The simplest way to save money is to pay less tax and also earn federal tax exempt income. Then, one method of saving on tax to start living in states with no income tax. But , even better is a State where you do not need to pay either income tax or sales tax. Is there one? Yes , the state of Alaska is the state with no income tax and no sales tax. Following is the list of states with no personal income tax or sales tax.
The location of Alaska is very remote, but there are distinct benefits attached to the resident of Alaska. Not only citizens of Alaska need not pay any income or sales tax, but they also receive an annual payment of dividend ( The payment for 2019 is $3,000).
Florida ranks 35th in affordability and the third lowest taxing state in the country. Being a citizen of this state with no income tax is certainly helpful.
Nevada ranks 37th on the U.S. on affordability . It levies sales tax heavily on almost all kinds of sale, it is still a very respectable at 22 out of 50 states on account of no personal income tax,
South Dakota has higher-than-average property taxes but lower sales tax rates than many other states. It does not levy a personal income tax, and also has a tax-friendly climate for retirees.
The state’s constitution forbids personal income tax. Texans’ overall tax burden, despite high sales tax and property tax, is still one of the lowest in the U.S.
Washington has the higher-than-average cost of living, It does not levy income tax on corporates too, therefore attracts many major employers. Washington ranks 44th in affordability ranking among all states.
Wyoming has an estimated six people per square mile, is the second least densely populated state. Wyoming does not levy personal income tax or corporate state incomes taxes.
Tennessee is as of now not fully comes within list of state no income tax because upto 2016 it taxed income from investments, interest and dividends. The Legislation passed in 2016 provides a plan to eliminate personal income tax by 2021.
9. New Hampshire
New Hampshire, ranks second on the U.S. News list of “Best States to Live In.”. It has also, like Tenessee , passed legislation to phase out completely personal tax by 2025. ,
5 States with No sales tax:
Conducting business in one of these five states, will free you from worries about collecting and remitting sales tax.
- New Hampshire
But note that some local areas within these states may still be charging a sales tax.