Author Topic: Not All Income Tax-Free States Are Alike  (Read 1831 times)

Offline MamaLiberty

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Not All Income Tax-Free States Are Alike
« on: December 17, 2014, 01:28:52 PM »
Of possible interest to those thinking of moving to Wyoming.

Not All Income Tax-Free States Are Alike
December 16, 2014

Nine states -- Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Wyoming, Washington and Tennessee -- lack a general state income tax, but the taxing similarities between them stop there. A new report from NCPA Senior Fellow Pam Villarreal details how sales and property tax rates vary among the no-income-tax states and how some may be better off by moving from one state to another.

When a state lacks an income tax, it tends to make up that lost revenue in two major ways: sales taxes and property taxes. Alaska and New Hampshire do not have a sales tax, but South Dakota and Wyoming impose 4 percent tax rates while Florida's rate is 6 percent, Texas' rate is 6.25 percent, Washington is 6.5 percent, Nevada's rate is 6.85 percent and Tennessee\'s rate is 7 percent. Property tax rates also vary wildly among the no-income-tax states, ranging from a median 0.58 percent rate in Wyoming to 1.81 percent in Texas.

Using the NCPA's State Tax Calculator, Villarreal compared consumers in the no-income-tax states. For example:
It's not that people are dumber, it's that stupidity used to be more painful.