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These States Have No Income Tax

There are seven U.S. states with no income tax, while another two states have no income tax on wages but do tax interest and dividends -- an important consideration for retirees. The grass isn't always greener on the other side of the state line, though. These states still need money for government services, and they raise it through other means, namely sales taxes, property taxes, and other fees. Depending on your situation and your willingness to move, with some planning you could start paying less in taxes and keeping more of your income. Read on to find out more.

States with no income tax:

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

States with nearly no income tax:

  1. Tennessee
  2. New Hampshire

Source: Wikimedia Commons. States with no income tax are in red; those with taxes on dividends and interest income are in yellow.

Let's examine each of the states with no income tax using each state's data on tax revenue as well as the Tax Foundation's most recent data, which is for 2011. The Tax Foundation has been collecting data on taxes since 1937, and its data takes into consideration a per-capita average of both state and local taxes.

1. Alaska
If saving money is your only concern, Alaska is the best place for you. Of course, with its distance from the rest of the country and harsh winters, America's northernmost state is not for everyone. According to the Tax Foundation, the average state and local tax paid per capita was $3,319 -- the 18th-lowest amount out of all 50 states. Senior citizens get an added incentive to live in Alaska, as the state exempts them from the first $150,00 of assessed value for property taxes.

With no state sales tax and relatively low property taxes, Alaska funds itself through royalties on oil and gas production. Besides low taxes, residents of Alaska get a direct benefit from these royalties through Alaska's Permanent Fund, which pays full-year residents of Alaska a yearly dividend based on the earnings of the royalties.

The fund has paid out an average of $1,100 per year the past five years! Though the level has been decreasing as oil and gas prices and Alaskan production have dropped, that's still a decent chunk of change for simply living in the state. If you subtract the average dividend from the average per-capita state and local taxes paid, you get $2,200. That would be the lowest net per-capita state and local tax bill by $400.

2. Florida
Florida's warm weather has long been a draw for tourists from around the world and retirees who are fed up with winter. As an added draw for residents, Florida has not had a state income tax since it was repealed in 1855. The state mainly funds itself with a 6% sales tax and property taxes. In 2011, the average per-capita state and local tax paid in Florida was $3,699, according to the Tax Foundation -- the 24th-highest out of all 50 states.

3. Nevada
Nevada's gambling and tourism industry has long been the state's main draw, though its non-gambling tourism has grown through the years through shows, conventions, retail, nightclubs, and electronic dance music. The lack of individual and corporate income taxes is a big draw for businesses and residents alike. However, Nevada has a modified business tax that taxes businesses 1.17% (2% for financial institutions) on the wages paid in the state after deducting health care expenses.

Like other tourist-friendly states, Nevada funds itself through sales and use taxes, which start at 6.85% and make up 72% of the state's revenue. In 2011, the average per-capita state and local tax paid was $3,221, according to the Tax Foundation -- the 15th-lowest out of all 50 states.

4. South Dakota
South Dakota, my favorite state in the Midwest to drive through, has the fifth-smallest output in the U.S., and its economy is mainly powered by farming and tourism. Besides Wall Drug, the best road-trip stop in the U.S., the state is known for numerous national parks, the historic city of Deadwood, and the Sturgis Motorcycle Rally.

With no income tax on individuals or corporations, the state funds itself through a 4% sales tax and various use taxes. In 2013, the sales and use tax made up 71% of the state's revenue. Perhaps unsurprisingly, given the state holds the largest motorcycle rally in the U.S., motor fuel taxes are the second-largest contributor to the state's coffers at 9%. In 2011, the average per-capita state and local tax paid was $3,052, according to the Tax Foundation -- the seventh-lowest out of all 50 states.

5. Texas
Texas funds itself through a 6.25% sales tax, taxes on motor vehicle sales and fuel, and taxes and royalties on oil and natural-gas production. Texas has no corporate income tax and is greatly helped by the oil and gas throughout the state and the Gulf of Mexico. In 2011, the average per-capita state and local tax paid was $3,088, according to the Tax Foundation -- the eighth-lowest out of all 50 states.

