For those wanting to keep as much of their income as possible, our tax attorneys have outlined all of the states that do not collect state taxes..
States Without Income Tax
Alaska: Known as one of the tax-friendliest places to live in America, Alaskan residents enjoy not only the absence of a state income tax, but also no levied sales tax!
Florida: One of the most popular retirement destinations in part due to the gentle climate, the state of Florida offers no state income tax. People who choose to retire in Florida enjoy not having to share any retirement income with the federal government.
Nevada: Not only does Nevada have no state income tax, it also has a low sales tax at 5.5 percent. Residents also enjoy property tax rates that are far below the national average, making it a popular state for property owners.
South Dakota: No state income tax and a low sales tax of 4.5 percent are contributing factors to South Dakota having one of the lowest costs of living in the United States.
Texas: A popular destination for retirees who don’t want to share their retirement income with the government, exemptions on property taxes are available to all state residents, with additional perks offered to individuals over the age of 65.
Washington: Although Washington boasts higher property tax bills due to the higher-than-average property values, residents also enjoy that coveted absence of a state income tax.
Wyoming: Not only does Wyoming have no state income tax, their residents are privy to one of the lowest state and local tax levies in the nation.
Tennessee: Finally, Tennessee will be the eighth state to enjoy the absence of state taxes. By 2021, Tennessee will join the ranks of state-tax free places to live. The Hall income tax rate that is currently low at 3 percent is slated to decrease to 2 percent in 2019, 1 percent in 2020, and as of January, 2021, will be down to zero.
While state taxes can be a significant factor to consider for many, there are certain perks and quality of living issues that some weigh as more important. Some may choose to retire to a state with no state taxes, while others may consider climate issues, location, or access to medical care of more importance when deciding where to move or retire. The absence of state taxes means that people can keep all wage and retirement income without having to share it with the government, as well as maintaining all of their dividend and interest income. It will be interesting to see if, after Tennessee joins the ranks of states with no taxes on wage income, more states will follow suit in the coming years.… Read More
The most recent list of California’s top 500 tax delinquents included some well-known celebrities. Some of these celebrities have had tax problems in the past, some of them are new to the list. The following five celebrities have all found their names on the latest list for 2018.
There was a time when Chris Tucker was the highest paid actor in Hollywood. He is well known for his roles in Friday as well as the Rush Hour film series. In addition to acting, in the 1990s he frequently performed at Def Comedy Jam as a stand-up comedian. In 2014, Chris Tucker had a $2.5 million lien against him in Georgia which he blamed on “poor accounting and business management”. He settled that tax debt, but is now listed on the latest list of California’s top 500 tax delinquents. It is reported that he now owes the state of California more than $1.2 million in unpaid taxes.
Tori Spelling is an actress, reality TV personality, author, wife, and mother of 5 children. In her first major TV role, she played Donna Martin in the American teen drama, Beverly Hills, 90210. In 2009 she released her autobiography, Stori Telling, which made the New York Times Best Seller List. Tori Spelling, along with her husband, Dean McDermott, have had a history of financial problems in the past several years. They currently owe the state of California $282,655 in unpaid personal tax.
Born Alvin Nathaniel Joiner, he is most widely known by his stage name of Xzibit. Xzibit is a television host, actor, and rapper. He raps almost entirely about his own personal experiences, drawing on many tragic events in his life. He got his start working with rappers like Dr. Dre, Eminem, and Snoop Dog. As an actor, he is well known for his role in Empire, an American drama series. Xzibit made the most recent list of top 500 tax delinquents in the state of California. It is reported that he has unpaid taxes amounting to $231,579.
The American actor and director, Nick Cassavetes, got his start as an actor when as a child he appeared in the films Husbands, and A Woman Under the Influence; both of these films were directed by his father, John Cassavetes. He eventually went on to appear in a number of other films, including Backstreet Dreams, The Astronaut’s Wife, Face/Off, and The Wraith. He’s also directed many films, including The Notebook, She’s So Lovely, Unhook the Stars, and My Sister’s Keeper, among others. Nick Cassavetes made the 2018 list of Top 500 tax delinquents, owing California $252.950 in back taxes.
Macy Gray, born Natalie Renee McIntyre, is a singer-songwriter, actress, musician, and record producer. She has been nominated for five Grammy Awards, winning one. Gray’s debut album became a multi-platinum album, and she’s probably best known for the single “I Try” which was on this album. In addition to the six studio albums she’s released, Macy Gray … Read More
Not every upgrade of a municipality’s infrastructure is genuinely newsworthy. In some ways, the recent announcement by the City of San Francisco that it has streamlined and improved its self service tax payment portal falls into this category of announcement. In ordinary circumstances, this would hardly be news at all.
When one considers the pride with which this news is conveyed by by the city, however, an interesting backstory suggests itself. Their description of this new tax payment system speaks about how citizens can go online, search for various meta-terms which will call up all of their tax payment history and billing, and then generate a single standardized form which will permit them to easily pay their taxes with it.
Conversely, the new system also allows people to quickly and easily make their tax payments online. As an added bonus, the system also automatically generates friendly reminders about when tax payments are due and provides for various other forms of consciousness raising that will, as they say, help reduce late payments and other forms of mistakes made by the general public, such as perhaps paying the right sum towards the wrong account.
While all of these things are admirable, one large question pops up when one thinks about the whole idea that San Francisco, High Priestess of the high-tech world, is just now setting up a system capable of doing these things. Far from being revolutionary, this is actually a case of someone playing catch-up to the rest of the world– which has been utilizing similar technologies for years. What sort of system have Bay Area taxpayers been suffering under prior to this new rollout?
San Francisco has apparently been working on updating their previous system since April of 2016 and serendipitously managed to have it up and running in time for the unexpected flood of business that came at the end of 2017, when the President’s new tax bill changed the way in which local tax payments were treated for federal tax purposes. Given the drastic decrease in the deductibility of these payments for the 2018 calendar year and beyond, many Bay Area residents rushed to pay their taxes before the close of business on December 31st, 2017 to take advantage of one last writeoff before the new tax regime became law.
To its credit, the new system, which replaced and unified four older platforms, performed extremely well. It handled an eight-fold surge in self service tax payments compared to the usual sedate pace of payments at the end of a calendar year. The chaos and recrimination that would have ensued in the event of any glitches cropping up would have been ruinous, so the long horizon which the city employed on its deployment schedule has proven the wisdom of the idea that a patient approach on such a key part of the city’s basic IT infrastructure is better than rushing a buggy system into action prematurely.
In that regard, the IT planners who designed and built the new … Read More