US Tax-Free States – List of all 9 Territories and details about them!

Living in a place with no income tax is one way to reduce tax bills. Nine states will have no income tax by 2027, up from the current seven. Washington and New Hampshire are phasing out their taxes.

US Tax-Free States

To find out their tax obligations, individuals and businesses must file annual state income tax returns; however, some states do not charge taxes.

Governments raise money for infrastructure, vital services like social security, and other projects. One way to reduce your overall tax burden is to move to a state where income taxes are nonexistent.

Full List of US States with no taxes 

Nine states in the US do not presently impose a state income tax. These states consist of:

Alaska

In 1980, Alaska, the biggest state in the union and regarded as one of the most tax-friendly, got rid of its income tax. Alaska has the lowest overall taxation rate of all 50 states at 5.06% of personal income. 

The Alaska Enduring Fund Corp. provides annual payments to residents, including a $1,312 dividend payment. 

Florida

Florida has a substantial sales and eradication tax rate but a low overall tax burden of only 6.33%. It is a popular state for snowbirds due to its warm temperatures and large retiree population. 

In 2020, it was the 31st cheapest state, despite rising housing costs. Florida’s infrastructure and equitable distribution of state funding for schools receive a C-grade. The average annual cost of healthcare has risen from $8,076 to $9,865.

Nevada

US Tax-Free States

Nevada has the second-highest total tax burden in the US, at 7.69% of personal income. The majority of Nevada’s revenue comes from revenues and excise taxation. Nevada has relatively high local, regional, and state sales taxes.

It ranks 38th on the list of the “Top States to Live In” by U.S. News & World Report, but it has high housing and living expenses despite being ranked 19 out of 50. Nevada devoted $10,450 on schooling in 2021, which is among the lowest figures in the nation.

New Hampshire

New Hampshire ranks third in the country with an overall tax bill of 6.14%. Dividends and interest are subject to state taxation, but earned income is not. The state collects excise taxes, which include alcohol taxes, but does not have a state sales tax. 

According to the U.S. News & World Report, New Hampshire ranks sixth. Until 2027, New Hampshire will continue to tax interest and dividends from investments. This state also has some of the highest property taxes and cost of living in the nation. 

South Dakota

As a state without income tax, South Dakota raises money through a variety of levies, such as taxes on alcohol and cigarettes. Residents are exempt from income tax due to the state’s high sales tax rates and the presence of the credit card industry. 

South Dakotans devote only 6.69% of their earnings to taxes, ranked 8th in total tax expense. The state is ranked 12th on U.S. News & World Report’s “Best States” lists and 8th in affordability. 

Tennessee

Tennessee has the fourth-lowest total tax burden in the country (6.22%) because of an annual 1% decrease in untainted income taxes. The affordability of the state is ranked 14th. With 276 dams with a high potential for hazards and 4.4% of bridges having structural defects, it does not rank highly in terms of spending on healthcare and education. 

In 2021, Tennessee began to phase out its tax on dividends and interest from investments. Generally speaking, this state has a higher-than-average sales tax.

Texas

Texas has some of the lowest rates of both local and state taxes in the country. Texas depends on earnings as well as revenue taxes to fund its infrastructure and services even though it prohibits personal income taxes. 

The total tax burden is equivalent to 8.19% of personal income, with certain jurisdictions having sales taxes as high as 8.25%. In spite of this, Texas is ranked 35th on the list of Best States to Live In and 22nd in the nation for affordability.

Washington

Washington has relatively average revenue and local taxes, but it is among the least affordable states. Despite having a youthful population and a large number of large employers, Washington has an 8.24% overall tax burden due to high sales and excise taxes as well as rising gas prices. 

Although the state is ranked as the second best place to live by the U.S. News & World Report, it only scores 26 out of 50 on the affordability scale.

The Wyoming

The state is tied with Tennessee for the second-highest national sales and local tax burden. The cost of living in the least populous state in the union is higher than average. 

Wyoming has the second-least dense population density, with six people per square mile. Its total tax burden is 6.42% due to low revenue tax rates, no pension income taxes, no corporate income taxes, and no personal income taxes.

Go to bscnursing Homepage To Get Relevant Content.

Related Posts

Leave a Reply