Florida Paycheck Calculator 2024

HISTORICAL BACKGROUND: Florida's zero income tax policy dates back to 1924 when voters approved a constitutional amendment (Article VII, Section 5) permanently prohibiting state income tax on individuals. This makes Florida one of only a few states where this protection exists at the constitutional level—changing it would require a voter referendum. WHY WAS IT ENACTED? In the 1920s, Florida was competing with other Southern states for residents and businesses. The income tax ban was designed to attract wealthy Northern retirees and entrepreneurs. This strategy proved remarkably successful. HOW DOES FLORIDA FUND GOVERNMENT? Without income tax, Florida relies on: • Sales Tax: 6% state rate + up to 2% local = generates ~$32 billion/year • Property Tax: Average 0.83% of assessed value = ~$40 billion/year • Tourism Taxes: Hotel taxes, rental car fees = ~$14 billion/year • Corporate Tax: 5.5% on corporate profits = ~$4 billion/year • Documentary Stamp Tax: 0.7% on real estate transactions RANKING: According to the Tax Foundation, Florida ranks as the 4th most tax-friendly state overall. The combination of no income tax, moderate property taxes, and reasonable sales tax makes it attractive for most income levels. ECONOMIC IMPACT: Studies show Florida's tax policy has attracted: • Net migration of 300,000+ people annually in recent years • Major corporate relocations (Citadel, Elliott Management, etc.) • Estimated $23 billion in adjusted gross income from new residents (2020-2021)

SAVINGS FORMULA: Florida Savings = State Income Tax You Would Pay Elsewhere DETAILED COMPARISON BY INCOME LEVEL: $50,000 Annual Salary: • California tax: ~$1,900/year (4% average effective rate) • New York tax: ~$2,200/year (4.4% average effective rate) • Florida tax: $0 • YOUR SAVINGS: $1,900-$2,200/year $75,000 Annual Salary: • California tax: ~$3,800/year (5.1% average effective rate) • New York tax: ~$4,100/year (5.5% average effective rate) • Florida tax: $0 • YOUR SAVINGS: $3,800-$4,100/year $100,000 Annual Salary: • California tax: ~$5,800/year (5.8% average effective rate) • New York tax: ~$6,100/year (6.1% average effective rate) • Florida tax: $0 • YOUR SAVINGS: $5,800-$6,100/year $150,000 Annual Salary: • California tax: ~$10,500/year (7% average effective rate) • New York tax: ~$10,200/year (6.8% average effective rate) • Florida tax: $0 • YOUR SAVINGS: $10,200-$10,500/year $250,000 Annual Salary: • California tax: ~$21,000/year (8.4% average effective rate) • New York tax: ~$18,500/year (7.4% average effective rate) • Florida tax: $0 • YOUR SAVINGS: $18,500-$21,000/year LIFETIME IMPACT CALCULATION: Example: $100,000 earner saving $6,000/year for 30 years: • Simple savings: $6,000 × 30 = $180,000 • If invested at 7% return: ~$567,000 at retirement • That's over half a million dollars from tax savings alone! IMPORTANT CONSIDERATIONS: • California also has higher local taxes in some areas • New York City residents pay additional 3-4% city tax • Cost of living differences may offset some savings • Property insurance is higher in Florida (hurricanes)

