There are 7 states I believe that have no income tax. Wyoming, South Dakota and Alaska I know don't have a tax. So, with a income tax how do these states create money for state funding? Do these states tax 401K, IRA's or RMD funds that are law to be paid out at required age?

This has always been a interest to me to move to one of these states in retirement. Tell me the pro's and con's of a no income tax state.

Tennessee is a no income tax state. They have a higher sales tax for one thing. Virginia simply taxes everything from cellphone to cars to food. You name it, they tax it. The car tax is an annual thing. Property taxes can be higher in no- income states.

^ you get a bigger pay check I assume. How does your state handle retirement funds 401K, IRA or RMD? Not sure I would retire to Tennessee just because I was born in the west lived in the west I want to die in the west.

Alaska runs state government on oil revenues and earnings from investments.

At this time the state does not tax income, or retirement funds. Some areas have sales taxes and some have property taxes on the local level. But not at the state level

Alaska runs on oil taxes. The con is that spending is outrageous and if the oil revenues ever disappear they will have to switch to an income tax to run this State and the whole State economy will collapse.

Not Arkansas for sure. Income tax, city and county taxes routinely equal 10% on all purchases. Then you are accessed with real estate and personal property taxes which was 1200 for me plus mandatory garbage fees and fire dept fee even in you are out of their reach. This was old tax and spend Bill's state though so I guess we get what we deserve.

Not sure, but I've heard Nevada doesn't have state income tax either thanks to the gambling revenues that are taxed.

States with no income tax make up for it by taxing everything you purchase, including food, etc..

Right! But, there are some states like MN that do both big time!

Washington state has no income tax, but it has a 10% sales tax, a business and occupation tax that taxes on gross receipts not profits, high property taxes, and ridiculously high permit fees for various things.
Almost forgot to mention it has either the highest or second highest gas tax in the nation I think around $0.50, the legislature just passed another $0.19 increase, but the governor wants a new gas tax of an additional $0.53 a gallon.

sounds like no matter where you go,they gonna get you one way or another.

MN's governor wants to pass them all up. He's in office only a few months and he wants to increase our already high gas tax by .20 per gallon. He was in only about a month and he was pushing to legalize marijuana for recreational use. I guess he considers pot smoking his main issue of importance once he became governor.

they all want the pot money,just having trouble figuring out how to get it.

I believe Mi. talked about doing away with income tax a time or two but then realized theyed be taxing everyone instead of just the working person

Virginia has an income tax too.

Nevada has no state income tax, 401k ,retirement. social security are all tax free. There is a state sales tax but its fairly low how every local governments can add sales tax too. Its 7.85% where I live so I just drive 40 miles for big ticket items to get lower sales tax. Same thing goes for gas tax and car registration state levels are fairly low but counties add to it my truck is $50 per year but county adds $50 on top of the state fees. Neighboring county only adds $ 25. Property taxes aren't too bad but we did just elect a bunch of Dems so we'll see what happens

Nh doesn't have an income tax or a sales tax. Property taxes are high to make up for it.

Wyoming, I believe used the mineral rights sales to off set any income tax coal oil gas and other minerals. I loved living in Northern WY. as no income tax and shop in MT with no sales tax-win-win. And living in Wyoming I got to live like a FREE person as in low regulations-open carry-and all the outdoor activities I could handle.

When you say high propert tax, what do people consider high? What dollar per
Thousand are you paying? Like in my township we pay $14.00 per thousand on Rec land.
So if you have a 40 acre parcel with fair market value of $100,000 the taxes would be
$1400.00 a year
So we have that plus incomes taxes plus sales tax at 5.5%
So are state should have surpluses upon surpluses.

$1400 for 2 acres with 900 square ft. House. Is this high enough for you? Virginia.