Taxes and tax liability can get to be expensive very quickly. Income tax can take a percentage of a paycheck. Some states do not have a personal income tax. Living in these states may have a person reduce their tax liability. There will be no state income tax that is owed or that will be taken out of the paycheck. Some states make up for this in other ways but people can be expected to keep more of their take-home pay.
Alaska does not have a state income tax and this state does not have sales tax. Some of the municipalities may place their tax on residents but that will vary by town. The coal mining and oil drilling bring tax revenue to this state. Alaska can be expensive and goods may be a little higher to purchase but there is no income tax to pay.
This is another state with no income tax. It is a popular place to retire but there is something to keep in mind. This state relies on property taxes and sales tax to keep it going. Sales tax is around 6 percent. Many people head to Florida to retire since they will not have to worry about taxes and getting their taxes done. They will not have to pay their state income tax and worry about this tax to the state.
This is another state that is free from income tax. The sales tax is 6.8 percent which helps make up for some of this revenue. There is also revenue made from the gambling-related activity so the residents do not have to pay income tax.
This state does not tax income and wages. There is no sales tax. The state does take a five percent tax on the interest income that is over $2,400 a person or $4,800 for people that file their federal taxes jointly. There are some exemptions on the interest income tax. People that are elderly, blind, or disabled do not need to worry about the five percent interest on dividends income.
This state does not collect income tax from the residents and it has a lower rate for sales tax. A municipality may be able to collect 2 percent from the resident and some special taxes are collected from the Department of Revenue. Overall this state is affordable for most people to live.
This state does not have residents pay an income tax on their wages. There is a Hall Tax which is going to be phased out by the 2022 tax season. This is tax dividends and interest taxes. The Hall Tax is down to one percent and is going to be gone by 2022. This tax originated at 6 percent.
Texas does not have an income tax for the residents. There are some ways that Texas makes up for this and gets money from the residents. The sales tax in Texas is 6.25 percent. There is an additional 2 percent that local jurisdictions charge when a person makes a purchase. This adds up to 8.25 percent total in sales tax.
Washington State does not have an income tax for its residents. They do have a sales tax that is very high. The state sales tax is at 6.5 percent. The city and the municipality can add additional rates to make sales tax even higher. The sales tax in this state can become as high as 10 percent of the total amount of purchase.
This state does not have a personal state income calculate tax for residents to pay. There is a 4 percent sales tax and local cities can charge an additional 1.36 percent on purchases. This brings the sales tax to around 5.36 percent and for some, this is still not a bad rate and is about average.
These states do not have residents pay a state income tax. This will allow people that live in these states the ability to keep more money from their paychecks and take-home pay. While some states may have a higher rate for sales tax on purchases there is still no income tax that will need to be paid directly to the state.