Choosing a place for your new home might have you up in thoughts. Should you move based on the job market, cost of living, taxes, or lack of taxes? More people are getting interested in no-income-tax states. and you might also. There are both pros and cons of moving to a state with no income tax, and before you make up your mind, you should know both sides. While living here you can save money and put it toward your everyday life or invest for the future, you might have to live in a state with lower quality of life. There are a few states in the USA that don’t have an income tax, and you can find the best one for you and your family. Once you decide on that, you can rely on Verified Movers to match you with the some of the best long distance movers to relocate easily. But, first, let us see what are the good and bad sides of these states.
The pros of moving to a state with no income tax
The good sides of living in a state with no income tax start off with tax savings naturally. Working and not having to pay taxes means you can have more disposable money each month. This is something that high-income earners look forward to the most. You can save the money and move it towards everyday expenses, savings, or investments. Furthermore, it can also mean that you have more disposable income for retirement savings. A pro that some people look forward to is that you can now invest in retirement options, such as 401(k) contributions or IRAs.
With the cost of living in the USA constantly growing, it is a good thing to find states with lower expenses. Some of the no-income states, such as Wyoming and South Dakota offer just that. These two states have an average cost of living that is lower than income tax states. That is a pro that sounds especially appealing to families and retirees. If you are interested in advancing your business, the no-income-tax states have a pro for you as well. States which decided to not have income tax sometimes have a very friendly business environment. This means also lower corporate taxes, which can be a great deal whether you are just starting or a fully developed business. Just to reiterate, the pros of no-income-tax states are:
- more disposable income for everyday things and investments,
- possibility of investing more toward retirement,
- sometimes the lower cost of living,
- friendly business environment.
The cons of moving to a state with no income tax
Even though these states can sound like a dream, and you might think you can save all of your money, you should know about the bad sides to it. These pros can sometimes be a turning point in your decision. Starting off with how these states have higher sales and or property taxes. This is done in order to make up for the lost revenue from not getting income tax. So, while you might think you can save moving here, you will likely have to pay much more for housing. Besides housing prices, the job market can also be a problem. If you are not someone who already has a big business behind them, it can actually be harder to find work in states with no income tax. This is because their job market is smaller, making the competition harder to fight through.
Since no-tax states don’t get as much revenue, it can actually lower the quality of life in their areas. The government might not have enough to invest in everything, and you can see that it affects things like education, healthcare, and public safety. All of which are integral for quality and good life. Not only that, but the infrastructure can also get a hit. The state might struggle to provide funding for government services, but also roads, schools, and hospitals. Since you should remember the pros as well, let us outline them:
- higher sales or property taxes,
- the smaller job market,
- limited government services,
- limited infrastructure.
Which states can you consider if you wish to move?
As of 2022, in the USA there are nine states which don’t have an income tax. They are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. All of these states are different, and you should consider doing research on them to see which state could become your new home. You can choose between states with warmer climates or colder climates, states with plenty of big cities, or states which have large natural spaces.
Alaska
With help of long distance moving companies in Alaska, you can start your life in a state that is considered one of the most beautiful states. This state is widely popular for its glaciers, mountains, and abundant wildlife which you can enjoy on daily basis. But, be warned that it is a cold state. The economy is based on the oil and gas industry, fishing, and tourism.
Florida
Opposite Alaska, life in the State of Florida means warm weather and sandy beaches. It is the most populous state, and also a very popular tourist destination. With many large cities such as Miami, Orlando, and Tampa, the economy in the state is quite diverse. From aerospace, agriculture, and healthcare to tourism and hospitality, you can find it all.
Of course, for a safe relocation to this state which has great tax benefits, simply contact long distance moving companies Florida and enjoy your move.
South Dakota
If you are contemplating contacting long distance movers South Dakota, learning a little about the state can help you make a decision. It is another state with a lower cost of living, which is a great option for families or people looking to save. You can find many industries like healthcare, financial services, agriculture, and manufacturing, with the state heavily relying on retail and hospitality sectors.
Wyoming
Wyoming is one of those states where you can see both pros and cons of moving to a state with no income tax. While it has a lower cost of living, moving there with long distance movers in Wyoming you can also encounter a smaller job market. Still, it is a beautiful state with vast open spaces and Yellowstone National Park.
States with no income tax should definitely be at the top of your list
With some states taxing a big portion of a person’s income, it’s natural to look for states that don’t do that at all. Of course, there are both pros and cons of moving to a state with no income tax, but the pros usually outnumber the cons. Carefully analyze all the aspects of living in states that don’t impose an income tax and pick the one that suits you the most.