States With No Income Tax and the Lowest Tax Burdens
Everybody wants to live as affordable as possible and, to achieve this, most people decide to move. However, there are many factors you should have in mind when choosing a cheap state to live in. The first and most important is the state income tax. Nobody wants a high tax bill. But what are the states with low-income tax, and are there any states that don’t require an income tax? Best Long Distance Movers will answer these questions. Read on and find out the about the states with no income tax and the lowest tax burdens and make a final decision. Besides, find out what are other benefits of moving to these countries are. Then, sit back and enjoy the ride!
How to decide which state to move to?
When choosing the best state to move to, it’s essential to consider several factors other than tax rates that are equally important as tax bills. Choose the state by what you are looking for in life and pay attention to the factors such as:
- Cost of living and affordability: the cost of living plays a crucial role in living comfortably. That’s why you should look for states with no income tax and the lowest tax burdens. Besides, search the states with low property taxes.
- Job market and the range of opportunities: Job availability will mainly impact the quality of your life, so do thorough research for the states that offer a variety of jobs in your industry.
- The School system is a huge factor if you are moving with your children. A sound school system will ensure vital education for the kids.
- Transportation: Nobody wants to spend hours commuting, so search for a state with a robust transportation system, low commute time, and proximity to other places.
- Crime: Safety should be your priority, especially when moving with children.
All these factors play a crucial role in a quality lifestyle, but above all, you should search for a state that offers you happiness and peace of mind. And, whichever country you choose, you know where to find the best long distance moving companies – check our database and ensure a seamless moving experience and enjoy your new life as soon as possible. We’ll help you find a reliable moving company no matter your location. So now, let’s check the states with no income tax and the lowest tax burdens.
A list of states with no income taxes
There are currently seven states with no income taxes:
- South Dakota
Things to consider before moving to a no-income-tax state
Moving to a state with no income tax has its pros and cons. It may be a double-edged sword. You may wonder about the disadvantages of moving to a state where you don’t need to pay an income tax, but there may be some. No-income-tax states need to compensate for revenue losses by charging other things, such as property taxes, excise taxes, or sales taxes. Taxes are also a huge source of income since the states use them to support public services such as education, healthcare, and infrastructure. For example, Texas may not charge you for your earnings, but its property taxes are one of the highest in the country. That’s why you should consider all the factors mentioned above.
However, having higher property or sales taxes does not necessarily mean these taxes are too high. It depends on the country. Simply, you should research all tax rates in a county of your potential choice. Now, let’s have a look at each state individually.
It’s no wonder Florida is called The Sunshine State, not only because of the sunny weather and sandy turquoise beaches. It seems like Florida is heaven on earth. Besides being perfect for leading a healthy and quality lifestyle, Florida offers many benefits related to affordability. When it comes to taxes, Florida has no state income tax. However, this only refers to individual income tax. When it comes to corporate income tax, corporations in Florida must file a corporate income tax return which is about 5.50% (unless they are an exemption).
Regarding other taxes, the sales tax rate is about 6%, ranking Florida 17th. On the other hand, property taxes are paid as a percentage of owner-occupied housing value. As a result, state and local property tax collection per capita is about $1455. All in all, the total tax burden is about 6.98%, which is the sixth-lowest in the country.
So, if you are considering moving to Florida, calculate everything and see whether it suits you and your budget. And if you decide to move her, we’ll help you get matched with some of the best long distance movers Florida has to offer.
Alaska: no income tax but a high cost of living
Alaska may not sound like a perfect place to move to at first. However, it has a lot to offer alongside no income taxes. It’s a hidden gem. First, however, let’s talk about taxes. If we look at the total tax burden in Alaska, which includes income, property, sales, and excise taxes, it is just 5.10% of individual earnings, which is the lowest of all 50 states. However, don’t let this trick you. Although tax rates are low, Alaska’s living cost is pretty high. It is primarily dues to the state’s location. Did you know that Alaska has the second-highest beer tax? If beer is not the main reason to move to Alaska, then check some of the best long distance moving companies Alaska offers and move like a pro.
