Our forum runs best with JavaScript enabled !

Pros and Cons of Living in a State With No Income Tax

View previous topic View next topic Go down

Pros and Cons of Living in a State With No Income Tax Empty Pros and Cons of Living in a State With No Income Tax

Post by Rễ Sim Sun Feb 06, 2022 10:18 pm

.

John Csiszar
Sat, February 5, 2022, 8:01 AM·3 min read


Pros and Cons of Living in a State With No Income Tax 379b043776bfa79ff7db124b57afe5d0

THEPALMER / iStock.com


Every U.S. citizen is responsible for paying federal income tax, and some taxpayers also must pay a separate state income tax. As of 2022, just nine states don’t impose any additional income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
At first glance, it might seem as if there’s no reason to live in a state with income tax, as it simply adds an additional financial burden to your budget. But there are both pros and cons to living in a state that has no income tax.
Help: How To Itemize Deductions Like a Tax Pro
See More: All the States That Don’t Tax Social Security

Pro: You’ll Have To Pay Only Federal Income Tax

The top federal income tax bracket for 2022 is 37%. If you find yourself in that bracket, you’ll already be forking over a significant amount of your income to the federal government. Adding state income tax on top of that, especially in a high-tax state like California, can push your total income tax bill to over 50%. Rates like that are enough to push some high earners away from high-tax states like California to no-tax states like Texas.

Con: Other Taxes Might Be Higher

States that have no income tax aren’t excessively wealthy and benevolent. They simply have a different structure for raising revenue. With no income tax dollars coming in, these states must get that revenue from other sources.
Typically, this translates to higher sales taxes, property taxes and/or gasoline taxes. For example, homeowners in New Hampshire and Texas pay some of the highest property taxes in the country, at 1.89% and 1.6%. Washington charges the third-highest gasoline taxes in the country, at 49.4 cents per gallon.
While you might not have to pay state income tax, your overall tax bill actually might end up being higher, depending on your lifestyle. If you don’t own property and you use public transportation, for example, your tax bill likely will be significantly lower. But if you own some expensive real estate and drive a gas-guzzling car for your daily commute, your tax bill could be significant.

Con: Lower Infrastructure and Education Spending


In some cases, having no state income tax does translate to lower revenue for individual states. In turn, this may result in lower state spending on basic services. According to a 2021 analysis by the U.S. Census Bureau, South Dakota and Wyoming — two states with no income tax — spent the least amount on education of all 50 states.
Other states with no income tax revenue may lower spending in other areas, such as infrastructure. As a resident, you’ll have to decide whether that tradeoff is worth it.

Is It Better To Live in a State With No Income Tax?


At the end of the day, whether or not it’s better to live in a state with no income tax depends in part on your personal financial situation — but there are other considerations as well. For example, quality of life and the lifestyle you choose to live are also important.
From a strictly financial standpoint, it’s important to remember that the amount you earn plays a large role in your tax situation. If you’re a single taxpayer living in California and earning $1 million per year, for example, tax rates reach a whopping 13.3%. However, if you earn a low-to-moderate wage, tax rates are not that onerous, even in California. As with any financial question, there’s no black-and-white answer to whether it’s preferential to live in a state with no income tax, as a number of personal factors come into play.

This article originally appeared onGOBankingRates.com:]Pros and Cons of Living in a State With No Income Tax

_________________
Mõ nhọn đại ca Rolling Eyes
Rễ Sim

Rễ Sim


Back to top Go down

Pros and Cons of Living in a State With No Income Tax Empty Re: Pros and Cons of Living in a State With No Income Tax

Post by 8DonCo Sun Feb 06, 2022 10:33 pm

đường nào cũng dính hết, chính phủ phải gom cho đủ mới có chi phí chớ Very Happy

_________________
Pros and Cons of Living in a State With No Income Tax C7f64202b0357f04c779d805f437c5fc

Pros and Cons of Living in a State With No Income Tax JQrjmZ
8DonCo

8DonCo


Back to top Go down

Pros and Cons of Living in a State With No Income Tax Empty Re: Pros and Cons of Living in a State With No Income Tax

Post by Rễ Sim Sun Feb 06, 2022 11:06 pm


tui cũng sống vài tiểu bang .. tui thấy Texas thuế nhà cao nhưng cũng còn dễ sống hơn nhiều tiểu bang khác... Florida cũng không có thuế income tiểu bang, đồ ăn rẽ, nhà cửa cũng tương đối rẽ... tiểu bang thu nhiều là ở dân du lịch... giống như so với Cali , làm lươnh $15 đồng/giờ chưa thể nòi sống thỏai mái ...

_________________
Mõ nhọn đại ca Rolling Eyes
Rễ Sim

Rễ Sim


Back to top Go down

Pros and Cons of Living in a State With No Income Tax Empty Re: Pros and Cons of Living in a State With No Income Tax

Post by Sponsored content



Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

Permissions in this forum:
You cannot reply to topics in this forum