States with no income tax

[renferme]

I believe there are about 9 states with no state income tax.
Tenn., Fl, NV are no tax states.
But, several weeks ago, Larry Kudlow reported that about 6 more states
are considering eliminating their state income tax.
South Carolina was one of them, and if I remember correctly Ga. was another.
Does anyone remember the other states and does anyone know if
this will, indeed, happen ?

.

 

[mickeyd]

Add Texas to your list. No income tax, not considering it.

 

[TromboneAl]

For the states that are eliminating it -- are they replacing it with some other tax, or what?

 

[lazygood4nothinbum]

no talk of adding income tax to florida but now legislators are trying to get property taxes under control. under consideration is reducing prop taxes by 20-30% & increasing sales tax by 2 cents which i think would tie us with louisiana as having the highest sales tax rate in the country at 8%.

i better buy the new car before that kicks in.

 

[magellan_nh]

NH has no regular income tax, but they do tax dividends and interest at 5% after a $5k exemption.

On the other hand, property taxes are pretty high compared to some places. Expect to pay around $25-30 per $1000 of property value.

 

[Empty Pockets]

South Dakota has no state income tax, 32 miles from where I sit.

I send the State of MN about 8% for the priviledge of living here instead.

I'd love to move the state line East about 40 miles.

 

[John Tuttle]

No income tax in Washington.

 

[Outtahere]

NH has no regular income tax, but they do tax dividends and interest at 5% after a $5k exemption.

On the other hand, property taxes are pretty high compared to some places. Expect to pay around $25-30 per $1000 of property value.

That's true, lot's of MA residents move to NH expecting to save money, then the prop tax hits AND most of them work in MA so they have to pay MA state tax.

 

[2B]

Texas has no income tax but property taxes are horrible -- essentially equal to the typical mid-west income tax/property tax combo. My FIRE plan is to maintain a Texas address without property and "travel" which would avoid both taxes.

 

[Moemg]

Florida ,No income tax and maybe no property taxes in the future !

 

[73ss454]

Florida ,No income tax and maybe no property taxes in the future !

I hope your right. This is one screwed up state when it comes to property taxes. I have the same house as my neighbor except he has a pool. His taxes are $3800 and mine are 8K. He was here 3 years earlier and the homestead exemption saved him. This is why more people are leaving than coming to Florida.

 

[jazz4cash]

Florida ,No income tax and maybe no property taxes in the future !

Hang on 73ss454........I think Moemg means FL property values are going down?

 

[73ss454]

Hang on 73ss454........I think Moemg means FL property values are going down?

OK That'll help.

 

[jazz4cash]

For the states that are eliminating it -- are they replacing it with some other tax, or what?

Al!.......you're joking, right? If they dont get it one way, they're gonna get it another. Im interested in finding more states like DE (and maybe GA) that have tax breaks on retirement income..........somebody sent me a nice link I'll post in a bit.

 

[jazz4cash]

OK That'll help.

yeahbut...that's not usually the best way to save on property taxes!

 

[jazz4cash]

http://www.retirementliving.com/RLtaxes.html

............courtesy of Goonie

 

[73ss454]

yeahbut...that's not usually the best way to save on property taxes!

May not the best way but may be the only way to lower taxes. I could care less about the property value at this point because I plan to die here some day.

 

[Cut-Throat]

I hope your right. This is one screwed up state when it comes to property taxes. I have the same house as my neighbor except he has a pool. His taxes are $3800 and mine are 8K. He was here 3 years earlier and the homestead exemption saved him. This is why more people are leaving than coming to Florida.

No here is the deal. As soon as the Polar Cap melts Florida will be underwater. No one will live there, hence there won't be any property taxes to collect.

 

[Cut-Throat]

BTW

Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two others, New Hampshire and Tennessee, tax only dividend and interest income.

 

[haha]

I think Washington is on shaky ground. There is always talk of starting an income tax, and Washington has no revenue cow like oil and gas in Alaska, Texas and Wyoming; or gambling as in Nevada.

If Boeing and or MSFT hit rough times, WA gets an income tax and loses Ha.

Ha

 

[Goonie]

http://www.retirementliving.com/RLtaxes.html

............courtesy of Goonie

Thanks Jazz, I was going to dig around for that link, and post it again. You must be psycho psychic or something!

 

[wabmester]

I think Washington is on shaky ground. There is always talk of starting an income tax, and Washington has no revenue cow like oil and gas in Alaska, Texas and Wyoming; or gambling as in Nevada.

If Boeing and or MSFT hit rough times, WA gets an income tax and loses Ha.

I might welcome an income tax here. As long as it hits workers more than retirees, it should be a net benefit for us (assuming sales tax and property taxes go down).

I wonder how life is down in the southern portion of WA. No income tax, and a short drive to OR with no sales tax.

 

[RP]

@ haha: Boeing is no longer a Washington State corp, moved to Illinois some time ago, and building their newest aircraft in such places as South Carolina and even China.

As has already been stated here, one doesn't want to make a retirement choice based on state income tax because, in general, state income taxes are trivial compared with what you'll spend on general sales tax ... say in a state that taxes food and prescriptions versus on who doesn't, and especially property taxes.

When I last lived in the US I was along-term Colorado resident ... currently 4.63% flat rate income tax. But all my pensions were exempted so in effect I paid nothing. (my bond and investment income (within the US) are nil and I no longer own property there) ...Still maintain legal residency there .. they gave me a driver's license good until 2014 ... so that's 7 more years before I have to worry about an eye test/elder road test and their sales tax and property taxes, should we ever decide to move back are way lower than Texas or Florida.

It's a whole spectrum decision, not just income taxes. If I had substantial investment income, for example, then the 4.63% "flea bite might be more painful indeed ... it all depends.

 

[W2R]

States are going to get their money one way or another. If there are no income taxes, property taxes or sales taxes will be high, and if there is no sales tax, then income taxes or property taxes will be high, and so on.

I think it is most advantageous for retired people to choose states that specifically give retirees a break by not taxing social security and/or pensions. This might not be helpful immediately, if you don't qualify for either yet, but it will be helpful when you do. The reason why this is helpful is that most of the taxes are being extracted from other segments of the population and retirees are getting special privileges. So, the state is still getting their money from somewhere - - just not from us.

 

[haha]

@ haha: Boeing is no longer a Washington State corp, moved to Illinois some time ago, and building their newest aircraft in such places as South Carolina and even China.

True enough and hard not to notice for one who lives here ; but Boeing is still a very large employer and taxpayer in this state.

Ha