What States do not impose Personal Income Taxes in 2009?
In the event Taxpayers are considering relocating to a new State, one of the most important consideration is whether or not that State imposes Personal Income Taxes.
Every Taxpayer is averse to paying individual income taxes. Already, taxpayers are burdened with a very high federal income taxes and FICA taxes. Thus, State income taxes are clearly an additional burden that taxpayers would like to avoid if possible.
The avoidance of state income tax can potentially yield savings considerable savings to taxpayers amounting to thousands of dollars depending on the taxpayers level of income. Currently, in the US there are 7 States that do not impose "Personal Income Tax." These are listed as follows:
Both Tennessee and New Hampshire do not collect a tax on their residents earned income, but they impose a tax on their resident taxpayers dividend income. Thus, Tennessee nor New Hampshire are technically states with no income tax.