Sunday, July 16, 2006

State income tax rates

If you are moving or considering where you might want to move to or comparing job offers from different states, you might want to check out this table of State Individual Income Taxes.

Some states have no state income tax:

  • Alaska
  • Florida
  • Nevada
  • New Hampshire (but they tax dividends and interest income)
  • South Dakota
  • Tennessee (but they tax dividends and interest income)
  • Texas
  • Washington
  • Wyoming

Alas, a free lunch isn't always free, so you can expect higher sales tax being used to compensate for the lack of an income tax.

Also keep in mind that if you have a pile of cash in tax-free state minicipal money market funds, you may have to shift funds or maybe there won't be a state tax free fund to shift to in your new state, or maybe you get to shift to a tax-free fund when previously you had no tax-free fund available.

-- Jack Krupansky


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