States With The Highest State Income Tax vs States With No State Income Tax

[JimRaynor]

States with HIGHEST INCOME TAX are,

California 13.3%
Hawaii 11%
Oregon 9.9%
Minnesota 9.85%
Iowa 8.98%
New Jersey 8.97%
Vermont 8.95%
District of Columbia 8.95%
New York 8.82%
Wisconsin 7.65%


States with NO INCOME TAX are,

Wyoming
Washington
Texas
South Dakota
Nevada
Florida
Alaska



The obvious question then becomes, why does any state have income Tax? Florida and Texas, the 2nd and 3rd largest state in terms of population after California not only have very vibrant economies, but their cost of living is far less, they also have one of the lowest property taxes in the country to boot. Further proving what an absolute scam most of these taxes are.

[The Big Dunn]

Looks like they make up for no income taxes with higher taxes in other areas.



So what are the benefits of living in a state with no income tax?
Living in a state that doesn’t tax income can be a major advantage ?especially to those in high income households. While many states force high earners to pay high taxes, states without personal income tax do not tax their earnings at all. This allows high earners to save much more of their money. For this reason, many wealthy individuals choose to live the majority of the year in states without a state income tax. Of course, not having to pay state income tax also benefits individuals of all income classes. Come tax season, residents of these states are able to pocket their hard-earned money and save for retirement, vacations, school tuition and more.

Are there any downsides to living in a state with no income tax?
Be aware that if a state doesn’t impose state income tax, it typically makes up for it by raising taxes elsewhere. For instance, while Texas and New Hampshire do not tax earned income, they do have exceptionally high property tax rates, according to Business Insider.

In addition, many of these states also impose high sales tax on groceries and goods. Bankrate points out that Tennessee has one of the highest sales tax rates in the country, charging a 7 percent sales tax statewide. T

he website also notes that “Texas and Nevada have above-average sales taxes, and Texas also has higher-than-average effective property tax rates. Florida relies on sales taxes, and its property taxes are above the national average.?/i>

[HewJohnson]

States with HIGHEST INCOME TAX are,

California 13.3%
Hawaii 11%
Oregon 9.9%
Minnesota 9.85%
Iowa 8.98%
New Jersey 8.97%
Vermont 8.95%
District of Columbia 8.95%
New York 8.82%
Wisconsin 7.65%


States with NO INCOME TAX are,

Wyoming
Washington
Texas
South Dakota
Nevada
Florida
Alaska



The obvious question then becomes, why does any state have income Tax? Florida and Texas, the 2nd and 3rd largest state in terms of population after California not only have very vibrant economies, but their cost of living is far less, they also have one of the lowest property taxes in the country to boot. Further proving what an absolute scam most of these taxes are.

There’s typically higher costs elsewhere when a state has no income tax, but it’s not comparable to the highest income taxes like Cali or NY.
In Cali and NY everything is high.


That’s why plenty of mega rich people like to claim residence in Florida, such as Trump or Robert Kraft.

[JimRaynor]

Looks like they make up for no income taxes with higher taxes in other areas.



So what are the benefits of living in a state with no income tax?
Living in a state that doesn’t tax income can be a major advantage ?especially to those in high income households. While many states force high earners to pay high taxes, states without personal income tax do not tax their earnings at all. This allows high earners to save much more of their money. For this reason, many wealthy individuals choose to live the majority of the year in states without a state income tax. Of course, not having to pay state income tax also benefits individuals of all income classes. Come tax season, residents of these states are able to pocket their hard-earned money and save for retirement, vacations, school tuition and more.

Are there any downsides to living in a state with no income tax?
Be aware that if a state doesn’t impose state income tax, it typically makes up for it by raising taxes elsewhere. For instance, while Texas and New Hampshire do not tax earned income, they do have exceptionally high property tax rates, according to Business Insider.

In addition, many of these states also impose high sales tax on groceries and goods. Bankrate points out that Tennessee has one of the highest sales tax rates in the country, charging a 7 percent sales tax statewide. T

he website also notes that “Texas and Nevada have above-average sales taxes, and Texas also has higher-than-average effective property tax rates. Florida relies on sales taxes, and its property taxes are above the national average.?/i>

Why do I care that wealthier people pay no income tax if I don't have to pay income tax. Why are you people so obsessed with other peoples money?


