7 state where income tax is absent

States collect personal income tax to fund services such as education and medical care on municipal infrastructure. A significant part of the income of the states is formed by income tax from individuals, as well as from sales tax and business tax. However, in some states there is no income tax; instead, citizens are charged other types of taxes. Go banking rates collected a list of states where income tax is absent.

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Alaska

There is no individual income tax or sales tax in Alaska. Most of the state’s revenue comes from oil exports. Trans-Alaska-pipeline system.

When oil prices are high, the state receives a surplus of income that goes to the Alaska Permanent Fund. But lately oil prices have been falling, and the state is thinking about introducing income tax.

Florida

Lack of income tax, warm weather all year round, high working prospects make Florida a very attractive staff to move. The state levies other taxes, for example, sales tax - 6%.

Nevada

In Nevada, the lack of income tax is compensated by sales tax - 6,85% (13 -th place among the US states at the rate of this tax). In 2017, the state announced its intention to raise the sales tax rate.

South Dakota

South Dakota is a sparsely populated state. There is no income tax, and sales tax is only 4,5%. However, the staff is bad with jobs, and the minimum wage is only $ 8,65 per hour.

Texas

Texas residents also do not pay income tax, but they pay income tax - 6,4% and real estate tax, which is one of the highest in the country. In addition, the state’s minimum wage is $ 7,25 per hour.

Washington

There is no income tax in Washington, but the sales tax is 6,5%. The minimum wage here is $ 11 per hour.

Wyoming

In Wyoming, there is no individual income tax and income tax for businesses, which makes this state attractive in the eyes of businessmen. In addition, sales tax is reasonable 4%. Wyoming receives income from oil production, and this compensates for the lack of income tax.

By 2022, they promise that Tennessee will be the eighth state where there will be no income tax.

Living in a state where there is no income tax may seem like an attractive idea. But it should be borne in mind that the state needs to earn money, and, most likely, you will be charged other taxes, such as a sales tax or a real estate tax.

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