Mike 350Z

Simple question...Is it really all that advantageous to live in a state that doesn't have a state income tax, if you're looking to save money? It looks like these are the states in this category:

* Alaska
* Florida
* Nevada
* South Dakota
* Texas
* Washington
* Wyoming

I know nothing is free, so do they get you in other areas like property tax, sales tax, higher insurance costs?, bad roads/schools? Any thoughts?

Pete2010

You missed New Hampshire

In the New England area, many people try to live in NH but work in Mass. Yes, they save money by not having to pay state income tax, but property taxes there are through the roof (as is the case with many other no income tax states). For example where I live (in a large expensive suburb outside of Boston), my property taxes are almost 1/2 as much as a friend in NH who lives near the MA border (plus his house is about 200k less than mine) For example - he pays $27 per assess thousand, I pay $10. So for a 400k home (average for his area), he pays over 10k a year in property tax.

They'll get you one way or another...

jupitersolo

Well a state like Florida rely on higher taxes else where, but that mostly having visitors paying them. They have unreal hotel and park taxes I also think high restaurant taxes as well.

Alaska doesn't, because of the oil, Texas might be the same.

#1 STUNNA

our sales tax is 7% and I worked in a restaurant for 7.5yrs and never heard anything about restaurant tax. I think there's a little alcohol surcharge on some alchy drinks but that's it. gas prices our below the national average too...

Pete2010

Maybe a tax on the food that diff than normal? I know that Texas has a 15% hotel tax (found that out while traveling there last week). But I think they have lower property taxes as well.

cabanalane

People that lives in "no tax" states often choose to live there because of ALL other reasons other than "the advantage of no tax."

It could be job, family, weather, etc. Most have said, they do "pay for it" in the forms of higher property tax, etc, etc. Keep in mind wages are also adjusted based on where you live too. So in general, quality of life does not change.

Unless you got some kind of a set up, like retired, then maybe certain situations may be beneficial. For 99% of us working with family, there is "no advantage."