State Income Tax

State income tax is an income tax in the United States that is levied by each individual state. Some states choose to impose no income tax.

With the advance of technology, fax machines and the internet many Americans are more mobile than ever before. They can operate their money making businesses from the beach or the mountains or anywhere inbetween.

One thing they all have in common is the constant search to lower their tax burden. One important component of the total tax burden is the payment to state income taxes. So if you are considering moving, taxes and state income taxes should be something for you to consider. Surprisingly, there are seven states that levy no state income tax. The seven states with no state income tax are: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

Paying federal taxes is the biggest burden but coming up fast are the growing state income taxes. If you are considering relocating to a new state, your overall tax liability should be something for you to consider. Specifically, there are a number of states with no income tax. Of course, depending on your earnings, living in a state with no income taxes can potentially save you hundreds if not thousands of dollars every year at tax time.

Many of the no income tax states make up the difference by collecting taxes in other ways. Each state is somewhat different; some have high relative state sales taxes or higher property taxes.

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