NO INCOME TAX STATES
HOW THEY DO IT
Here is a list of No Income Tax States and reasons they are States With No Income Tax.
There are NINE* STATES With No Income Tax for individuals (and we are talking about personal income tax here).
The States Without Income Tax (yes, they are the envy of most other States in the Union) are all listed below.
"America is a land of taxation that was founded to avoid taxation." ~Laurence J. Peter (www.QuoteGarden.com)
The Nine* No Income Tax States (again, no broad-based personal income tax) -- each of which offers it's own beauty and can be a very nice place to live -- are as follows:
According to the Alaska Department of Revenue, Alaska gets the lion's share (approximately 90%) of it's revenue from oil production. These revenues stem primarily from taxes on corporate income, property, oil production, and the State's oil production royalty share.
There's no shortage of license fees, taxes, surcharges, surtaxes, and assessments in Florida! We counted over 70 different types of revenue collection instruments in the Florida Tax Handbook. This State brings in huge revenues from millions of tourists who travel there every year!
If you guessed most of Nevada's tax revenues come from gaming, you were close. According to the State of Nevada's Executive Budget, Sales and Use Taxes bring in about a third of all the State's revenues and Gaming Taxes run a close second at over 25% of total revenues.
The State of New Hampshire doesn't have a personal income tax or a sales tax. How cool is that??? Although they do collect plenty of revenue from at least 14 other primary taxes, The Tax Foundation indicates they rely very heavily on State and Local Property taxes.
*Interest and dividend income is taxed at 5% in New Hampshire.
The South Dakota Department of Revenue and Regulation shows on their website that they derive revenue from four areas, Business Taxes, Property Taxes, Special Taxes and Motor Vehicles. There are no individual or corporate income taxes levied in the State of South Dakota.
In addition to 20 other types of taxes the Tennessee Department of Revenue collects, Tennessee has a severence tax on things like coal, certain minerals, crude oil and natural gas, which is imposed on all of these products, sold inside or outside the State of Tennessee.
*Interest and dividend income is taxed at 6% in Tennessee.
Similar to Florida, there's lots of taxes in Texas! The State of Texas Comptrollers Office says they collect over 60 different types of taxes for the State. Taxes are collected on all kinds of things from Automotive Oil Sales to Fireworks and even Sexually Oriented Business Fees.
As in South Dakota, there is no personal or corporate income tax levied in the State of Washington. However, Washington State does collect a good deal of tax revenue from Businesses in the form of what they call a Public Utility Tax and/or a Business and Occupation tax.
As one of the No Income Tax States, Wyoming is pretty cool because, like South Dakota and Washington State, they too do not levy a corporate income tax either. Even cooler, they also don't tax bank accounts, bonds or stocks -- or even retirement income from out of State.
* NOTE: As indicated, in the States of New Hampshire and Tennessee, some interest and dividend income is taxed. Please see those state websites for more information about these taxes.
Now that you know all of the States Without Income Tax, maybe you can move to one of them and save a buck here and there.
We certainly hope you at least feel much more knowledgeable about which of the 50 States That Have No Income Taxes!
CLICK HERE TO SEE THE FIVE STATES WITH NO SALES TAX
Believe it or not, besides all of the States Without Income Tax, there are also still Five States with No Sales Tax, each of which retain a type of unique status in the United States. For those of you keeping score at home, that's 10%!
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