Question

Which states, in the United States, do not have a state income tax? If you do not currently live in a state without income tax, would a move to such a state be justified by the absence of the tax? Please, explain.

Answer 1

• In the United States as of 2020, seven states—Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming—do not have a state income tax.
• Also, two other states, New Hampshire and Tennessee don't tax wages.
• A move to such a state can be justified by the absence of the tax as living in a state that doesn't tax income can be a major advantage, especially to those earning high income.
• Most of the states force high earners to pay high taxes but, states without personal income tax do not tax their earnings at all.
• This helps high earners to save much more of their money and invest it for their future.