Hate Paying Taxes? These 7 States Have No Income Tax

Why lose more money to taxes than necessary?

Life has a way of being expensive. From car payments to mortgage costs to having to put food on the table, many people struggle to stretch their paychecks month after month. And compounding the issue is the matter of taxes -- having to fork over a chunk of your earnings to the federal government, and, in many cases, your home state.

Some states, however, don't impose an income tax. And so if you'd rather keep more money for yourself, you might consider making one of them your home.

The seven states with no income tax

You won't pay any state income tax if you move to the following states:

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

It's also worth noting that Tennessee and New Hampshire don't impose a state income tax on wages. However, they do tax other types of income, such as the interest you earn in your savings account. They also tax dividend income you earn in a brokerage account.

Should you move to a state with no income tax?

It depends. Obviously, not paying state income taxes could be a big source of savings. But you might spend more money in other ways.

Alaska, for example, is a very expensive state to live in, despite being without state taxes. Because a lot of goods have to be brought over, you might pay more for groceries and household essentials. And also, because things are pretty spread out in Alaska, you might spend more on transportation. Housing there also isn't cheap.

Parts of Washington, meanwhile, can be very expensive -- especially around Seattle. Similarly, while there are many low-cost cities you can move to in Texas, if you're looking at a major city, like Austin, you'll need to prepare to spend a small fortune on housing.

Then there are other factors to consider, like school systems (if you have kids), climate, and access to amenities. Alaska is beautiful. But it's also really cold most of the year.

Meanwhile, in many parts of Wyoming and South Dakota, you'll enjoy nice, open spaces. But you might have to travel far to access stores or restaurants. And while you might appreciate the warmth of Florida in January, you might also find yourself cursing your decision to move there once the summer heat makes stepping outside feel like walking into a furnace.

Also, think about where your friends and family live. If your entire support network is concentrated in the Northeast, then abandoning it to move to Nevada may be a more difficult thing than you'd expect.

Finally, think about where jobs are available in your field. If you're a teacher or nurse, you might be able to get a job anywhere. But if you work in tech, there may be limited opportunities in Wyoming unless you happen to have a job that lets you work remotely on a full-time basis.

All told, it does pay to research the above states and see if they're a good fit for you. But don't move to one solely because there's no income tax.