6. Washington
Washington is a great example of the need to check all the data. The state primarily funds itself through a 6.5% sales tax that makes up more than 60% of its revenue. Localities add to this, so the sales tax can be as high as 9.5% in some areas. While the state has no corporate income tax, it does have a gross receipts tax, which charges businesses roughly 1% of revenue. This may not sound like much, but if a business is losing money, it still owes the government money at the end of the year, which is not the case with a corporate income tax. Such high sales taxes and property taxes add up. In 2011, the average per-capita state and local tax paid was $4,366, according to the Tax Foundation -- the 12th-highest in the U.S.

7. Wyoming
Wyoming funds itself mainly through its natural-resources taxes, as well as property taxes. The state has a property tax rate of 9.5%, though its sales tax is only 4%. In 2011 the average per-capita state and local tax paid was $3,500, according to the Tax Foundation -- the 22nd-lowest in the U.S.

States with nearly no income tax

1. Tennessee
Tennessee has no income tax but does have a "hall tax" -- that is, a 6% tax on interest and dividends, which is specifically allowed by the state constitution. Tennessee also has a 7% sales tax. Income taxes are a contentious issue in Tennessee. The state constitution gives the government the right to tax property as well as income from stocks and bonds, but it does not mention personal income. Every so often lawmakers try to institute an income tax, as the constitution does not specifically bar this. This November, Tennesseans will vote on an amendment to the state constitution to ban any future taxes on payroll or personal income.

While Tennessee has no income tax on wages, if you are a retiree living off of dividends and interest income, you should think twice before moving to Tennessee for the tax benefits. In 2011, the average per-capita state and local tax paid was $2,777, according to the Tax Foundation -- the second-lowest in the U.S.

2. New Hampshire
New Hampshire, like Tennessee, has no income tax on earned income but has a 5% tax on interest and dividends. The state has no sales tax but has an 8.5% corporate tax rate, as well as high property-tax rates, which add up. In 2011, the average per-capita state and local tax paid was $3,769, according to the Tax Foundation -- the 22nd-highest in the U.S.

Bottom line
When it comes to a state's tax rates, there's more to consider than income tax, but it doesn't hurt to start there, especially if you're living off interest and dividends.

Take advantage of this little-known tax "loophole"
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Read/Post Comments (44) | Recommend This Article (62)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 19, 2014, at 1:14 PM, Jurobi wrote:

    Not very accurate on overall taxes for Texas. City and county taxes add up to another 2.25% in sales tax (not sure if any have less than the max rate allowed). In addition, property taxes fund school, city, county and some state organizations and activities (water districts, etc.). Property taxes can vary a bit depending on school district and whether or not you are within a city's limits. I live outside the closest city, so I pay a property tax of $1.66/$100.00 valuation. If I moved 3 miles in any direction, my rate would go up to $2.25/$100.00 valuation. And for oil/gas properties, the counties apply a tax similar to a property tax based on the value of the oil/gas extracted the previous year, in addition to the state severance tax. So you can't just think about state tax , but must consider all local taxes.

  • Report this Comment On April 19, 2014, at 1:53 PM, hillbillydave wrote:

    In Washington, Ya they don't have State Income tax. but they have an enormous tax on all kinds of products, gas, cigarets, Car Taxes, property tax, electricity, Natural gas etc. It is all over the top, higher than any other state. The State will get its money one way or the other.

  • Report this Comment On April 19, 2014, at 3:17 PM, Fight4Justice wrote:

    @Jurobi: The data presented for Texas reflects an average on all taxes paid which includes the local property tax differences. As I live in Dallas the property taxes are higher than living in Waco mainly because we fund Parkland, one of the largest public hospitals in the nation.

  • Report this Comment On April 19, 2014, at 3:22 PM, Fight4Justice wrote:

    I used to think that Texas property taxes were too high until I saw what states mainly in the northeast and California are paying which is much higher than what I pay in Dallas. Considering the nation as a whole, it would seem that Texas taxes remain reasonable for now.

  • Report this Comment On April 19, 2014, at 3:36 PM, Baroc86 wrote:

    @Jurobi

    It is very accurate regarding Texas. The state sales tax is correct, but as with MOST states, counties and local areas there are additional considerations for sales tax.

    So certainly this article can go into detail and discuss all 3007 counties but that wouldn't make sense.

