Do states with no income tax actually save me money overall?
Not always — states without an income tax, such as Texas, Florida, Tennessee, Washington, and Nevada, still need revenue and typically make it up through higher property taxes, sales taxes, or other fees. Texas, for example, has some of the highest effective property-tax rates in the country. Washington has a high sales tax and levies a capital-gains tax on large gains. Your actual savings depend on your income level, whether you own or rent, and how much you spend. A high earner who rents may benefit greatly, while a modest earner who owns a pricey home might not. Compare total tax burden, not just the income-tax line, using state tax-burden studies from sources like the Tax Foundation before assuming a move saves money.
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