How Much Do Income Tax Free States Net Taxpayers?

Those states that are free from state income tax may not in fact benefit those taxpayers anymore than those states that charge state income taxes. Aside from residents of Massachusetts, which have the highest individual state income tax rate, residents of income tax free states still pay property and/or sales taxes as a way to compensate the state’s coffers in order to meet their expenditures. A true test of which resident fairs best would involve a more comprehensive look at the rates by state for all taxes payable from all sources.

Comparing Income Tax and Free Income Tax States

The true tax rate for an individual varies from state-to-state. Finding comparison information can be done through a Google or other search engines. You may also consider the National Taxpayers Alliance or organizations similar to this that conducts analysis of taxation between different states. These will give you some idea of what is being done on a national and state level.

Performing a search provides the best way to obtain some information about the relative tax benefits/burdens by state. The information provided is a snapshot of what states offer their residents.


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