I was looking through some cities on Bestplaces.net and I noticed that in many Southern states there is a 0% income tax. Missouri, one state I'm interested in, has a brutal 7% income tax. What is up with that?
2007-12-27 13:02:17 · 8 answers · asked by Defunct 5 in Business & Finance ➔ Taxes ➔ United States
My sample cities happened to come from Tennessee, Texas, and Florida.
2007-12-27 13:17:23 · update #1
Where do you get the idea that Southern states don't have an income tax? The following states have no income tax at all:
Alaska
Florida
Nevada
South Dakota
Texas
Washington
Wyoming
Of those, only FL and TX are in the south.
2 states don't levy income taxes on earned income:
Tennessee
New Hampshire
Only TN is in the south.
The states that don't levy an income tax generally make up for it with extremely high property and sales taxes OR with severely reduced state services.
If you think that MO's income tax is "brutal" move to TX! You'll probably discover as I did that even without an income tax, TX property taxes are quite a bit higher than the typical MO income and property taxes COMBINED.
2007-12-27 13:13:29 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 1⤋
People in all states pay federal income tax using the same rules. Each state determines how it will fund its state government - most states, but not all, have both an income tax and a sales tax. States without a state income tax are Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming - not exactly clustered in the South.
2007-12-27 21:14:25 · answer #2 · answered by Judy 7 · 1⤊ 1⤋
States that have no state income tax make up for it in other ways. Some use a higher sales tax than other states, some have higher registration fees for their cars, some use other methods I can't think of right now. The southern states do pay Federal income tax, like the rest of us.
2007-12-27 21:08:37 · answer #3 · answered by darkridr 6 · 3⤊ 1⤋
We pay Federal tax we just don't pay State income tax... but believe me we make up for it in other ways.
2007-12-27 21:06:25 · answer #4 · answered by Princess Veronica's Mom 3 · 5⤊ 1⤋
We live in Georgia and we have to pay income and property taxes along with everyone else.
2007-12-27 21:09:14 · answer #5 · answered by Adam P 3 · 2⤊ 1⤋
the proof is in the pudding.
in TX there is no 'income tax'
there is sales tax, vehicles tax, sport taxes,
rental tax, water/sewage tax, property tax and on and on etc.
so they get u in one end or other.
2007-12-27 21:08:04 · answer #6 · answered by Anonymous · 3⤊ 1⤋
Je ne sais pas.
2007-12-27 21:05:09 · answer #7 · answered by Mole Shooz Babii 5 · 0⤊ 4⤋
we do
2007-12-27 21:05:54 · answer #8 · answered by Anonymous · 2⤊ 1⤋