Is it better to live in a state with no income tax? It’s a great question to ask, especially when considering how much of our paycheck is already set aside for Uncle Sam. Seven U.S. states forgo individual income taxes as of 2018: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Residents of New Hampshire and Tennessee are also spared from handing over an extra chunk of their paycheck, though they do pay tax on dividends and income from investments. The main benefit of eliminating the individual income tax, proponents say, is that states with no income tax on residents become beacons for growth. They’re better at creating jobs and keeping a core of young, educated workers from moving to other states. The American Legislative Exchange Council reports that over the past decade the nine states without a personal income tax have consistently outperformed the nine states with the highest taxes on personal income in job creation, population growth and even … [Read more...] about Is a state with no income tax — like Washington — better or worse?
States with lowest income tax
Minnesota Senate Republicans are proposing a reduction in Minnesota's lowest income tax rate, as part of a proposal they unveiled Tuesday they say is intended to prevent any tax increase on 99.8 percent of Minnesotans. The Senate GOP released its tax plan a day after the House passed its own tax cut plan on Monday. Senate Republicans want to use $176 million in money from the state's projected budgeted surplus to reduce the lowest-tier income tax rate from 5.35 percent to 5.1 percent beginning this year. "The current system is abusive and punishes hard work," said Sen. Roger Chamberlain, R-Lino Lakes, the Taxes Committee chairman. Unless the Legislature responds to the federal tax overhaul passed last year and signed by President Donald Trump, 300,000 Minnesotans could face tax increases, while the state tax code would be come a confusing maze for both taxpayers and the Department of Revenue. Lawmakers and DFL Gov. Mark Dayton have until the Legislature's May 21 adjournment deadline to … [Read more...] about Minnesota Senate Republicans propose income tax reduction
More than 2 million Minnesotans would get a state income tax cut under a proposal state House Republicans are pushing, while about 179,000 filers in the state would see their taxes go up. Republicans in the state House want to drop the state’s second-lowest income tax rate from 7.05 percent to 6.75 percent by tax year 2020. But, in its drive to simplify a tax code that was thrown into disarray by last year’s federal tax overhaul, the GOP proposal would kill some deductions at the state level that were eliminated at the federal level — like union dues, business expenses that are not reimbursed by your employer, moving expenses for work and others. In recent decades, any move to raise state taxes has provoked universal opposition from Republicans in the Legislature. But the need to conform Minnesota’s system to the new federal law has left GOP lawmakers needing to collaborate with DFL Gov. Mark Dayton in order to avoid even more widespread tax increases on … [Read more...] about House GOP wants income tax cut for 2.1 million Minnesotans, but smaller number would see hikes
Tanza Loudenback, provided by Published 12:06 pm, Sunday, April 8, 2018 REUTERS/Shannon Stapleton Taxes are due by April 17. Most Americans should file a state income tax return in addition to a federal income tax return. State income tax rates range from zero to 13.3%, depending on which state you live in and your income. Tax day is April 17 this year, but the Internal Revenue Service began accepting tax returns on January 29. Most Americans file returns for both state income tax and federal income tax. You can do that through H&R Block or TurboTax — both of which offer free tax filing for eligible taxpayers — or an accountant. Nearly everyone is subject to federal income taxes. How much you pay depends on how much you earn, also known as your tax bracket. Though President Donald Trump signed the Republican tax bill into law at the end of December, new federal tax brackets will affect only income earned starting January 1, 2018. You'll see those … [Read more...] about What Americans pay in state income taxes, ranked from highest to lowest
Share This Story! Let friends in your social network know what you are reading about Facebook Email Twitter Google+ LinkedIn Pinterest Tax policy: States with the highest and lowest taxes While all Americans are subject to the same federal tax rates, the taxes they pay to their state and local governments varies depending on where they live. Here's a review of the portion of income that goes to state and local governments taxes per capita. Sent! A link has been sent to your friend's email address. Posted! A link has been posted to your Facebook feed. 4 Join the Conversation To find out more about Facebook commenting please read the Conversation Guidelines and FAQs Samuel Stebbins, 24/7 Wall Street Published 6:00 a.m. PT April 6, 2018 CLOSE When you retire, you don't want to pinch pennies. These are the 10 least tax-friendly states for retirees, according to GOBankingRates. USA TODAY CONNECT TWEET LINKEDIN 4 … [Read more...] about Tax policy: States with the highest and lowest taxes