Which states have no income tax?
As of 2023, nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — do not levy a state income tax.
Yes and no. The more you earn and the higher the tax rate in your state, the more you can potentially save by moving to an income tax-free state. However, moving to a state with no income tax isn't always beneficial.
As of 2023, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax. Note that Washington does levy a state capital gains tax on certain high earners.
Of the nine states without income taxes, Alaska has the lowest overall tax burden, at 5.4%, followed by Tennessee (6.3%), New Hampshire (6.4%), Wyoming (6.6%) and Florida (6.7%). Consequently, Alaska has the lowest tax rate in the United States.
Instead of collecting income taxes, Texas relies on high sales and use taxes. When paired with local taxes, total sales taxes in some jurisdictions are as high as 8.25%. Property tax rates in Texas are also high. In fact, only a handful of states have higher property tax rates.
After looking at all the data, perhaps unsurprisingly, Florida came out on top. "Florida isn't known as a retirement paradise for nothing — it ranks as the best state to retire due to its relatively low taxes for retired people, including no estate, inheritance, or income taxes,” WalletHub wrote in its findings.
The state with the highest taxes is New York. New York is one of the states with highest income tax rates as well as high sales tax rates, high property taxes, and high excise taxes.
Among the top ten states to retire, Florida comes in at number one, followed by Colorado, Virginia, Delaware, Wyoming, Idaho, New Hampshire, Minnesota, Montana and Pennsylvania.
Be Super-Rich. Finally, it's quite easy to pay no income taxes if you're extremely rich. In our tax system, money is only subject to income tax when it is earned or when an asset is sold at a profit. You don't have to pay income taxes on the appreciation of assets like real estate or stocks until you sell them.
As the sales begin to rev up for 2023, Apple has listed the products that qualify for tax-free status on its website. Six states are listed—Alabama, Arkansas, Florida, Missouri, Tennessee and West Virginia.
Is Oregon tax free?
Oregon doesn't have a general sales or use/transaction tax. However, Oregon does have a vehicle use tax that applies to new vehicles purchased outside of the state. The tax must be paid before the vehicle can be titled and registered in Oregon.
Of those states, a few have high tax rates that you may need to be aware of. Maryland is the only state that imposes both estate and inheritance taxes, while Hawaii, Washington, Vermont, and Minnesota have been known for their high tax rates when it comes to death taxes.
Mississippi has the lowest cost of living in the United States. With a cost of living index of 83.3, expenses are nearly 17% less than the national average. Mississippi's housing costs are the lowest in the nation. The price of a median, single-family home is $140,818.
When cities and towns face dangerously high pension costs, they are forced to raise property taxes to cover shortfalls. So, residents pay more in taxes towards past government services and see fewer benefits from current government services for their money.
Taxes That Texas Does Not Levy
Texans pay federal income taxes but not state or local income taxes. Federal dollars contributed 37 percent of total state net revenue in fiscal 2023.
Is Texas tax-friendly for retirees? Texas is a tax-friendly state, as it does not have an income tax. As a result, Social Security retirement benefits, pension income, retirement account income and all other forms of retirement income are not taxed at the state level in Texas.
Texas does not have an individual income tax. Texas does not have a corporate income tax but does levy a gross receipts tax. Texas has a 6.25 percent state sales tax rate, a max local sales tax rate of 2.00 percent, and an average combined state and local sales tax rate of 8.20 percent.
But expensive housing isn't the only thing repelling retirees from the state. Inflation and stock market dips have also negatively impacted their financial situation. In response, seniors are seeking more affordable places to call home.
Iowa ranks as the number one state to retire to.
Since health care is a top priority for retirees looking to move, Iowa may be a good choice as it ranks well for medical care and access. Iowa also holds lower crime rates for senior citizens.
Key takeaways. The best state to retire is Iowa because of its lower cost of living, affordable but high-quality healthcare and low crime. Delaware, West Virginia, Missouri and Mississippi round out the top five. The best and worst states for retirees are split geographically.
Who has the highest property taxes in the United states?
1. New Jersey. New Jersey earns the top spot as highest property taxes not only in property tax rate, which is over the 2% mark, but in the actual dollars spent in property taxes; here the average home value is the highest on the list.
1. Bridgeport, Connecticut. As one of the wealthiest cities in America, Bridgeport carries the highest overall tax rate in the nation. Wealthy taxpayers earning over $150,000 per year are on the hook for up to 22% in state and local taxes.
Residents in Connecticut, Massachusetts, New Jersey and New York have some of the highest tax bills in the nation. They also pay thousands more in federal taxes than their state receives back in federal funding.
Key Findings on Retirees' Favorite Cities
Colorado has the highest number of happiest cities for retirees on our top 20 list, beating out Florida. Boulder, CO is the #5 happiest city for retirees, and Fort Collins and Denver also made the list.
Kentucky, New Jersey, and Mississippi top the list of the worst places to retire in the U.S. in 2024, according to a new survey from WalletHub. The study compared the 50 states across 46 key indicators, from tax rates and the cost of living to access to quality medical care and fun activities.