    Thank you for your insight but I would hope the average reader would know that this would vary depending on which municipality in the area you lived in.

    Considering the largest chunk of the tax is charged by the state it gives a very accurate representation to begin comparisons.

    FInally, since it offers the "average per-capita" tax ranking it gives an ever more fair assessment when comparing states. Although one would argue it should be providing median and not mean, in which case that number is probably a bit lower.

  • Report this Comment On April 19, 2014, at 7:05 PM, JohanStrauss wrote:

    Don't come to Texas. It's hot, triple-digit hot. You will die. We have snakes, too, and they like to come inside on those rare days it rains. Plus, every retard transplant from every other sh*thole state is moving here and mucking things up. Stay where you are, especially if you're in california.

  • Report this Comment On April 19, 2014, at 7:26 PM, southernshark wrote:

    There are other costs of living in Alaska. I lived in a remote area there for 2 years and a gallon of milk was 20 dollars, and was often at the edge end of being expired. Of course stuff is cheaper further south but it is still higher than any other state. It's really not a great place for retirees unless they intend to hunt their own meat.

  • Report this Comment On April 19, 2014, at 7:57 PM, bdijgf wrote:

    The two largest, most independent, wealthy and progressive states that have no income tax are also the two that have requested secession from the US? Texas and Alaska. Reality check: Anti Socialism ideology equals prosperity? Appears obvious the US is headed for dissolution unless sanity is restored!

  • Report this Comment On April 19, 2014, at 8:39 PM, marcjones281 wrote:

    Would be curious to hear the experience of someone who lived in southern Alaska and if they think it'd be doable for retirees.

  • Report this Comment On April 19, 2014, at 9:01 PM, marcjones281 wrote:

    Would be curious to hear the experience of someone who lived in southern Alaska and if they think it'd be doable for retirees.

  • Report this Comment On April 19, 2014, at 9:28 PM, MissEdithKeeler wrote:

    According to the information from the state of Tennessee, a person over the age of 65 is exempt from the tax if their income is less than $33k ($59K for joint filers). That's income derived from all sources.

    TN is a very economical place to live, and even with the tax on interest and dividends, the low property taxes I think would still make it a bargain compared to a lot of other states.

  • Report this Comment On April 19, 2014, at 9:30 PM, emailnodata wrote:

    Not surprising that most of the no-income tax states have rotten education systems.

    Balance is the key, but no one believes in that nowadays. Everything is to the extreme.

  • Report this Comment On April 19, 2014, at 9:32 PM, sandman441 wrote:

    I would look around at property expenses how much you get a month against how much groceries cost stuff like that, because stuff costs a little more up here. It's doable but it depends on your income. Don't let the attraction of "free" money make your decision for you.

  • Report this Comment On April 19, 2014, at 9:43 PM, peterwolf wrote:

    And this is exactly why I and tens of thousands before me are fleeing California.

  • Report this Comment On April 19, 2014, at 9:44 PM, peterwolf wrote:

    emailnodata, I can see why you chose this nom de plume: You have no data. I live in California, where we are taxed to death, and our education system stinks. And everyone knows it.

  • Report this Comment On April 19, 2014, at 9:51 PM, bigfoot wrote:

    looks like I made a good move leaving Washington for Calif. It wnt be long before the liberals from the coast there have filled the state up with non-producing bums and then we can just call it Little Calif. one. And Oregon little Calif. two.

  • Report this Comment On April 19, 2014, at 10:20 PM, RalphJKramden wrote:

    I don't know about the rest of the 7 on the list, but Texas is a free-loader state, i.e. it takes more from the Fed, way more, than it pays into the treasury, So, move there if you are OK with the rest of us subsidizing that welfare, reactionary state that pretends to be sooo self-sufficient and independent. Impostors and poseurs is what they are.

  • Report this Comment On April 19, 2014, at 10:55 PM, WalkingMan wrote:

    What percentage of the population has the fewest spaces at Uncle Sugar's trough? The most spaces? This includes 99% of 1%'ers (the most spaces at the trough) as well as federal retirements (pensions such as military retirements, federal employees, et al).

