States Without Income Tax: Is There A Benefit To Moving?

Many people decide to move to states without income tax in hopes of saving money and having a cheaper cost of living. But is it really worth it?

There are several US states without income tax including: Texas Tennessee Florida Washington Nevada

States Without Income Tax

How to States Make Money

Income tax is the primary way any state earns income. Without state income taxes, though, how do these states make money?  Higher property taxes Higher random fees (speeding tickets, car registration etc) HIgher Sales tax!

Do those other costs really add up?

This depends. In order for property, sales tax, and other fees to add up to your income tax, you would have to really be spending a lot! The other question is: do you really want to live in the states without income tax?

Terrain Map

Lifestyle Decision

Where you live is not only a financial decision, but also a lifestyle decision. You may pay income tax in a state you love, but have the life you want!


If making a purely financial decision, then a state without income tax for high income earners can save you a lot of money. BUT: life is short! don't sacrifice happiness for the sake of saving money either!

See more info at The Female Professional!