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State Tax Chart

Which States Collect Income Taxes, Sales Taxes, Death Taxes and/or Gift Taxes?

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NOTE: State laws change frequently and the following information may not reflect recent changes in the laws. For current tax or legal advice, please consult with an accountant or an attorney since the information contained in this article is not tax or legal advice and is not a substitute for tax or legal advice.

When you decide to move from one state to another, one factor that should be taken into consideration is what type of taxes you will be charged in your new state of residence. This will be particularly important for retirees since many are on fixed incomes and unanticipated taxes can wreak havoc on their retirement lifestyle.

States Without an Individual Income Tax

There are currently seven states that exempt all income earned by their residents from taxes: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

While two states, New Hampshire and Tennessee, do not tax their residents' salaries or wages, they do collect taxes on interest and dividends.

States Without a State Sales Tax

There are currently five states that do not collect a state sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon.

Although Alaska does not collect a state sales tax, 62 localities collect a local sales tax which ranges from 1% to 7%.

Although Delaware does not collect a state sales tax, it does collect a gross receipts tax from businesses which can equal up to 2.07% of the total receipts from goods sold and services rendered in the state.

Although New Hampshire does not collect a state sales tax, it does collect a tax on patrons of restaurants and hotels, prepared food, car rentals, tobacco, electricity, telecommunication services, real estate transfers and alcohol.

State Estate Taxes

Estate taxes, which are calculated based on the overall value of an estate as opposed to who inherits the estate, are currently collected in the following states: Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Tennessee, Vermont and Washington.

The state estate tax exemptions range from a low of $675,000 in New Jersey to a high of $5,340,000 in Delaware and Hawaii. For a chart showing the current state estate tax exemptions, refer to the State Estate Tax and Exemption Chart. For a chart showing the 2014 state estate tax exemptions and top tax rates, refer to 2014 State Death Tax Exemption and Top Tax Rate Chart.

It is important to note that as of January 1, 2014, federal estate tax laws were scheduled to revert to the laws that were in effect in 2001. Nonetheless, Congress and President Obama acted early in 2013 to fix this problem and so the state pick up tax, which would have allowed states like California and Florida to collect a state estate tax, was not reinstated.

State Inheritance Taxes

Inheritance taxes, which are calculated based on who inherits the estate as opposed to the overall value of the estate, are currently collected in the following states: Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania. (That's right, Maryland and New Jersey collect both state estate taxes and inheritance taxes.) In May 2013, Indiana's inheritance tax was repealed retroactively to January 1, 2013.

For a chart showing which beneficiaries are subject to inheritance taxes in the states that currently collect them, refer to the State Inheritance Tax Chart.

State Gift Taxes

Until recently, only one state collected gift taxes at the state level: Connecticut. However, in the late spring of 2013 Minnesota enacted a state gift tax that went into effect on July 1, 2013.

In May 2012, the Tennessee gift tax was retroactively repealed back to January 1, 2012.

Louisiana's gift tax was repealed on July 1, 2008, and North Carolina's gift tax was repealed on January 1, 2009.

Overview of State Taxes

Below is a chart that shows which states currently collect state individual income taxes, state sales taxes, state estate taxes, state inheritance taxes, and/or state gift taxes.

NOTE: This chart shows which state governments collect these types of taxes; while some state governments may not collect a certain type of tax, local governments at the county or city level may collect one even if the state does not.

* Only tax interest and dividends, not salaries and wages

State Tax Chart

State Individual Income Tax Sales Tax Estate Tax Inheritance Tax Gift Tax
Alabama Yes Yes No No No
Alaska No No No No No
Arizona Yes Yes No No No
Arkansas Yes Yes No No No
California Yes Yes No No No
Colorado Yes Yes No No No
Connecticut Yes Yes Yes No Yes
Delaware Yes No Yes No No
District of Columbia Yes Yes Yes No No
Florida No Yes No No No
Georgia Yes Yes No No No
Hawaii Yes Yes Yes No No
Idaho Yes Yes No No No
Illinois Yes Yes Yes No No
Indiana Yes Yes No No No
Iowa Yes Yes No Yes No
Kansas Yes Yes No No No
Kentucky Yes Yes No Yes No
Louisiana Yes Yes No No No
Maine Yes Yes No No No
Maryland Yes Yes Yes Yes No
Massachusetts Yes Yes Yes No No
Michigan Yes Yes No No No
Minnesota Yes Yes Yes No Yes, as of 7/1/13
Mississippi Yes Yes No No No
Missouri Yes Yes No No No
Montana Yes No No No No
Nebraska Yes Yes No Yes No
Nevada No Yes No No No
New Hampshire *Yes No No No No
New Jersey Yes Yes Yes Yes No
New Mexico Yes Yes No No No
New York Yes Yes Yes No No
North Carolina Yes Yes No No No
North Dakota Yes Yes No No No
Ohio Yes Yes No No No
Oklahoma Yes Yes No No No
Oregon Yes No Yes No No
Pennsylvania Yes Yes No Yes No
Rhode Island Yes Yes Yes No No
South Carolina Yes Yes No No No
South Dakota No Yes No No No
Tennessee *Yes Yes Yes No No
Texas No Yes No No No
Utah Yes Yes No No No
Vermont Yes Yes Yes No No
Virginia Yes Yes No No No
Washington No Yes Yes No No
West Virginia Yes Yes No No No
Wisconsin Yes Yes No No No
Wyoming No Yes No No No

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