    Many look at "federal money" as not costing anything. On one hand, this is somewhat true. On the other, no way.

  • Report this Comment On April 19, 2014, at 11:06 PM, WalkingMan wrote:

    A 12-pack of Newcastle in a small city in CA is $11.99 plus CRV plus sales tax. CRV is $0.60 and sales tax is $0.72. Not bad. Don't smoke so could care less about cost of cigs. Gas is $4.03!!! About the lowest in S. CA.

    Nice weather. 72 at the moment (8 PM). High of about 85 but will hit 100+ in June/July until October. Always sunny (about 330 days/year) and then partly sunny about 20 days/year. Rains maybe twice.

    Bottled spring water is $3.99 for a 32-pack plus CRV of $1.60.

    Plenty of cute females.

    So, if you're into low cost imported cold beer, nice weather, high cost of gas, and spring water, and cute females (better make >$85,000 min. or forget cute), CA is the place.

  • Report this Comment On April 19, 2014, at 11:56 PM, pitbulldog wrote:

    I would rather have access to facilities,medical and recreational ,so taxes are what they are.I get all of the religious folks at my door for my participation but I don't get blacklisted if I don't partake.I don't sit with a gun ready to shoot my neighbor if he does something I don't like. To be a Californian it helps to get used to adversity because We have it all. Others may not like our politics or the clinics,but our people chose their own future.If choice were not possible,how many more would be on public assistance.If you live in Texas what do they call the levy on your paycheck evary payday. In California we at least can deduct for some items,how about Texas.

  • Report this Comment On April 20, 2014, at 1:35 AM, NoWindows8LockIn wrote:

    The part about Texas is a crock.

    "Texas funds itself through a 6.25% sales tax, taxes on motor vehicle sales and fuel, and taxes and royalties on oil and natural-gas production. Texas has no corporate income tax and is greatly helped by the oil and gas throughout the state and the Gulf of Mexico. In 2011, the average per-capita state and local tax paid was $3,088, according to the Tax Foundation -- the eighth-lowest out of all 50 states."

    1. Yea, sure, but when you buy anything from local supermarket, you WILL be paying 8.25% in most major cities...so.

    2. The "No income tax" is a trick that Texas uses to lure unsuspecting "dumb" entrepreneurs here. When you start business, you WILL get something in the male saying "Pay us or else." When you call Secretary of State saying, "Hey!! I thought there was no income tax!!!!!" they will say, "There is not. We call it a 'Right to Do Business Franchise Tax'" Pay up or else.

  • Report this Comment On April 20, 2014, at 2:20 AM, Asmodeus1971 wrote:

    @RalphJKramden, you couldn't be more wrong. Texas is actually one of the few if not only conservative states that pays more in taxes than the state receives in federal funding.

    http://www.motherjones.com/politics/2011/11/states-federal-t...

  • Report this Comment On April 20, 2014, at 8:59 AM, malibusunsetter wrote:

    Wyoming does not have a 9.5% real estate tax - Wyoming is a fractional assessment state meaning only 9.5% of the assessed value is used for taxation purposes with a mill rate of .8%.

    Anyone who makes decisions about money, be it stocks, retirement, taxation, etc using Motley Fool articles, is foolish.

  • Report this Comment On April 20, 2014, at 9:12 AM, ugo wrote:

    Very misleading. Some states make it up with increased fees, sales taxes, federal funds, etc. It is interesting that many of these states are ones near the top of the list that take more than they put into federal funds. Alaska is always near the top of that list, but yet levies a huge windfall tax on oil companies that is redistributed to its citizens, and the oil companies pass the cost of on to consumers nationwide.

  • Report this Comment On April 20, 2014, at 9:15 AM, ugo wrote:

    Some states, such as Il., do not tax income from pensions or social security.

  • Report this Comment On April 20, 2014, at 10:26 AM, halljsf wrote:

    As long time Texas resident, I can tell you that while Texas may have low taxes, it more importantly has very marginal, if not poor, public schools, highway system, public transportation, and other public support programs. Texas ranks last in its support of individuals with cognitive disabilities through MHMR. Texas is a good example of how the pendulum of tax restraint versus government responsibility has swung outrageously wrong.