SHORT ANSWER: No state returns required for Florida residents. FEDERAL FILING REQUIREMENTS (Still Apply): You must file a federal return if your income exceeds: • Single, under 65: $13,850 (2024) • Single, 65+: $15,700 • Married filing jointly, both under 65: $27,700 • Married filing jointly, one 65+: $29,200 • Married filing jointly, both 65+: $30,700 • Head of Household, under 65: $20,800 • Self-employed: $400 or more in net earnings SPECIAL SITUATIONS: 1. Moved FROM another state mid-year: • You'll likely need to file a "part-year" return for your previous state • Example: Moved from California in June → File CA return for Jan-June income • Florida portion = no state return needed 2. Income FROM another state: • If you have rental property in New York, you may owe NY tax on that income • Some states tax non-residents on state-sourced income • Consult a tax professional for multi-state situations 3. Working remotely for out-of-state employer: • Generally, you pay tax where YOU live (Florida = $0) • Exception: States with "convenience of employer" rules (see FAQ below) 4. Business owners: • Florida has a 5.5% corporate income tax on C-corporations • Pass-through entities (LLC, S-Corp) = no state tax (flows to personal) • You may still need to file Florida corporate returns RECORD KEEPING: Even without state filing, maintain records of: • W-2s and 1099s • Proof of Florida residency (driver's license, voter registration) • Date you established Florida domicile (important for part-year situations)

2024 SOCIAL SECURITY WAGE BASE: $168,600 HOW IT WORKS: • Social Security tax rate: 6.2% (employee portion) • Employer also pays: 6.2% (you don't see this on your paycheck) • Tax applies ONLY to first $168,600 of wages • Income above this threshold = NO Social Security tax CALCULATION EXAMPLES: Example 1: $75,000 salary • Social Security tax: $75,000 × 6.2% = $4,650/year • All income is below the cap, so full 6.2% applies Example 2: $168,600 salary (at the cap) • Social Security tax: $168,600 × 6.2% = $10,453.20/year • Maximum SS tax you can pay Example 3: $250,000 salary (above cap) • Social Security tax: $168,600 × 6.2% = $10,453.20/year • The remaining $81,400 is NOT subject to SS tax • You save: $81,400 × 6.2% = $5,046.80 MEDICARE TAX (No Cap): • Rate: 1.45% on ALL earnings • No wage base limit • $250,000 salary = $250,000 × 1.45% = $3,625 ADDITIONAL MEDICARE TAX (High Earners): • Extra 0.9% on wages over: - $200,000 (single) - $250,000 (married filing jointly) - $125,000 (married filing separately) • Example: $300,000 single filer - Regular Medicare: $300,000 × 1.45% = $4,350 - Additional Medicare: ($300,000 - $200,000) × 0.9% = $900 - Total Medicare: $5,250 HISTORICAL WAGE BASE INCREASES: • 2023: $160,200 • 2024: $168,600 (+5.2%) • The base typically increases 2-5% annually based on wage inflation SELF-EMPLOYED NOTE: Self-employed pay BOTH portions: • 12.4% Social Security (up to wage base) • 2.9% Medicare (all earnings) • Additional 0.9% Medicare if applicable

BONUS TAX WITHHOLDING: Method 1: Flat Rate (Most Common) • Federal withholding: 22% flat rate • If bonus exceeds $1 million: 37% on amount over $1M • Plus FICA: 6.2% SS + 1.45% Medicare = 7.65% • Total typical withholding: ~29.65% Example: $10,000 bonus • Federal withholding: $10,000 × 22% = $2,200 • Social Security: $10,000 × 6.2% = $620 • Medicare: $10,000 × 1.45% = $145 • Take-home: $10,000 - $2,965 = $7,035 Method 2: Aggregate (Less Common) • Employer combines bonus with regular pay • Calculates withholding as if it were all regular wages • Often results in HIGHER withholding • More common with payroll software IMPORTANT: Withholding ≠ Actual Tax • The 22% flat rate is just withholding • Your