MarketWatch ran an article on the states that are worst for the common man: “10 states with the worst taxes for average Americans.”
The journalist ignored these horrendous tax states: California and New York.
It targeted these states as the worst, beginning at the top.
What do they have in common? No state income tax.
Also on the list: Tennessee (#7). It has no state income tax on wages.
Entrepreneurs and successful people want to live in states with no income tax.
Of course, the best state is New Hampshire: no income tax and no sales tax. They get you with property tax, especially lakefront property. Live inland.
Close behind are Wyoming, Alaska, and Nevada: no income tax.
Ideal: live on the border of Wyoming and Montana. There is no sales tax in Montana. Ditto for Washington. Live in Vancouver. There is no sales tax in Oregon (Portland). Pay cash in Montana and Oregon.
And then there is the true anomaly: Texarkana, Arkansas. You don’t pay income tax as an Arkansas resident. You also avoid all state taxes in Texas. Just don’t move out of the city limits, deeper into Arkansas.
Here is the assessment of the nonprofit Tax Foundation. The best states, as of 2011 (best on the bottom):
Which are the worst (higher on the list)?