Can You Work From Anywhere? Perhaps This is An Opportunity to Lower Your Tax Burden
Working from home has become the norm for so many careers now. For many people, that means, literally “work from anywhere.”
Are you considering a move to a state where you can also lighten your tax burden? Moving to a state where you can enjoy a better quality of life and hold on to more of your personal income may be on your radar.
Relocating could improve your lifestyle, and your personal finances.
Here are the U.S. states with no state income tax.
#1 Alaska
Alaska may have a reputation for chilly mountain peaks, but many are surprised to find that Alaska’s weather can be quite pleasant.
According to Alaska.gov, during the summer, average daytime temperatures can range from the 60s to the 90s.
#2 Arizona
There is no state income tax in Arizona. The state is known for its beautiful desert landscapes and mild winters.
It is also a great place to retire, as the cost of living is relatively low and there are many retirement communities available.
Why Arizona?
Arizona has a warm climate, strong job growth, and reasonable housing costs. The average rent for an Arizona one bedroom is $1,325.00.
#3 Florida
Florida is yet another state with no income tax. The Sunshine State is a popular destination for retirees, as it has warm weather and plenty of activities to keep seniors active.
In addition to its tax friendly status, Florida is also home to many theme parks, making it a great place for families to visit.
Why Florida?
If you are a warm weather person, Florida may be the place for you. There is no snow in the Sunshine State, and plenty of beaches for ocean lovers.
#4 Nevada
Nevada is one more state with no state income tax. The state is best known for its gambling and entertainment options in Las Vegas.
Nevada, however, has much more to offer than just casinos. The state is also home to stunning natural scenery, including the Hoover Dam and Lake Tahoe.
Why Nevada?
Nearly three quarters of people living in Nevada live in the Las Vegas area, but there are plenty of other places to live.
In addition to no personal income tax, there is also no corporate income tax in Nevada.
#5 New Hampshire
“Live Free or Die” is the state motto for New Hampshire, yet another state with no state income tax. The state is known for its beautiful mountains and scenic lakes.
Why New Hampshire?
In addition to not having state income tax, New Hampshire also has no state sales tax.
New Hampshire doesn’t tax on goods purchased there.
#6 South Dakota
South Dakota also has no state income tax. The state is known for its wide open spaces and friendly people.
It is also a great place to retire, as the cost of living is very low and there are many retirement communities available.
Why South Dakota?
There’s more than just a great view of Mount Rushmore in South Dakota. This state consistently ranks as one of the highest in the nation for happiness.
#7 Tennessee
There is no state income tax in Tennessee. Nashville is known for its country music.
It is also a great place to retire, as the cost of living is relatively low and there are many retirement communities available.
Why Tennessee?
Tennessee has low property taxes. Living here may be a way to lower your total tax burden.
#8 Texas
Texas is another state with no income tax. The Lone Star State is a large and diverse state with plenty to offer its residents.
From big cities to small towns, there is something for everyone in Texas. The state is also home to many Fortune 500 companies, making it a great place to work.
Why Texas?
U.S. News and World Report ranked Austin the fifth best place to live in the United States.
#9 Washington
In the great Pacific Northwest, Washington is a state with no state income tax. The state is known for its beautiful scenery, including the Cascade Mountains and Mount Rainier.
It is also a great place to live if you are looking for a low-tax environment, as there is no state income tax in Washington.
Why Washington?
Washington’s job market is strong and continues to grow, with companies like Microsoft, Google, and Amazon in the Evergreen State.
Washington is also a stone’s throw from Oregon, where there is no state sales tax.
States With The Highest Income Tax
Being informed about federal income tax as well as state and local taxes and sales taxes can help you get a better idea of what your total tax burden will be. You’ll also want to consider your annual income, possible capital gains taxes, and other forms of taxation when getting a total picture of how much tax you will pay.
Now that we have discussed the states with the lowest income tax, let’t talk about the states with the highest state taxes. If you are considering your tax burden when deciding whether to move, you will want to avoid these states.
California
The state of California requires those receiving income from a California source anywhere from 1%- 12.3%.
Other States With High State Income Tax Rates
Connecticut has state income taxes ranging from 3% to 6.99%. If you live in DC, you’ll pay anywhere from 4% to 9.75%. Illinois has a flat 4.95% rate. Are you on the East Coast? Well, New York has 4%-10.9%, while New Jersey has 1.4% to 10.75%
Where To?
In this blog post, we went over the states with the lowest income tax and the highest income tax. As you can see, there are many states with no income tax.
Each state has its own unique perks and benefits that make it a great place to live. Whether you are looking for a low-tax state to retire in or you are looking for a state with plenty of job opportunities, there is sure to be a state on this list that is right for you.