actual tax depends on your total annual income • Many people get refunds on bonus taxes when filing • Higher earners may owe additional tax OVERTIME PAY TAXATION: Federal law: Overtime = 1.5× regular rate (time and a half) Tax treatment: Overtime is taxed the SAME as regular income Example: $25/hour employee, 50 hours worked • Regular (40 hrs): 40 × $25 = $1,000 • Overtime (10 hrs): 10 × $37.50 = $375 • Gross pay: $1,375 • All $1,375 is taxed at your normal rate Why overtime FEELS more taxed: • Higher weekly pay may push you into higher withholding bracket • But annual tax rate is what matters • Consistent overtime = employer should adjust withholding FLORIDA ADVANTAGE: Other states would tax bonuses/OT at state rates too: • California: Add 9.3% on bonuses (high earners) • New York: Add 6.85% on bonuses • Florida: $0 additional! STRATEGIES TO MINIMIZE BONUS TAX: 1. Increase 401(k) contribution before bonus 2. Request bonus in low-income year if possible 3. Ask employer about timing (December vs January) 4. Remember: Over-withholding = bigger refund

YES - Florida taxes ZERO retirement income. Here's the complete breakdown: INCOME TYPES NOT TAXED IN FLORIDA: 1. Social Security Benefits • 100% tax-free in Florida • Compare: Up to 85% taxable federally • Compare: 13 states tax Social Security 2. 401(k) Withdrawals • Traditional 401(k): Tax-free in Florida (taxed federally) • Roth 401(k): Tax-free everywhere 3. IRA Distributions • Traditional IRA: Tax-free in Florida (taxed federally) • Roth IRA: Tax-free everywhere (if qualified) 4. Pension Income • Government pensions: Tax-free • Private pensions: Tax-free • Military retirement: Tax-free 5. Capital Gains • Short-term gains: Tax-free in Florida • Long-term gains: Tax-free in Florida • Compare: California taxes at up to 13.3%! 6. Investment Income • Dividends: Tax-free in Florida • Interest: Tax-free in Florida RETIREMENT SAVINGS EXAMPLE: Retiree with $100,000 annual income: • $30,000 Social Security • $40,000 401(k) withdrawal • $20,000 pension • $10,000 dividends/interest In FLORIDA: • State tax: $0 • Federal tax: ~$8,000-12,000 (depends on deductions) In CALIFORNIA: • State tax: ~$4,000-6,000 • Federal tax: ~$8,000-12,000 • Additional cost: $4,000-6,000/year! Over 20-year retirement: $80,000-$120,000 more in California taxes WHY FLORIDA IS #1 FOR RETIREES: According to U.S. Census Bureau: • Florida: 21.3% of residents are 65+ (highest in nation) • Net retirement migration: ~100,000 people annually • Popular retirement cities: Naples, Sarasota, The Villages OTHER FLORIDA RETIREMENT BENEFITS: • No estate tax • No inheritance tax • Homestead exemption reduces property tax • Senior property tax exemptions available • No tax on out-of-state pension income

2024 FEDERAL TAX BRACKETS - SINGLE FILERS: | Taxable Income | Tax Rate | Tax Owed | |----------------|----------|----------| | $0 - $11,600 | 10% | 10% of income | | $11,601 - $47,150 | 12% | $1,160 + 12% over $11,600 | | $47,151 - $100,525 | 22% | $5,426 + 22% over $47,150 | | $100,526 - $191,950 | 24% | $17,168.50 + 24% over $100,525 | | $191,951 - $243,725 | 32% | $39,110.50 + 32% over $191,950 | | $243,726 - $609,350 | 35% | $55,678.50 + 35% over $243,725 | | Over $609,350 | 37% | $183,647.25 + 37% over $609,350 | 2024 FEDERAL TAX BRACKETS - MARRIED FILING JOINTLY: | Taxable Income | Tax Rate | |----------------|----------| | $0 - $23,200 | 10% | | $23,201 - $94,300 | 12% | | $94,301 - $201,050 | 22% | | $201,051 - $383,900 | 24% | | $383,901 - $487,450 | 32% | | $487,451 - $731,200 | 35% | | Over $731,200 | 37% | STANDARD DEDUCTIONS (2024): • Single: $14,600 • Married Filing Jointly: $29,200 • Married Filing Separately: $14,600 • Head of Household: $21,900 • Additional for 65+/blind: $1,550 (married), $1,950 (single) TAX CALCULATION EXAMPLE: Single filer, $75,000 gross income: Step 1: Calculate taxable income $75,000 - $14,600 (standard deduction) = $60,400 taxable Step 2: Apply brackets • First $11,600 × 10% = $1,160 • Next $35,550 ($11,601-$47,150) × 12% = $4,266 • Remaining $13,250 ($47,151-$60,400) × 22% = $2,915 Step 3: Total federal tax = $8,341 EFFECTIVE TAX RATE: $8,341 ÷ $75,000 = 11.1% MARGINAL VS EFFECTIVE RATE: • Marginal rate: 22% (your highest bracket) • Effective rate: 11.1% (actual percentage paid) • Many people confuse these—you don't pay 22% on ALL income! FLORIDA IMPACT: Your Florida paycheck only has federal + FICA deductions. $75,000 salary → ~$8,341 federal tax + $5,738 FICA = $14,079 total Take-home: ~$60,921 (81.2% of gross)

GENERAL RULE: You pay income tax where YOU physically work, not where your employer is located. FLORIDA REMOTE WORKER SCENARIO: • You live and work in Florida • Your employer is in California • Result: You owe $0 state income tax (Florida rule applies) HOWEVER, THERE ARE EXCEPTIONS: 1. "CONVENIENCE OF THE EMPLOYER" STATES: These states may tax you even if you work remotely elsewhere: • New York (most aggressive) • Pennsylvania • Delaware • Nebraska • New Jersey (partial) NEW YORK EXAMPLE: • Your employer is in NYC • You work from home in Florida • New York may still claim you owe NY tax • Reasoning: You work remotely for YOUR convenience, not employer's necessity • Exception: If employer has no NY office, rule may not apply HOW TO PROTECT YOURSELF: 1. Document that remote work is employer requirement (not your choice) 2. Get written policy stating no NY office available 3. Never work from NY (even 1 day can trigger tax liability) 4. Consult a multi-state tax professional 2. TEMPORARY WORK IN OTHER STATES: If you travel for work to another state: • Many states have "de minimis" exemptions (7-30 days) • Beyond threshold, you may owe that state's tax • Athletes, entertainers have special rules 3. MULTIPLE STATE INCOME SOURCES: • Rental property in California → CA taxes that rental income • Consulting client in Texas → No state tax (TX has none) • Stock options from NY employer → May have NY tax implications BEST PRACTICES FOR FLORIDA REMOTE WORKERS: 1. Establish clear Florida domicile: • Florida driver's license • Florida voter registration • Florida vehicle registration • Florida bank accounts 2. Document your work location: • Keep calendar of where you worked each day • Save VPN logs, badge records • Maintain home office documentation 3. Understand your employer's policies: • Some companies won't hire in certain states • Ask about tax equalization policies • Clarify if they withhold other states' taxes 4. File correctly: • Don't let employer withhold wrong state taxes • If they do, you can claim refund from wrong state • May need to file non-resident return to get refund TAX SAVINGS EXAMPLE: NYC employee moves to Florida, $150,000 salary: • NYC tax avoided: ~$5,500/year • NY State tax avoided: ~$9,500/year • Total savings: ~$15,000/year just from state/city taxes!

