If you are looking at a higher tax bill this year, it may be linked to the state in which you reside. If paying no corporate or individual income taxes sounds appealing to you, then you may want to consider packing up your things, and heading to one of these “low-tax” states. Places like Wyoming, Montana and Washington are among a handful of spots where residents enjoy lower taxes.
Interestingly enough, the states that increase state revenue without charging residents individual income taxes, corporate taxes, property taxes, sales taxes or unemployment insurance taxes, are some of the most advantageous states for tax savings in the United States. Such states typically lure in new businesses to stimulate economic growth in their region.
The places with soaring taxes usually have difficulty keeping residents and businesses. Some studies show states that have the highest taxes, were also among the states that had the largest resident and business departure rates.
Regardless of where you live, it is important to pay your tax bill with the Internal Revenue Service. If you owe money to the IRS in back taxes, do not prolong your debt. There are many fines and penalties that come along with IRS debt, so getting help sooner rather than later can only benefit you. Meet with a tax relief attorney today, like the seasoned professionals at U.S. Tax Shield who have already helped thousands of clients with their tax debt.
Check out these low-tax states . . .
This western state has one of the lowest tax rates in the country. If you are a high earner, or a business seeking relocation, this may be the state for you. Wyoming does not tax their residents on individual income, or impose corporate taxes. The states sale tax is under 5 percent (which is low nationally by comparison) and it has the lowest beer tax in the land. Alternatively, Wyoming has one of the highest property taxes in the country and the average homeowner typically pays more than $2,000 in taxes each year.
Similar to Wyoming, South Dakota does not impose individual or corporate income tax, and it has one of the lowest sales-tax rates in the United States. However, South Dakota has one of the worst sales tax rates in the country because of levies on sales tax for business goods and services.
Like the aforementioned states, Nevada does not have individual or corporate income tax, which makes it one of most inexpensive places to live in the U.S. With Las Vegas at the forefront, Nevada has one of the largest sales tax rates in the United States at almost 7 percent. Property taxes are moderate to high at an average of over $1,200 annually.
The sales tax in Alaska remains one of the best in the U.S. for consumers. On the flip side, watch out for the state’s high beer taxes and moderate property and corporate taxes.
If you are looking to escape to warm, white-sandy beaches, and save money while doing it, then Florida is the place for you. Here, residents have a low maximum unemployment tax rate at a little more than 5 percent, and they do not pay individual income taxes. If you are a business owner, be aware of Florida’s required alternative minimum tax.
Contact a Specialist for the Answer
If you have further questions about taxes, or would like to learn how you could save money while paying off your back taxes, contact a tax resolution lawyer today. The “back-tax” specialists at U.S. Tax Shield are here to help you.