new hampshire does not have an income tax

  • Report this Comment On April 07, 2013, at 9:29 AM, BillBeers wrote:

    CubFan100, Florida has a surcharge on homeowner's insurance and auto insurance for disaster funds. One would think that you would be more concerned with cleaning up the murder capital of the nation before espousing your progressive socialist ideas on how to fix a problem in other states. By your way of thinking we should withhold all federal funding to Illinois until Chicago can cut their murder rate by 50%

  • Report this Comment On April 07, 2013, at 9:34 AM, BillBeers wrote:

    CubFan100, just an FYI the director of FEMA for the federal government held that position in Florida prior to taking his current position Florida is head and shoulders above Illinois in disaster preparedness as well as many other planning events

  • Report this Comment On April 10, 2013, at 4:08 PM, EathelsBoy wrote:

    Oh yes. Texas is terrible. Nasty old oil sloshing around everywhere, no arugula or patchouli anywhere in sight! DON'T move here!

  • Report this Comment On April 11, 2013, at 11:45 AM, x1134x wrote:

    Wow. People just don't read the comments.

    The tax rates in the article are correct, and the states are also correct. Tennessee and New Hampshire do tax dividend income, so they DO have a state income tax. Duh.

    The "I pay 6.1 percent in clark county" type commenters are forgetting that they're paying COUNTY tax and CITY tax ON TOP of the state tax. Of course if they would READ rather than runt their pie hole they'd know that.

  • Report this Comment On April 12, 2013, at 3:10 PM, prissyw wrote:

    I here North Carolina is looking at dropping their state income tax. Has any heard where this stands?

  • Report this Comment On April 12, 2013, at 5:50 PM, troutfishin wrote:

    Hmm, the WY and MT concept sounds great. Too bad for me, though, as I enjoy the taste and the hunt for MN Walleye. Informative read, nonetheless, with some informative comments. For some of the rabble rousers, the title of the article states: 7 states with NO income tax. That means NO TAX on earned AND unearned income. As to the AK Permanent Fund, if I understand this correctly, the state of AK pays its residents just to live there? Damn, wish MN would pay me to live here, it can get just as cold as AK here sometimes. Just sayin'...

  • Report this Comment On April 13, 2013, at 6:00 AM, mikiehorn wrote:

    Moved from California to avoid 10.3% income tax on my (Army) military pension. In November 2012 the citizens of California voted to increase that tax to 13.3% retroactive to January 2012. In January of 2013 - I voted with my feet to join my children in New Hampshire. Shortly thereafter I gave the State of New Hampshire an overseas APO, AP (working for a defense contractor) and moved my wife and all my personal property to South Korea-avoiding local personal property tax and the first $95,100 of income eligible for federal income tax if (I work for 330 continuous days and don't get nuked by the North Koreans).

    Still checking with my accountant how the state will treat me as an ex-patriot living and working overseas - as well as my wife who may or may not work over here ... as well as the dreaded alternate minimum tax ...

    New Hampshire has a tax on dividends and interest - those over a certain age can exempt up to (I believe) $4,800 if filing jointly.

    The article is poorly framed - misleading in so many ways. Kiplinger and even the lefties at AARP do a better job in this regard. (jmho)

  • Report this Comment On April 15, 2013, at 9:39 PM, pisces2220 wrote:

    I have lived in the state of WA since 1978. They have "no state income tax", so to speak. They do tax entrepreneurs, i,e,. anyone who serves the populace. I am a psychotherapist in private practice. I pay the same amount of quarterly tax (roughly 4k) to the federal government as I do the state. This state may be proclaimed a "no income tax " state but it is not. They tax me and every other person who wishes to live here and provide a service or a product to others. Don't come here thinking it's cheap. The costs are high and the states taxes are high if you wish for your work to express yourself in a personal manner. Plus it rains a lot. The state just wants your money here, precisely as the feds do under obama.

  • Report this Comment On April 16, 2013, at 11:02 AM, TugJimary wrote:

    No state income tax in Michigan on pensions if you were born before 1946.

  • Report this Comment On May 04, 2013, at 2:26 PM, savasommer wrote:

    Just noticed this article. Hmmm. What is the point of this article??

    Florida has the worst of - it's a long list -

    1. Public school systems

    2. Social network systems

    3. Medicare and Medicaid systems

    4. Unemployment

    5. Foreclosed etc. housing markets

    See what no income taxes gets ya.

  • Report this Comment On May 10, 2013, at 8:47 PM, BaytownOne wrote:

    Dear Gowithit and general Motley Fools,

    Texas has been reported correctly by the author and the sales tax is charged for everything except medications, vitamins, and groceries. Apparently, groceries are food that you can make other food with. Hot food is taxed as well as sodas, candy and alcohol. Some establishments choose to include the sales tax in the price for everyone's convenience (the taco trucks come to mind,) but prepared food is the only "food" taxed.

    Sincerely,

    A Checker at a Grocery Store in Texas.

  • Report this Comment On August 18, 2013, at 2:22 PM, Manupollo wrote:

    I live in Italy, and Y can tall you that sales taxes and income taxes in Italy are a higher thanthe US. We pay a minimum of 27% income tax, plus local taxes at least 4 to 8%, sales taxes are 21% on most items, except groceries where we pay 11%

    Price of gas is 4 times more expensive than the US, and general government service is very poor. I thisk I should relocate in the US, any State would be cheaper then Italy.

  • Report this Comment On January 24, 2014, at 4:56 PM, billdpar wrote:

    You missed a state - New Hampshire has no income tax nor a sales tax. There is a tax, however, on interest and dividends - typically, the ultra backward stance of the legislature of New Hampshire - with little state support for local projects.It sounds "wonderful" but try living here!!!!

  • Report this Comment On April 23, 2014, at 8:15 AM, shipdog7 wrote:

    Florida may be just the fourth most populous state in the U.S., but it contains more of nation's 100 most dangerous cities -- a total of 11 -- than any other state, including California (10), Texas (five), and New York (four).

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