Each state normally finds a way to tax people, even though they may not tax your income. There are seven states states that do not tax your personal income. Personal income includes capital gains, wages, and dividends.
- Alaska
- Florida
- Nevada
- South Dakota
- Tennessee
- Texas
- Wynoming
There are two states that have no taxes on certain parts of income.
- New Hampshire does something different, does not taxes wages. They do tax dividends and interest income. New Hampshire dividend and interest tax rate: 4% for dividends and interest from 2024, 3% for dividends and interest from 2025 forward.
- Washington does not tax wage income, but taxes capital gains. Washington capital gains tax rate is 7%.
Tax season brings the realization that many of Americans do not want to have to pay more taxes. This starts the research of where to go and compare the prices of items, taxes, and living style that fits their needs. The determining factor that goes through my mind is how the income I am making now would change.
Although those states have minimal taxes on income, remember that many states will find another way to get the money they need. For example, Texas and New Hampshire rank in the top 10 for highest property taxes. Tennessee and Washington rank in the top 5 for highest sales tax.
This information is meant to say, do your research before making a big move. Intuit provides a lot of good information, head over to this page to find more statistics. States with the Lowest Taxes and the Highest Taxes – TurboTax Tax Tips & Videos (intuit.com)
Questions about the deadline for taxes?
Read When is Tax Season in 2024?
Are there states with no sales tax?
Read No sales tax states