While Florida has no income tax, you'll encounter these other taxes: 1. SALES TAX State rate: 6% Local additions: 0% - 2.5% Combined rates by major area: • Miami-Dade: 7% • Orange County (Orlando): 6.5% • Hillsborough (Tampa): 8.5% • Broward (Ft. Lauderdale): 7% • Palm Beach: 7% What's taxed: • Most retail purchases • Prepared food and beverages • Hotel/short-term rentals (additional tourist tax) • Services (some, not all) What's NOT taxed: • Groceries (unprepared food) • Prescription medications • Medical equipment Annual impact estimate: Spending $50,000/year on taxable items × 7% = $3,500 in sales tax 2. PROPERTY TAX State average: 0.83% of assessed value County variations: • Miami-Dade: 1.02% • Palm Beach: 1.11% • Hillsborough: 0.97% • Orange: 0.95% • Broward: 1.08% Example: $400,000 home • Tax at 0.83%: $3,320/year • Compare to Texas (1.68%): $6,720/year • Florida saves: $3,400/year on same-value home HOMESTEAD EXEMPTION: • Primary residence: $50,000 exemption • $400,000 home → taxed on $350,000 • Saves ~$415/year Save Our Homes Cap: • Annual increase limited to 3% or CPI (whichever less) • Long-term homeowners benefit significantly • Can transfer savings when moving within Florida 3. DOCUMENTARY STAMP TAX Rate: $0.70 per $100 (0.7%) Applies to: Real estate deed transfers Example: $500,000 home purchase = $3,500 stamp tax 4. INTANGIBLE TAX ON MORTGAGES Rate: $0.002 per $1 (0.2%) Example: $400,000 mortgage = $800 one-time tax 5. GAS TAX State tax: $0.19/gallon Federal tax: $0.184/gallon Total: ~$0.37/gallon Plus local taxes in some counties 6. VEHICLE REGISTRATION Annual fees: $15-$30 base + weight fees Initial registration: 6% sales tax on purchase price Title fee: $75.75 7. HOTEL/TOURIST TAX State: 6% sales tax Local tourist development tax: 2-6% additional Total in tourist areas: 11-13% (Residents rarely pay this except for staycations) TOTAL TAX BURDEN COMPARISON: $100,000 income, $400,000 home, $40,000 taxable spending: FLORIDA: • Income tax: $0 • Property tax: ~$2,900 (with homestead) • Sales tax: ~$2,800 • Total: ~$5,700/year CALIFORNIA ($100K income, same scenario): • Income tax: ~$5,800 • Property tax: ~$4,000 • Sales tax: ~$3,000 • Total: ~$12,800/year FLORIDA ADVANTAGE: ~$7,100/year savings

YES - Here's how to optimize your W-4 for accurate withholding: WHY ADJUST YOUR W-4? • Too much withholding = interest-free loan to IRS • Too little withholding = penalties and surprise tax bill • Goal: Owe $0 and receive $0 refund (or small refund) STEP-BY-STEP W-4 OPTIMIZATION: Step 1: Use IRS Tax Withholding Estimator • Go to: irs.gov/W4app • Enter income, filing status, dependents • Get personalized recommendation Step 2: Key W-4 Sections Line 3 - Claim Dependents: • $2,000 per child under 17 • $500 per other dependents • This REDUCES withholding Line 4(a) - Other Income: • Add non-wage income (interest, dividends, etc.) • This INCREASES withholding Line 4(b) - Deductions: • If itemizing exceeds standard deduction • Enter the difference • This REDUCES withholding Line 4(c) - Extra Withholding: • Add fixed amount per paycheck • Use if you have multiple jobs • This INCREASES withholding COMMON FLORIDA SCENARIOS: Scenario 1: Single, W-2 employee, standard deduction • Default W-4 usually accurate • Check estimator to verify • No action needed if refund < $500 Scenario 2: Married, both spouses work • Use Step 2 checkbox OR • Both use estimator, divide extra withholding • Common mistake: Under-withholding when both work Scenario 3: Have investment income • Add expected