No Income Tax States: Who Benefits From Living in One

Everybody wants lower taxes. But how do states run when there's no state income tax?

Unfortunately, they make up for it somewhere else like higher sales tax or higher property taxes. Keep scrolling to see if you would benefit from a no income tax state.

Are you a high earner?

High earners benefit from no tax states because they can make as much as they want without paying more taxes. This may offset higher tax in other areas when the income is significantly higher.


Are you frugal?

You'll do well in a no tax state if you don't go out and spend tons of money. States like Tennessee have a sales tax up to 7% that can be seen as more costly than Washington state where there's 0 sales tax.


Do you own property?

Since tax builds revenue for the state, the state will get their money one way or the other. You're more likely to benefit from living in a no income tax state if you  don't own property.


Do you need public transportation?

You may not find lots of public services in a state or area that doesn't have high taxes. If you need these services, you might need to  pay the taxes for it.


Do you want to invest?

If you're trying to save money to invest more money, a no income tax state can help. But it will require you to have solid income and live a little frugal to maximize the return.


Tap the link below for more tips on who benefits from living in a no tax state!