Income tax can hinder the creation of wealth. Fortunately, for Americans who want to save on taxes, there are nine states without income tax in which we can choose to reside. These states are listed below in alphabetical order:
When you retire, you probably won't have to move because no income tax usually means tax-free social security benefits, IRA or 401(k) withdrawals, and pension payments. In fact, there are now 41 states that do not tax social security benefits after Missouri and Nebraska decided to stop taxing social security benefits in 2024.
If you become rich, you can also consider states that do not prescribe any estates or inheritances. Fortunately, most states without state income tax also exempt inheritances and inheritances from tax.
High-Paying Jobs Are Usually Found In High-Income States
Unfortunately, most of the highest-paying jobs tend to be concentrated in states with the highest income taxes, such as California, New York, New Jersey and Connecticut. These states are important hubs for industries such as technology, finance and business consulting.
After graduating from college, my only job offer came from New York, where an additional tourist tax of between 3% and 3.87% is charged. Despite my attempts to get a consulting position at companies such as Deloitte, KPMG or Andersen Consulting in Virginia, another state with relatively high income taxes, I could not overcome the initial stage of the interview.
Although the idea of avoiding state income tax may seem attractive, especially for people with high incomes, you should understand that there is no such thing as a free meal. Non-income tax states still need revenue to fund vital services such as infrastructure, education and emergency services. This financing is mainly provided by sales, property and estate taxes.
The Best States Without Income Tax To Work And Get Rich
I decided to divide the nine best states without income tax into three categories, from the worst to the best. Variables include ways to make money, weather, other tax rates, enjoyment, food and culture. The first three variables are more objective than the last.
If you currently live in one of these states without income tax, I would also like to know their advantages and disadvantages.
- Alaska
- Florida
- New Hampshire County, New Hampshire
- Nevada, United States
- South Dakota
- Tennessee
- United States
- Washington, United States
- Wyoming
When you retire, you probably won't have to move because no income tax usually means tax-free social security benefits, IRA or 401(k) withdrawals, and pension payments. In fact, there are now 41 states that do not tax social security benefits after Missouri and Nebraska decided to stop taxing social security benefits in 2024.
If you become rich, you can also consider states that do not prescribe any estates or inheritances. Fortunately, most states without state income tax also exempt inheritances and inheritances from tax.
High-Paying Jobs Are Usually Found In High-Income States
Unfortunately, most of the highest-paying jobs tend to be concentrated in states with the highest income taxes, such as California, New York, New Jersey and Connecticut. These states are important hubs for industries such as technology, finance and business consulting.
After graduating from college, my only job offer came from New York, where an additional tourist tax of between 3% and 3.87% is charged. Despite my attempts to get a consulting position at companies such as Deloitte, KPMG or Andersen Consulting in Virginia, another state with relatively high income taxes, I could not overcome the initial stage of the interview.
Although the idea of avoiding state income tax may seem attractive, especially for people with high incomes, you should understand that there is no such thing as a free meal. Non-income tax states still need revenue to fund vital services such as infrastructure, education and emergency services. This financing is mainly provided by sales, property and estate taxes.
The Best States Without Income Tax To Work And Get Rich
I decided to divide the nine best states without income tax into three categories, from the worst to the best. Variables include ways to make money, weather, other tax rates, enjoyment, food and culture. The first three variables are more objective than the last.
If you currently live in one of these states without income tax, I would also like to know their advantages and disadvantages. 