  • Report this Comment On April 20, 2014, at 10:34 AM, VegasSmitty wrote:

    This is the reason I left NY and came to NV. You have to be crazy to pay those kids of taxes.

  • Report this Comment On April 20, 2014, at 12:30 PM, kingman48 wrote:

    You neglected to mention NY . If you have a civil service pension, or any gov't pension , there is no state income tax plus if you have a standard pension the first 20k is not taxed. Ny also does not tax Social Security benefits. Of course you get killed on your property taxes in most places.

  • Report this Comment On April 20, 2014, at 12:36 PM, wareagle1971 wrote:

    Not for long

  • Report this Comment On April 20, 2014, at 12:46 PM, wareagle1971 wrote:

    Ohhhh, it won't be for long, BUT if Florida can snag corporations from California who steals trillions from corporations we can remain tax free.

  • Report this Comment On April 20, 2014, at 2:03 PM, Max1550 wrote:

    South Dakota may have no state income tax, but it relies heavily on federal funds. More than 40% of the state's revenue comes from federal contribution. Now, granted, this isn't wasted; a lot of it goes into relief for ranchers during devastating storms or helping support Ellsworth. But it would be a mistake to think SD is a frugal state.

  • Report this Comment On April 20, 2014, at 3:35 PM, bevcash wrote:

    True, Alaska has no income tax, and the PFD is a nice perk. But it's expensive to live here, even in Southcentral (Anchorage and area). Real estate is very high, food is high, and to add to it, the economic future of the state is uncertain. Oil accounts for 30% of the Alaska economy, and production is declining, with no definite solution in hand currently. Budget deficits are a concern now, and it's possible that state reserve funds will become depleted in 5-10 years if solutions aren't found. I'll probably leave in the next few years for these reasons.

  • Report this Comment On April 20, 2014, at 4:20 PM, karrie wrote:

    YES!!! GOD Bless Texas!!!

  • Report this Comment On April 20, 2014, at 5:13 PM, bpster wrote:

    I'm going to be moving back to Texas and giving myself a 20% raise. Screw California real estate is tanked, you have Mexicans for doctors now that have lost their license to practice in Mexico but hey! they can PRACTICE here. Screw the dentist you can't find one that speaks English period. The schools are in the tank best be ready to drive and pick up your kid. No sidewalks but so many mexicans we eliminated the bus service. If your white forget all those places you once got served. You won't now. Can't sit in the back yard due to the flies, won't open a window due to gang members and home invasion. Don't roll down your window you might get your head blown off. I pack and carry I miss Texas. 30 of my family members all great contributors to society are out of this welfare state...

  • Report this Comment On April 20, 2014, at 7:23 PM, jknbt wrote:

    ditto to the comment above on texas taxes...I live in an unincorporated area of harris county, but I have to pay a mud tax...municipal utility district tax...which is at least as much as any city tax...my taxes add up to a whopping 3.3% with the local hoa tax added in...

    Texas was in the lowest 25% of states when the dems had the statehouse in the 90's...the republicans took over, and now if you add it all up, texas is somewhere in the middle of all the states...

    yes, it depends on how big your house is & how nice, but they charge for everything down here...people who live in Louisiana next door & move in say the net damages are about the same...

    NO FREE RIDE IN TEXAS. GET REAL.

  • Report this Comment On April 20, 2014, at 7:28 PM, AxeTax wrote:

    Californians might want to consider Connecticut as a new home. We have the following to offer.:

    Connecticut's Tax Freedom Day - the day on which the state's citizens stop working for the government and start working for themselves - comes on May 13, 2013, the latest in the nation according to a new report by the Tax Foundation.

    Barron's rated Connecticut's debt situation as the worst in the country in 2012

    TopRetirements.com ranked Connecticut as the 2012 worst state for retirement

    The Institute for Truth in Accounting ranked Connecticut's financial status as the worst in the nation with a debt burden of $49,000 per taxpayer.

    Connecticut's credit quality was ranked 50th in the nation by Conning Inc's State of the States Municipal Credit Research Report in 2012

    Connecticut's Achievement Gap is the worst in the nation according to the Connecticut Council for Education Reform

    The Fiscal Policy Report Card on America's Governors by the Cato Institute gave Gov. Dan Malloy an "F".

