Tired of paying taxes? If your tax payments gave you the tax season blues, you might consider relocating to a state with no income tax. Keep in mind that we’re just talking about state taxes, you’ll still need to pay the IRS for your federal taxes.

Seven states don’t tax income at all, but residents of those states still pay other local taxes so the states can make up for having no income tax revenue. Plus, some states collect healthy tax revenue from tourism and business interests, so in many cases, the revenue isn’t being paid by residents.

Here are the seven states that don’t levy an income tax with a look at how the states make up that revenue.

1. Alaska

Alaska is unusual because it shifts its largest tax burdens to oil and gas companies, so residents pay less overall.

2. Florida

Florida’s tourism, and its higher-than-average sales tax at 6 percent, makes up for the state’s lack of income tax

3. Nevada

Nevada also receives a large chunk of change from tourism – Las Vegas – and benefits from a 6.9 percent sales tax.

4. South Dakota

South Dakota gets its largest revenue from sales tax at a rate of 4.5 percent, but local municipalities can add their own sales taxes until it maxes out at 6.5 percent.

5. Texas

Texas offsets its lack of income tax with revenue from oil and natural gas production. The state is also known for its high property taxes.

6. Washington

Nearly half of Washington state’s tax revenue comes from a 6.5 percent sales tax, plus the highest excise taxes on alcohol and gasoline in the country.

7. Wyoming

Wyoming offsets its income tax-free status with revenue from natural resources.

If you have any questions or if you would like more information, contact Fred Schutz at (856) 722-5300 ext. 201 or Dave Gill at ext. 210.

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