Anonymous asked in Business & FinanceTaxesUnited States · 1 decade ago

Tax free states in USA. Must one live there?

I have a business online. I want to avoid taxes living in U.S as much as possible.

I heard states like naveda, wyoming, florida have no income tax under corporation or personal.

must i reside within that specific state to reap it's benefits, or can i just buy a property there for business, register so, and live somewhere else?


5 Answers

  • 1 decade ago
    Favorite Answer

    There are no "tax free" states, just states with taxes on different things. Those states that have no income tax make up the difference with relatively higher property taxes or sales taxes.

    You will have to declare one state as your home. Requirements for establishing residency differ from state to state. Generally, you will have to prove that you own or rent a domicile in that state. Then, you will file your state tax return in that state.

    Regardless of what state you live in, you will still have to file a federal tax return as well. You will have to pay federal income tax, whether your home state has an income tax or not.

  • 1 decade ago

    There are no tax-free states. States without an income tax make up for it with high sales, property, and other taxes. I paid more in property taxes in TX than I pay in all taxes in MO, which has an income tax.

    If you wish to avoid state income taxes you'll have to move to a state that does not impose one. You CANNOT just declare a state other than where you reside as your domicile unless you are active duty military or a college student attending school away from home. Even then, domicile doesn't change for those folks, it remains what it was prior to the move; it isn't something that you can "declare."

    So, if you move to TX to avoid the income tax where you currently live you'll most likely wind up paying MORE total taxes than you are right now. If that's not an issue for you, then by all means move.

  • 1 decade ago

    Tennessee has no state income tax, but our sales tax is one of the highest in the country. So, just because there is not income tax doesn't mean you can avoid taxes. There is no state that has no tax. Tax is how government is funded. It's a fact of life that everyone must accept.

  • ?
    Lv 4
    4 years ago

    Oklahoma isn't TOO undesirable of an section to stay...gasoline expenditures are between the most inexpensive contained in the country, value of living is fairly straightforward, land values are somewhat low-priced compared to different parts of the country, taxes are not TOO undesirable, and there is a somewhat good interest marketplace right here. Now the drawbacks...OKC is THE cultural desolate tract of the MidWest (yet hi, Dallas is purely 3 hrs away), and the generic public college device is on the decrease end of the size.

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  • 6 years ago



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