(NewsNation) — Tax season is underway, and chances are you’ll be shocked to see how a lot is taken out in state income tax while you’re submitting your 2024 returns. 9 states do not have state earnings tax. Which of them are they?
Here is a listing of states that shouldn’t have state earnings tax:
- Alaska
- Florida
- New Hampshire
- Nevada
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
New Hampshire makes the listing however is barely completely different from the others on the listing because the Granite State taxes curiosity and dividend earnings.
Though these states don’t take taxes out of earned earnings, that doesn’t imply the price of residing is decrease. In reality, states might make up for the no earnings tax in different methods, equivalent to a better gross sales tax. Tennessee (9.56%) and Washington (9.43%) have the second and fourth highest mixed state and native gross sales tax charges, in accordance with the Tax Foundation.
One added bonuses for taxpayers in most states with out earnings tax, is that there isn’t a must file a return in that state. The identical goes for New Hampshire residents, until their curiosity and dividend earnings is bigger than $2,400 ($4,800 for taxpayers submitting collectively).