    Add to that the outrageous "toughest in the nation" gun laws recently inflicted on the citizenry

    and Californinians should feel right at home. And there's plenty of space, locals are leaving in droves.

  • Report this Comment On April 20, 2014, at 8:15 PM, gobbler123 wrote:

    No free ride in Texas, but the taxes are still much lower than any other big state except maybe Florida. California schools are ranked lower than Texas despite the 10% state income tax along with their high sales taxes and ridiculous cost of living. That state is like Brazil. You have the rich, the government class, and everyone else is poor. Texas has plenty of problems like all other states, but at least people can afford to live middle class on a $50K salary.

  • Report this Comment On April 20, 2014, at 11:21 PM, marka3 wrote:

    Texas sales tax is 8.75% in most counties. Property taxes are 2.5% of the assessed value. They have a .5%-1.0% business "margins tax" on corporations and partnerships. They have a business personal property tax at 2.5%. Finally, they are building more and more toll roads, which more than offsets the lower cost of gasoline. Oh, yeah, they have no personal income tax.

  • Report this Comment On April 21, 2014, at 2:20 AM, mbaker73 wrote:

    @pitbulldog

    There is no income tax in Texas, so why would anyone need to deduct anything?

    Also, for those that want to say Texas is a freeloading state, there is a reason many of those receiving unemployment benefits and SS moved to Texas and will continue to. The overall cost of living is among the 3 or 4 lowest in the country, even when you include the taxes. Texas will trump every other state in population growth and that expansion will lead to Texas passing up Cali to be the top in GDP and two metro areas will be the largest in population by 2030 with more than 11 million in Houston and DFW areas.

    Additionally, You got to downtown Dallas or Fort Worth, and you'll see two of the cleanest cities in the country. I don't know about the others as I have not been to them.

    Sure, there are negatives. The two largest metro areas are sprawling. You may have to commute to work a little longer, but at least you can find work as more jobs are being created in Texas than in any other state. You many not like the heat, but it's not "triple" digit every single year. In fact, you'll find the same cycle that occurs in other parts of the country.

    As far as recreation in Texas, you have all of the choices plus some.

    Football

    Baseball

    Hockey

    Basketball

    Soccer

    It's all there as a spectator.

    We have great fishing, super clean state parks that make the federally ran parks look like landfills and a whole lot of open wilderness. Yes, there are also snakes and large predatory mammals in the wilderness so you have to be careful. Some of them snakes are huge, just don't mess with them.

    What else is there in Texas? Night life? Check. Opera? Check. Ballet? Check. Art? Check. Amusement Parks? Check.

    It's what we don't have in Texas that is what makes it better for people. For example, we don't have one bedroom apartments renting for $3000 or more. We don't have to wait until someone has already broken into your home before you can protect your home and your family. We don't have problems with infrastructure like so many of those in the blue states suggest. There isn't a property tax assessed on the value of your vehicle. The fee is the same for all cars except for antiques and those that want a vanity license plate.

    We do have public libraries and public transportation, and I'm betting a larger percentage of people in Texas use them than in a place like NYC. You don't wait for 3 hours at the DMV. You're in an out in under five minutes almost every time. Yeah, you don't have to take the day off to pay a tax and lose a day's pay. How dare we, huh?

    Let me see, what else does Texas have? We have lower gasoline prices than Cali, NY, and the deep blue states, because we produce more than we consume. What a novel idea! We even have mountains in Texas, and that isn't just west Texas. North central Texas has mountains too. They're very old mountains, but they're mountains.

    We have great produce, particularly fruit. I happen to live in the Peach Capital, and yes, there are a lot of peaches sold throughout the USA that come from right here.

    Contrary to popular belief, we don't hate women in Texas. We don't hate minorities(in fact most minorities in Texas despise what the progressives are doing).

    Every state, not just Texas, has a rich heritage for those willing to learn about it. Some may not like Texas, and so I say, the feeling is mutual about Massachusetts, New York, California. Hey, that's why states have rights guaranteed by the Constitution. If you don't like Texas, you're not required to buy a ticket to come here or pay a fine.

