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Tax Haven State Lines
Nobody enjoys paying taxes. We all try to reduce our tax burden. Here’s a way you might not have considered before. There are many kinds of tax in the U.S., and many are unavoidable, like gas tax, but the two that affect your life the most are income tax and sales tax.
Now you can’t avoid paying Federal income tax, but not all state income tax is created equal, and there are 9 states that charge 0% income tax:
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
Be aware this varies a little per state. For example, New Hampshire does charge income tax on non-wage income like dividends. Other states may have exclusions too. Do your research.
In addition, 5 states charge no sales tax:
Alaska, Delaware, Montana, New Hampshire and Oregon.
So clearly just moving to any state in either of these lists will save you handing over a bunch of cash to the government. I also see your intelligent little eyes spotting that Alaska and New Hampshire are on both lists. Aha! You think. Relocate to those states and save a fortune. Not so fast. New Hampshire is the 9th most expensive state out of 50 for cost of living, and Alaska is 5th. Also, Alaska is cold, and New Hampshire is crowded!