No one likes paying their income taxes. And, unfortunately,
these taxes can feel like something that is impossible to escape. What you
might not realize, however, is that you sometimes can escape this taxation…depending
on where you live. Believe it or not, some states actually do not have an
income tax. So, if you’re lucky enough to live in or move to one of them, you
actually can get out of at least this type of taxation.
Income Tax Free States
So, you’re probably wondering, what states allow you to
freely get away without paying income tax?
The answer is:
l Alaska
l Wyoming
l Florida
l Washington
l Nevada
l Texas
l South
Dakota
Murky States
If you aren’t lucky enough to live in one of the states
listed above, you might fall into one of the “murky area” states, which include
both New Hampshire and Tennessee.
Both of these states do not require an income tax to be
paid, but they do tax any interest or dividends you may receive.
Of course, everything isn’t all rosy. Tennessee does charge
state and local sales tax rates that are much higher than average, while New
Hampshire has really high property taxes.
Don’t Plan a Move Just Yet
Based on this information, you might be tempted to upend
your life and move somewhere new, somewhere where you can escape income taxes.
However, rest assured that most states that don’t charge
income taxes make up for it in other ways. Florida, for example, has very high
property taxes and sales taxes.
So, if you don’t live in an income tax free state, just work
with a financial professional to try and reduce the income taxes you do pay.
Chances are, with the right help, you can end up legally paying a lot less than
you do now.