    You don't have to like Texas if you don't want to. It's probably best if you stay out of Texas if you hate it instead of trying to shape into your vision of what you believe isn't "backwards". You might want to realize that paying $3000 a month for rent doesn't mean you're living a higher standard. It means your dollar is worth less than it is in Texas, and I mean a lot less.

    That's really all that needs to be said.

  • Report this Comment On April 21, 2014, at 2:39 AM, mbaker73 wrote:

    marka3,

    There are some toll roads in Texas, and they are despised by most. They aren't used that much. People mostly avoid them. The three toll roads in Texas include the 121 tollway, Dallas North Tollway, and 161 Turnpike. These are the least driven highways in the city.

    We have I30, I20, I820, 114, 183, 75, 26, part of 121, isn't a tollway, 171, 287, 156, 377, 360, 67, I35e, I35w, I45, 180, 80 etc. They're not tollways. The tollways aren't pulling the load like they hoped they would because people mostly avoid them. Any where you can get on 121 you can also get by taking the portion of 121 that isn't a tollway to 635 across to I35e or 75.

    Sure, there are some people that can't avoid them like those who work in Addison and live in Dallas or the most northern parts of Irving. You can get to work without using the toll roads even then if you use I35e or 75, but you might have to drive an extra 10 minutes a day.

    I've driven on all of the toll roads in DFW, but only when it's a matter of time vs. money and these tolls are deductible for business owners on federal tax returns. Even then, along most of the 121 toll road, you can drive on the older part of the highway with speed limits of 60 and stay off of it for the 20 miles. Might take an extra 2 or 3 minutes, but you would only pay fifty cents a day in tolls by doing it that way.

  • Report this Comment On April 21, 2014, at 7:11 AM, EastCoastWiz wrote:

    While it is true that Tennessee does not have a state income tax, there are other factors that negate that nice little perk. For example, in Nashville the food tax is over 9% so be prepared for sticker shock when you shop. Also, you're going to have to deal with almost daily tornado watches during tornado season:

    Watch this video to get an idea of what you would be in for:

    http://www.youtube.com/watch?v=BqEHPY2nVjg

    Money isn't everything. There's a lot to be said for peace of mind.

  • Report this Comment On April 21, 2014, at 7:23 AM, bduce57 wrote:

    I Live in NH and over the past few years, property taxes have soared because there are very few large employers and no tax base except homeowners. Pensions and entitlements are really costing the towns and state money and the home owner is the the only pot to pull it from. Most of southern NH work in MA because of the present regime in power and their inability to lure new businesses to NH. It's a very expensive state to live in and, with the influx of MA residences trying escape MA high cost of living and poor quality of life in the cities, it is only getting worse. 13% increase in just the last 2 years and this year if looking to levy an higher tax. Can't sell your home because no one will but it with such a large tax burden.

  • Report this Comment On April 21, 2014, at 11:16 AM, marka3 wrote:

    mbaker73,

    You obviously don't have to use the tollways in DFW, based on your comments. Let's see, $520 million dollars in revenue last year and over 640 miles of toll ways in DFW. Yeah, no one uses the tollways and only a few exist!! What a crock!! Even I635 is being rebuilt as a dual use tollway/freeway from S75 to I35E. The rates increase every two years automatically. Correction: Sales tax in Texas is about 8.25%, not 8.75%, in most jurisdictions. Please get your facts straight, mbaker73. Texas is a moderately high tax and fee state, especially for homeowners and business owners.

  • Report this Comment On April 21, 2014, at 3:58 PM, alaskarabbit wrote:

    I live in AK, people should not get excited over the annual oil dividend, because the overall cost of living here is the second highest in the nation, behind Hawaii. And employment here is very limited. Either you are a business owner, (typically tourism) work on the oil fields or are barely making minimum wage. It's really a great stimulus package every year since so many people use their oil money for new phones, sometimes a down payment on car, etc, but a lot of people have to use it to keep from having their utilities cut off or to catch up on the mortgage.

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Dan Dzombak
TMFDanDzombak

Dan Dzombak has written for The Motley Fool since 2009. He covers value investing, investing process, and success among other things. You can follow him on Twitter by clicking the button below or head over to his blog at http://www.DanDzombak.com

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