dividends/interest to Line 4(a) • Or make quarterly estimated payments instead Scenario 4: Freelance income on the side • Don't adjust W-4—make estimated payments • Or add to Line 4(c) for convenience PRE-TAX DEDUCTION STRATEGIES: These reduce taxable income AND withholding: 401(k) Contributions: • 2024 limit: $23,000 ($30,500 if 50+) • $23,000 × 22% bracket = $5,060 tax savings • Also reduces current withholding HSA Contributions (if eligible): • 2024 limit: $4,150 individual, $8,300 family • Triple tax advantage: No tax in, grows tax-free, no tax out for medical FSA Contributions: • 2024 limit: $3,200 • Use-it-or-lose-it, but immediate tax savings Traditional IRA (if no employer plan): • 2024 limit: $7,000 ($8,000 if 50+) • Reduces AGI and may qualify you for other credits WITHHOLDING CALCULATOR EXAMPLE: $80,000 salary, single, standard deduction, $6,000 to 401(k): Taxable income: $80,000 - $14,600 - $6,000 = $59,400 Federal tax owed: ~$7,800 Per paycheck (26 pay periods): $300 If your stub shows $350 withheld: • Over-withholding: $50/paycheck × 26 = $1,300/year • Adjust W-4 Line 4(b) to add ~$6,000 in deductions PENALTIES TO AVOID: • Underpayment penalty if you owe > $1,000 • Safe harbor: Withhold 100% of last year's tax (110% if AGI > $150K) • No penalty if owed < $1,000

EXPECTED ACCURACY: Within 1-3% for most standard situations. FACTORS THAT MAY CAUSE DIFFERENCES: 1. PRE-TAX DEDUCTIONS (Reduces Gross Pay) Our calculator doesn't know your: • 401(k) contributions: 0-$23,000/year • Health insurance premiums: $100-$500+/month • HSA contributions: Up to $8,300/year (family) • FSA contributions: Up to $3,200/year • Dental/vision premiums • Commuter benefits Impact: These reduce taxable income, so your actual take-home may be LOWER (but you're getting benefits) 2. POST-TAX DEDUCTIONS (Reduces Net Pay) • Roth 401(k) contributions • Life insurance premiums (employer-sponsored) • Disability insurance • Wage garnishments • Child support withholding • Union dues Impact: Your actual take-home may be LOWER 3. EMPLOYER-SPECIFIC ADJUSTMENTS • Imputed income (taxable value of benefits) • Company stock purchase plans • Employer HSA contributions (taxable in some states, not federal) • Bonus true-ups 4. YTD INCOME FACTORS Your withholding changes during the year: • Early year: May be under-withheld • Late year: Bracket may increase • After hitting SS wage base: Withholding drops Example: $200,000 salary • Jan-Aug: 6.2% SS tax withheld • Sept onwards: Hit $168,600 cap, no more SS withheld • Monthly take-home increases by ~$1,000 in Sept! 5. ADDITIONAL MEDICARE TAX Kicks in at $200,000 (single): • Before: 1.45% Medicare • After $200K: 2.35% Medicare • Extra 0.9% reduces take-home 6. MULTIPLE JOBS If you have multiple W-2s: • Each employer calculates brackets independently • May result in under-withholding • Use W-4 Step 2 to adjust HOW TO VERIFY ACCURACY: Step 1: Compare to actual pay stub • Gross pay should match • Federal withholding may differ (see reasons above) • FICA (SS + Medicare) should be close Step 2: Check YTD totals • Better accuracy than single paycheck • Accounts for changes throughout year Step 3: Use IRS Withholding Estimator • Most accurate for your specific situation • irs.gov/W4app ACCURACY BY SCENARIO: | Scenario | Expected Accuracy | |----------|------------------| | Standard W-2, no deductions | 98-99% | | With 401(k) contributions | 95-97% (need to subtract) | | With health insurance | 95-97% (need to subtract) | | Multiple jobs | 90-95% (withholding varies) | | High earner (>$200K) | 95-98% (Medicare surtax) | | Commission-based | 85-95% (variable income) | WHAT TO DO IF NUMBERS DON'T MATCH: 1. List all pre-tax deductions from pay stub 2. Subtract from gross in calculator 3. Compare net pay 4. If still off by >5%, consult HR or payroll

