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Review Of The 7 States Without State Income Tax

Sunday, March 24, 2013 - 5:36 AM
In my opinion, savers will pay less in taxes in states with no state income tax. Sales and property taxes may be higher in these states, but these taxes can be minimized by spending less on non-essential things.

This USA Today article has an interesting review of the 7 U.S. states with no state income tax. It shows how these states offset the lack of state income tax with other taxes and reduced spending.
4
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,754
1. Sunday, March 24, 2013 - 7:16 AM
The Tax Foundation found that homeowners in these states paid the most in property taxes compared to home value.  The percentages represent the percentage of median home value that homeowners pay in property taxes.

1. New Jersey - 1.89%
2. New Hampshire - 1.86%
3. Texas - 1.81%
4. Wisconsin - 1.76%
5. Nebraska - 1.70%
6. Illinois - 1.73%
7. Connecticut - 1.63%
8. Michigan - 1.62%
9. Vermont - 1.59%
10. North Dakota - 1.42%

Best and Worst States for Property Taxes - The 10 States With the Highest and Lowest Property Taxes

My last property tax bill in Texas amounted to 2.18% of the 'appraised' home value. Local school taxes were responsible for 52% of the tax due.  Zillow data as of March 13, 2013 indicates the median home sales price in my zip code has gone up 17.2% since a year ago. This is primarily due to an oil boom in this area of Texas.  I'm sure the tax appraisal district will reappraise the homes shortly and as a result taxes will increase accordingly.
Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes. — Benjamin Franklin, in a letter to Jean-Baptiste Leroy, 1789
2
ShorebreakShorebreak2,381 posts since
Apr 6, 2010
Rep Points: 12,717
2. Sunday, March 24, 2013 - 1:53 PM
Let's face it, the town/city has one goal in mind: get more tax income from homeowners.  They can either achieve that from higher tax rate or property assessment or both.  That is exactly what they are doing.  Our town in Mass has a tax rate of 1.52%.  But our properties are overly-assessed to ensure the nice income for our town.  They will get you in the water/sewer cost as well. 
1
51hh51hh1,462 posts since
Jan 16, 2010
Rep Points: 6,352
3. Sunday, March 24, 2013 - 4:32 PM
Meanwhile...

10 Most Tax-Friendly States for Retirees

10 Most Tax-Friendly States for Retirees-Kiplinger
5
ShorebreakShorebreak2,381 posts since
Apr 6, 2010
Rep Points: 12,717
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