Wonder about Nevada’s tax rates? Nevada does not have an individual income tax, nor it has a corporate income tax. However, Nevada does charge a gross receipts tax. Nevada relies on revenue from sales taxes on almost everything. For example, it sets on clothes, groceries, alcohol taxes, gambling, casinos, and even hotels. Now, let’s have a look at the percentages:
- State sales tax: 6.85 %
- Local sales tax: 1.53 %
- Local and state combined tax: 8.23 %
- State gasoline rate: 50.48 per gallon
- Cigarette tax rate: $1.80 per 20-pack
Regarding affordability, Nevada comes in 41st place, almost at the bottom. What you may find disappointing is that Nevada does not spend much on education. If Nevada is still your choice, hire some of the best long distance moving companies Nevada has and move without any stress. When it comes to Nevada’s median property tax is $572 per $100,000 home value. It is one of the lowest rates in the U.S.
Texas is one of the states with no income tax
One may say that Texas detests personal income taxes since you can find the prohibition in the state’s constitution. However, Texas must pay the bills and rely on sales taxes like many other countries. Sales tax can go up to 8.25%. Property taxes are also higher than in other states. Regarding living conditions, Texas is average in affordability at 31st in the country, ranked by U.S. News & World Report on the list of “Best States to Live In.”
Regarding property taxes, Texas has rates from 2.3 to 2.8% annually, depending on the area. It may seem high, but in comparison to New York, California, or some other high-tax states, these are significantly lower. So, looking at the big picture regarding taxes, Texas is a great state to move to. So, if Texas is your final choice, you know where to look for some of the best long distance movers Texas residents gladly choose.
Want to move to South Dakota? Check some of the best long distance moving companies in South Dakota in our database. However, before making a decision, check the state’s taxes. Dakota is also one of the states with no personal income tax, but what about other taxes, such as sales tax, property tax, or others? Let’s find out whether it’s worth the money moving here despite no income taxes. Namely, South Dakota has to earn from somewhere. It has a 7.37 total tax burden.
Like many other states, South Dakota draws on the revenue from other forms of taxation, such as sales and taxes on cigarettes and alcohol. Besides, it has higher property taxes than Texas. When it comes to affordability, South Dakota ranks 14th. Unlike Nevada, South Dakota spends more money on education. The median property tax rate in South Dakota is above the national average – $1,300 per $100,000 of assessed home value.
Consider moving to Wyoming
Wyoming is similar to Alaska when it comes to population. Namely, it is the second least densely populated state. Its residents don’t pay personal income taxes and corporate taxes. Besides, Wyoming is trying to attract seniors to move here by not having retirement income taxes. However, it seems that all these are not reasons enough for people to move here. But there’s one more reason you should move here with some of the best long distance movers in Wyoming. The total tax burden is 6.14% which is pretty low. As Texas, Wyoming also pays a lot for education. So, if you are moving with children, consider Wyoming a potential destination.
Tennessee does not have an individual income tax. However, it levies other taxes:
- corporate income taxes of 6.50 percent
- state sales tax rate of 7.00 percent
- local sales tax rate of 2.75 percent
- combined sales tax rate of 9.55 %
If Tennesee taxes fit you, choose some of the best long distance movers Tennessee to perform your relocation.
Is it worth moving to a state that does not have an income tax?
There’s no universal answer to this question. But as you can see, some states with no income tax have other higher tax rates. However, if you are to compare the conditions and look at the big picture, there is a balance in taxation. For example, it is worth moving from New York to Texas since New York is a state with high tax rates. So, if you are a New Yorker searching for less taxation, move to some of these countries with some of the best long distance movers New York has to offer. All in all, look at all aspects before deciding to move to a no-state-income country.
States with the lowest tax burdens
As you can see so far, moving to states with no income tax can be a double-edged sword. On the one hand, it’s great that you don’t have to pay for personal income, but on the other hand, you may come across higher property taxes. However, some countries are pretty tax-friendly and have the lowest tax burdens. Here’s the list:
- North Dakota
Now, let’s check their main traits.
Even though North Dakota has an income tax, the tax rates are relatively low, especially for middle-class people. The state income tax range is 1.1%. The average combined state and local sales tax rate is 6.96%. Regarding sales taxes in North Dakota, they are below average, too. Besides, property taxes in North Dakota are very reasonable. The tax on a $300,000 home is assessed to be about $2,970 annually. It is a little below the national median property tax. As you can see, North Dakota is a very tax-friendly country, and it pays off to move here, especially if these rates suit your budget. Check our database and hire the best long distance movers in North Dakota if you decide to move here.
