States with no state income tax in the US are a factor many people consider when choosing where to immigrate, as it affects take-home income. Understanding this helps with better financial planning. This article introduces the states with no state income tax in the US and points to note.
States with no state income tax in the US: the concept
In the US, besides federal income tax, many states also collect a state income tax. However, some states do not collect personal income tax, meaning workers there keep this portion of their income.
This is a financially attractive point: at the same salary level, someone in a state with no income tax may have higher take-home income than in a state with this tax. So it is a factor worth considering.
States with no income tax
Some well-known states do not collect personal income tax, including states popular with Vietnamese people such as Texas and Florida. This is an advantage that makes these states financially attractive to immigrants.
However, the list and specific regulations may change, so check current information. Having no income tax is an advantage, but it is only one part of the overall financial picture.
Looking at the overall tax picture
Note that states with no income tax may have other taxes or fees that are higher to compensate, such as sales tax or property tax. So look at the overall cost picture, not just one type of tax.
You should refer to information on state governments and official sources to check the state’s tax regulations, combined with other costs when choosing where to immigrate.
Summary
States with no state income tax in the US (such as Texas and Florida) help increase take-home income, a financially attractive factor. However, these states may have other taxes and fees that are higher to compensate. You should look at the overall tax and cost picture and check current regulations when choosing where to immigrate.
═══════════════════════════════════════════════════════════════════
References
- Internal Revenue Service — State Government Websites: https://www.irs.gov/
- USA.gov — State governments: https://www.usa.gov/state-governments
Read more: Overview of the EB-3 visa for US immigration · The cheapest states to buy a house in the US for immigrating
