Tax bills can get expensive, and many families often look for ways to pay less in taxes. State income taxes are important to factor in.
One way a family could manage this is by residing in a state that has no income tax.
The Sun reports that states with no income tax can help people save an average of $1,977 each year, according to Student Loan Hero.
There are 9 states total that do not make their residents pay on income tax.
While this is a nice perk, it doesn’t necessarily mean living in that state is going to be cheaper overall.
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Here are 9 states and everything to know about their income tax
There is no income or state sales tax for this state.
There is no estate or inheritance tax either.
Property taxes are around $1,182 for every $100,000 of assessed home value. This is on the higher end.
Beer tax is also high in this state at $1.07 per gallon.
Tax Refund: $500 extra dollars in this state
There is no income, inheritance, or estate taxes in Florida.
There’s a state tax of 6% as well as added localities taxes which can be up to 2%.
The tax burden is around 6.97% overall.
Nevada is another state that relies on high sales taxes as a form of revenue.
This means everything including groceries and gambling has sales tax on it.
The state tax burden is 8.23% of a Nevada resident’s personal income.
While the state taxes are high, the property taxes are low.
The tax rate is $533 per $100,00 of assessed home value.
There is no tax on inheritance or estate.
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New Hampshire taxes dividends and interest but not earned income.
There is so sales, inheritance, or estate tax.
There is excise tax.
South Dakota has no income tax, but it does have sales tax.
States sales tax is 4.5%, while localities can tax up to 4.5% as well.
Property taxes are higher than the national average at $1,219 per $100,000 of assessed home values.
There is no income tax in Tennessee but there is on interest and dividends from stocks investments.
Sales tax in the state is 7% and they have the highest beer tax out of all states at $1.29 per gallon.
While some of these taxes may seem high, the average property tax rate is relatively low.
It’s usually $636 per $100,000 of assessed home value.
There is no inheritance or estate taxes in this state.
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While there isn’t any income tax, some taxes are higher in Texas.
Sales tax can be as much as 8.25% in some places.
Median property tax rates are $1,692 for every $100,000 of assessed home value.
This is the seventh highest rate in the nation.
Excise taxes are high in Washington even though there is no state income tax.
Gas and the cost of living are high.
Taxes for property are about $929 for every $100,000 of assessed home values.
Wyoming is one of the least densely populated states in the country.
There is no income or retirement income tax.
Sales taxes are low.
The median property tax rate is around $575 per $100,000 of assessed home value.
Most tax revenue made in this state come from oil and other natural resources.
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