We’ve posted about the tax burden in each state and recently we revealed which U.S. states lack a sales tax. Now we’re looking at those few states without an income tax. The folks at smartasset put together a nice list of those states and how they generate their revenue. One thing’s for certain….No matter where you go, the government will have to be fed.
“While avoiding state income taxes may seem appealing, there’s often a catch. Some states tax consumers more heavily when they pay for things like groceries and gas. Others – like Wyoming and Alaska – levy high taxes on the companies that extract natural resources.”
The states without an income tax are:
- South Dakota
- New Hampshire**
* Tennessee doesn’t have a personal income tax however it does tax some dividends and interest.
** New Hampshire collects taxes on dividends and interest but doesn’t assess personal income taxes.