Best States, Worst States For Dividend Lovers (2024)

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Best States, Worst States For Dividend Lovers (2024)

FAQs

Best States, Worst States For Dividend Lovers? ›

Other places where dividend checks get mauled: Oregon, Minnesota, New Jersey, Vermont and the District of Columbia. Good places for dividend-loving retirees would be the seven states that don't tax dividends: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

Which state doesn't tax dividends? ›

Those eight – Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming – don't tax wages, salaries, dividends, interest or any sort of income. No state income tax means these states also don't tax Social Security retirement benefits, pension payments and distributions from retirement accounts.

What are the worst and best states for taxes? ›

Maine has the highest property tax burden, while Alabama has the lowest. California has the highest individual income tax burden, while seven states (including Texas, Florida and Washington) have the lowest. Washington has the highest sales and excise tax burden, while New Hampshire has the lowest.

What is the best state to live in for income tax? ›

Eight states say 'yes' to no personal income tax, including Alaska, Florida, and Nevada, to name a few. Sales tax — a significant factor: Tennessee (9.548%) and Louisiana (9.547%) lead with the highest combined state and local sales taxes.

Which state has the lowest income tax in the USA? ›

Alaska had the lowest average overall tax burden – measured as total individual taxes paid divided by total personal income – at 5.4%, followed by Tennessee (6.3%), New Hampshire (6.4%), Wyoming (6.6%) and Florida (6.7%).

What is the best state for dividend income? ›

Good places for dividend-loving retirees would be the seven states that don't tax dividends: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

How do you live tax-free from dividends? ›

There are several investment vehicles and account types that allow many investors to earn tax-free or tax-advantaged dividend income. Some of the most popular options include municipal bonds, Roth IRA investments and Health Savings Accounts (HSAs).

What is the best state to retire to avoid taxes? ›

Let's take a look at the ten best tax states for retirement.
  1. Wyoming. Wyoming is considered to be very tax-friendly towards retirees. ...
  2. Nevada. Nevada is considered to be very tax-friendly toward retirees. ...
  3. Florida. Florida is ranked as very tax-friendly toward seniors. ...
  4. Alaska. ...
  5. South Dakota. ...
  6. Georgia. ...
  7. Mississippi. ...
  8. Delaware.
3 days ago

What is the best state to live in financially? ›

Top 5 Best States for Families To Live on the Average Salary
  • Connecticut: The Best State Financially for Families. ...
  • New Hampshire. ...
  • Maryland. ...
  • New Jersey. ...
  • Virginia. ...
  • Hawaii: The Worst State Financially for Families. ...
  • Nevada. ...
  • Florida.
Feb 20, 2024

What state is best financially to retire in? ›

Florida. Once again, Florida leads our list of best states to retire, as it's one of the most affordable places for retirees. Why? Florida is a “very tax-friendly state” with no state income tax and no tax on pension income — which is great for people who want to enjoy their retirement fund to its fullest potential.

What is the best state to retire in 2024? ›

Florida has regained its status as the best state for retirees in 2024. That's according to WalletHub's latest "Best and Worst States to Retire" study. In 2023, Virginia took the top spot and knocked Florida down to No. 2.

What is the cheapest state to live in with no income tax? ›

Of the nine states without income taxes, Alaska has the lowest overall tax burden, at 5.4%, followed by Tennessee (6.3%), New Hampshire (6.4%), Wyoming (6.6%) and Florida (6.7%). Consequently, Alaska has the lowest tax rate in the United States.

What state has the most expensive taxes? ›

Tax on personal income varies from state to state and can range from 0 to 13.3%. The states with the highest taxes are California, Hawaii, Oregon, Minnesota, Iowa, New Jersey, New York, and Vermont where residents pay 8% or higher on state income tax.

Which dividends are tax free? ›

Nontaxable dividends are dividends from a mutual fund or some other regulated investment company that are not subject to taxes. These funds are often not taxed because they invest in municipal or other tax-exempt securities.

How do I know what state is exempt from interest dividends? ›

You can find tax-exempt interest and dividends information in your 1099 form, on the page that says “Mutual Fund and UIT Supplemental Information.” Since our funds are national, you may need to select “More Than One State” when you file your taxes.

Does Texas tax dividends? ›

Taxpayers in states with no personal income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming) face a top marginal tax rate on personal dividend income of 25 percent. Two states that do no tax personal income levy a tax on dividend income.

What states have zero capital gains tax? ›

States with No Capital Gains Taxes

These include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming.

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