Is a state with no income tax better or worse?

Bankrate ^ | May 27, 2019 | Adrian D. Garcia

[null and void]

"Hiding between the 'A' and the 'T'"................

The boot-heel of Missouri? Between Arkansas and Tennessee?

[mowowie]

Yea it sucks here.
Be nice to be renting a nice place in NH along with a good job there...

I always find it amazing crossing the state line on 95 or 93 from MA into NH.
you instantly go from potholes, bad pavement, knee high grass, litter, rusting and decaying bridges, bent damaged guardrails into.....something like a completely different world.
Nicely mowed grass, no litter, perfectly paved highway, wonderful modern rust free bridges and guardrails....
All from a state economy with no income or sales tax.
It’s amazing...

[Red Badger]

It was her snide way of telling us not to end a sentence with a preposition.....that was something up with which she would not put....................

[CMAC51]

My state has: Low income tax Low property tax NO sales tax I prefer no sales tax...

So enlighten me, what state and how does its overall tax rate compare to Texas and Florida.

Texas has high property taxes and sales tax of 8.25% and is one of the lower overall tax rate states in the Country. By California and New York standards, the lower middle income families live in million dollar homes, but they only pay $150,000 - $180,000 for them. Gas is currently $2.10 a gallon or less, and natural gas is just as cheap compared to the rest of the nation.

Higher tax states structure their taxes to hide their effect. You are more aware of taxes you pay straight from your wallet than ones taken from your paycheck or encased in your house payment. The only real measure of the cost of taxation is the overall tax rate and the cost of living.

[null and void]

Post 25, a question for you...

[null and void]

Post 30...

[suthener]

“I know of no place without a property tax. “

There is no private ownership of property in the U.S. I can’t figure out why people don’t realize this (not directed at you).

[Kickass Conservative]

If you are Working, yes.

If you are Retired, no.

[CMAC51]

I paid $3k+ in California taxes after the feds got theirs. If I move to Florida I save it but it will end up somewhere in Fla. Either sales or property.

You are making an unsupported in general statement to make yourself feel better. What is the overall tax rate and cost of living in California vs. Florida. You are getting creamed on taxes from every direction in California. Your individual overall tax burden is 9.47% while in Florida it is 6.56%. When you factor in corporate taxes, which are what drive your high cost of living, it gets even worse.

https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494/

[woodbutcher1963]

Thanks for shopping in NH. Now please go home :)

[ro_dreaming]

No need to repair roads constantly from the salting, freezing, cracking, expanding, plowing... it all takes a toll. Larger populations mean large Police Force, Fire Brigades, 911 infrastructure. Larger schools. It’s all related.

Our roads in Houston (either the 3rd largest metro area, or the 4th largest) are constantly under construction/repair/tear away and re-build. We have more cars, and the extreme heat and humidity, not to mention the floods and runaway barges (I-10 in Baytown) makes the roads and the underlying ground susceptible to washing away.

[CMAC51]

Texas has no state income tax. But its property taxes are very high. If states don’t get the revenue one way, they get it another. Which is better? I have no clue. Other factors may be more important. But property taxes aren’t tied to income, while income taxes are. I think liking other lifestyle-related things are more important than taxes, but that’s just me.

Texas has an average overall property tax of 4%-5%. California has 3%-5%. However, a $250,000 home in a Texas major urban/suburban area cost $1,000,000-$1,500,000 in California. So who is really paying the higher property tax? The difference will sure pay for a lot of lifestyle.

One way to insure you get creamed on taxes is to ignore the real economics of them.

[woodbutcher1963]

I live in NH. I am glad we do not have an income tax.
However, a sales tax is more fair because then everyone pays, not just people who get a W2.

I personally pay around $8400 in property taxes on my residence. There are towns in NH that have a much lower tax rate. Tuftonboro, Moultonboro, Sunapee, Wolfeboro. These are all towns surrounding the big lakes where the water front houses pay the majority of the taxes. IF you do not own a lakefront house in these towns, the taxes are under $4000. When you combine this with no sales and income taxes, it makes these townships literally the lowest tax burden places in the USA.

[Chuckster]

Alaska. No property,sales or income tax at the state level.

[woodbutcher1963]

NH also has a state assembly where you earn the incredibly high annual wage of $1/per year + mileage. How much do the state reps in Mass make? How much do they make in retirement? Ask Billy Bulger.

That is the problem of all the liberal states. NY, NJ, IL, MA, CT, RI all have these retired state employees collecting pensions for 30+ years in retirement. Then they all move south to SC & Fl.

[olesigh]

YOU ARE INCORRECT ABOUT CALIFORNIA PROPERTY TAX.

Prop 13 limits the property tax at 1% of purchase value since 1978. If you have been in your house since 1977 it is 1% of the value in 77. If the house was 50,000. Your tax is 500. If you buy a 500,000 house now, your tax would be 5,000 per year.

Cities are allowed to raise the taxes a small amount over time. After 42 years most tax rates around the state are about 1.17% A small increase from 1% in 1978.

The democrats are constantly trying to get around prop 13, but they have been beaten back. The current attempt is to raise commercial property taxes. But one of the positives in CAL is the low rate of property taxes and if you stay in your home in the long term you’re getting a real break over other states and people who move around frequently.

The state also allows seniors to move within the same county and transfer their old tax to the new property (Prop 60). 7 counties allow you to transfer from other counties (prop 90).

[CMAC51]

Property tax comparisons only work if you include the assessed value of equivalent homes. If the equivalent home in one states property tax works out to 5% of a $250,000 assessment and in another state it is 3% of a $600,000 assessment, who is paying more in taxes.

Watch a some episodes of Fixer Upper and Property Brothers. You will see examples of equivalent homes and what the cost of acquisition is in one area vs. another. On the west coast, in the north east and the rust belt, home prices are significantly higher for equivalent homes.

[BBB333]

Wow! Lot’s of replies.

Montana, I live north of YNP by about 70 or so miles.

We rate #39 for state and local tax burden.

My property tax is less than 2/3rds of 1% of actual value (i.e. $100,000 home would pay less than $650 per year).

Top income tax rate is 6.9%...

True there ARE some local resort taxes (Big Sky and West Yellowstone come to mind) very few.

The state has over $1,000,000,000 (yes, billion) in our coal tax trust fund which cannot be spent without a 75% vote of both the house and senate and signed by the governor. How’s your state doing?

It’s a nice place!

[Daffynition]

I lived in Madison, NH and payed about your stated amount in property tax, 20 years ago...now I’m northern Vermont and pay 1/4 that in property tax for ten times the acreage....and still have *my* mountain, a view out the back deck. The best of both worlds, I think.

https://images16.fotki.com/v220/photos/9/127099/14534698/ISsboxih8gwn6l-vi.jpg

https://images14.fotki.com/v1665/photos/9/127099/14534698/P1000950-vi.jpg

We can also *double-dip, b/c being only 6 miles to NH, what little shopping I do,I can do in NH, for the tax savings.

FWIW, we have Bernie and you don’t neener neener! :)

Carry on.

[CMAC51]

I read the whole article. It compared individual no tax states. Still the author is in favor of the income tax suggesting the rich don’t pay their fair share. Crap. The income tax is 100 years old. It’s the cause of all our present day problems. Granted higher income earners spend a lower percentage of their incomes on necessities but whose business is that?

Every penny paid in income taxes, regardless of by who, comes from the pocket of the consumer of goods and services. Making the rich pay a higher rate does not save the poor money, they just end up paying more for the goods and services they rely on. It is one of the reasons that high tax states are also high cost of living states.