NINE STATES WITH NO INCOME TAX: 1. 🌴 FLORIDA Income Tax: 0% Sales Tax: 6-8% Property Tax: 0.83% average Best For: Retirees, remote workers, entrepreneurs Key Benefits: Constitutional protection, no estate tax, homestead exemption Drawbacks: Higher property insurance (hurricanes), hot summers 2. 🤠 TEXAS Income Tax: 0% Sales Tax: 6.25-8.25% Property Tax: 1.68% average (HIGHEST of no-tax states) Best For: Families, business owners, energy industry Key Benefits: Strong job market, low cost of living (outside Austin) Drawbacks: High property taxes, extreme weather 3. 🎰 NEVADA Income Tax: 0% Sales Tax: 6.85-8.38% Property Tax: 0.55% average (LOW) Best For: Entertainment industry, hospitality, gaming Key Benefits: No corporate income tax, low property tax Drawbacks: Limited industries, desert climate 4. 🌲 WASHINGTON Income Tax: 0% (BUT has new capital gains tax!) Sales Tax: 6.5-10.5% (HIGHEST) Property Tax: 0.93% average Best For: Tech workers, Amazon/Microsoft employees Key Benefits: Strong economy, natural beauty Drawbacks: Very high sales tax, new 7% capital gains tax on >$250K 5. 🦬 WYOMING Income Tax: 0% Sales Tax: 4% (LOWEST) Property Tax: 0.57% average Best For: Business owners, LLC formation, privacy Key Benefits: No corporate tax, strong asset protection laws Drawbacks: Small population, limited amenities, harsh winters 6. 🏔️ SOUTH DAKOTA Income Tax: 0% Sales Tax: 4.5% Property Tax: 1.22% average Best For: Retirees, trust formation, financial services Key Benefits: No corporate tax, strong trust laws Drawbacks: Harsh winters, rural 7. 🐻 ALASKA Income Tax: 0% Sales Tax: 0% state (some local) Property Tax: 1.19% average Best For: Oil industry, adventure seekers Key Benefits: Permanent Fund Dividend (~$1,300/year to residents) Drawbacks: Remote location, high cost of living, extreme winters 8. 🎸 TENNESSEE Income Tax: 0% on wages (Hall Tax on investment income ended 2021) Sales Tax: 7-9.75% (HIGH) Property Tax: 0.64% average Best For: Musicians, healthcare industry Key Benefits: Low property tax, growing economy Drawbacks: High sales tax, taxed investment income until recently 9. 🏔️ NEW HAMPSHIRE Income Tax: 0% on wages Interest & Dividend Tax: 3% (being phased out by 2027) Sales Tax: 0% Property Tax: 1.93% (VERY HIGH) Best For: Those near Boston wanting no sales tax Drawbacks: Very high property tax, cold winters COMPARISON TABLE: | State | Income Tax | Sales Tax | Property Tax | Overall Rank | |-------|------------|-----------|--------------|--------------| | Florida | 0% | 6-8% | 0.83% | ⭐⭐⭐⭐⭐ | | Texas | 0% | 6.25-8.25% | 1.68% | ⭐⭐⭐⭐ | | Nevada | 0% | 6.85-8.38% | 0.55% | ⭐⭐⭐⭐ | | Washington | 0%* | 6.5-10.5% | 0.93% | ⭐⭐⭐ | | Wyoming | 0% | 4% | 0.57% | ⭐⭐⭐⭐ | | South Dakota | 0% | 4.5% | 1.22% | ⭐⭐⭐⭐ | | Alaska | 0% | 0% | 1.19% | ⭐⭐⭐ | | Tennessee | 0% | 7-9.75% | 0.64% | ⭐⭐⭐⭐ | | New Hampshire | 0%** | 0% | 1.93% | ⭐⭐⭐ | *Washington has 7% capital gains tax **New Hampshire has 3% dividend/interest tax (phasing out) WHY FLORIDA OFTEN WINS: 1. Balanced approach (moderate all taxes) 2. Strong job market and economy 3. Year-round warm weather 4. No estate/inheritance tax 5. Constitutional protection (can't add income tax easily) 6. Large population = better services/infrastructure