You may find it surprising to hear that California is a tax-friendly state. Well, it is, and it isn’t at the same time. It depends on whether you are from a middle-class family or richer. If you are a rich person, it doesn’t pay off to live in California. Let us see how:
- State income tax range 1%
- Single filers have taxable income up to $10,100, $20,200 for join fillers, and 13.3% on taxable income over $1 million for single fillers, one of the highest top rates in the nation.
- When it comes to the average combined state and local state tax rate, it is about 8.83%. Last but not least, California sales tax nos 7.2%.
Want to move to CA? Check some of the best long distance movers in California, and move without any hassle.
Before hiring the best long distance movers Arizona, let’s check its taxing system. Arizona has a high sales tax starting at 5.6%. However, it has low-income taxes, and the highest rate for middle-class people doesn’t go over 2.98%. The average combined state and local tax rate is 8.4%. The median property tax is $645 per $100,000 of estimated home value.
Delaware has the sixth-lowest median property tax range in the nation. As a result, if you own a home worth $300,000, the estimated tax is around $1,704 annually. However, personal income tax is very high, around a 6.6% tax rate. So, before deciding to move here with the best long distance movers in Delaware, calculate whether it’s worth paying low property tax and higher income tax.
Which states should you avoid if you don’t want to pay high personal income tax?
You probably assume which countries have the highest tax burdens. These are:
- New York – New York’s tax burden is about 13.3%
- Hawaii – 11%. So, if you want to move from Hawaii to another country, check out some of the best long distance movers Hawaii offers.
- New Jersey – due to the high taxes, NJ has faced a decrease in population. Personal income tax is 5.5%, while sales taxes are 6.6.
- Vermont – personal income tax is 6.6, while property taxes are 1.5
However, don’t forget that California can also be on this list, depending on the class position.
How to determine whether a country is suitable for you?
Besides searching for the states with no income tax and lowest tax burdens, there are other factors to consider, like the ones we’ve mentioned. These are career opportunities, education system, culture and diversity, real estate market, traveling time, climate, and many others. Although it may sound too much, these are the critical factors for leading a happy and successful life.
Is it better to move to states with no income tax or with the lowest tax burdens? As previously said, there’s no correct answer to this question. To decide, you’ll have to list all the states and their tax rates and compare them. However, there is one universal answer on where to move. Move somewhere you’ll feel happy. Strive for the factors mentioned above. And when it comes to taxes, we pay them either way. Whether the state has income tax or not, it’s not the may reason to move somewhere, although it’s a huge benefit.
So, no matter where you are moving from or to, Best Long Distance Movers are here to help you find the right moving company. So, if you are moving from Seattle, WA, for example, contact us, and we’ll get you matched with some of the best long distance movers Washington has ever seen.
How to prepare for the move
The key to a successful relocation is planning. Best Long Distance Movers are here to help you make a solid moving plan. Here’s what you should pay attention to:
- Hire movers – This is the first step you should take. For example, if you are moving from Bostom, MA, hire the best long distance movers, Massachusetts. They’ll make a customized moving plan according to your needs.
- Plan your moving budget accordingly – get various quotes from different companies and compare the prices. Then, choose the one that fits your budget.
- Gather the necessary documentation on time and have it at hand
- Make a moving plan – the timeline will help you streamline the move.
- Make a list of your items – an inventory list will help you stay decluttered and stay organized
- Pack your essential bag first – pack the things you use daily, such as your toothbrush or anything you find essential. Also, don’t forget to pack up a first-aid kit.
Contact us today and find suitable long distance movers
If you have decided where to move, it’s time to find a trustworthy company that handles your relocation tasks. And there’s no need to search more. Best Long Distance Movers is the database you need. Whether you are moving to states with no income tax and the lowest tax burdens, we’ll help you get matched with some of the best and most reliable long distance moving companies. So, reach out to us today, and we’ll get you checked with a suitable moving company. Good luck with your relocation.