And are you seriously arguing that the cost of living in Tennessee, or Florida or Texas is even close to a place like NJ NY or California where they have the highest rate of migration from the state because of cost of living. No one and I mean no one is moving to the north east or coastal west because of low cost of living.

[DreamerUSA]

Income taxes as well as property taxes are evil in my opinion. Sales taxes and taxes on things the government actually provide, is how governments should collect taxes. And yes you will be hit harder in other areas, but at least there is a semblance of choice associated with sales or excise taxes.

[JimRaynor]

Looks like they make up for no income taxes with higher taxes in other areas.



So what are the benefits of living in a state with no income tax?
Living in a state that doesn’t tax income can be a major advantage ?especially to those in high income households. While many states force high earners to pay high taxes, states without personal income tax do not tax their earnings at all. This allows high earners to save much more of their money. For this reason, many wealthy individuals choose to live the majority of the year in states without a state income tax. Of course, not having to pay state income tax also benefits individuals of all income classes. Come tax season, residents of these states are able to pocket their hard-earned money and save for retirement, vacations, school tuition and more.

Are there any downsides to living in a state with no income tax?
Be aware that if a state doesn’t impose state income tax, it typically makes up for it by raising taxes elsewhere. For instance, while Texas and New Hampshire do not tax earned income, they do have exceptionally high property tax rates, according to Business Insider.

In addition, many of these states also impose high sales tax on groceries and goods. Bankrate points out that Tennessee has one of the highest sales tax rates in the country, charging a 7 percent sales tax statewide. T

he website also notes that “Texas and Nevada have above-average sales taxes, and Texas also has higher-than-average effective property tax rates. Florida relies on sales taxes, and its property taxes are above the national average.?/i>

The bolded part is rich,

Texas makes up for its lack of income tax with higher property taxes VS NJ which makes up for having one the highest state income taxes with also having the highest property tax in the country.

[man down]

States with HIGHEST INCOME TAX are,

California 13.3%
Hawaii 11%
Oregon 9.9%
Minnesota 9.85%
Iowa 8.98%
New Jersey 8.97%
Vermont 8.95%
District of Columbia 8.95%
New York 8.82%
Wisconsin 7.65%


States with NO INCOME TAX are,

Wyoming
Washington
Texas
South Dakota
Nevada
Florida
Alaska



The obvious question then becomes, why does any state have income Tax? Florida and Texas, the 2nd and 3rd largest state in terms of population after California not only have very vibrant economies, but their cost of living is far less, they also have one of the lowest property taxes in the country to boot. Further proving what an absolute scam most of these taxes are.

I've asked this question many times. How can one state have no taxes and others have such a high tax rate and always try to raise them.

[HewJohnson]

Why do I care that wealthier people pay no income tax if I don't have to pay income tax. Why are you people so obsessed with other peoples money?


And are you seriously arguing that the cost of living in Tennessee, or Florida or Texas is even close to a place like NJ NY or California where they have the highest rate of migration from the state because of cost of living. No one and I mean no one is moving to the north east or coastal west because of low cost of living.

Exactly.
It’s not comparable.

[The Big Dunn]

Why do I care that wealthier people pay no income tax if I don't have to pay income tax. Why are you people so obsessed with other peoples money?


And are you seriously arguing that the cost of living in Tennessee, or Florida or Texas is even close to a place like NJ NY or California where they have the highest rate of migration from the state because of cost of living. No one and I mean no one is moving to the north east or coastal west because of low cost of living.

The bolded part is rich,

Texas makes up for its lack of income tax with higher property taxes VS NJ which makes up for having one the highest state income taxes with also having the highest property tax in the country.

Huh? I just posted a link that gave insight as to why states do or don't have certain taxes. I didn't take a position either way. I didn't post anything about other people's money.

The part you bolded came directly from the article. I didn't suggest, post or imply anyone would be moving to the north or the coasts.

[man down]

NV state sales tax is the same as CA.