Income, Sales, Death and Gift State Taxes Chart

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When relocating from one state to another, it's vital to consider the new taxation rates you'll encounter in your new state of residence. This is particularly important for retirees, since many are on fixed incomes and unanticipated taxes can radically impair one's retirement lifestyle.

The following seven states exempt residents from all income tax liability: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

Meanwhile, although New Hampshire and Tennessee, don't tax a resident's wages and salary, these states do tax interest, dividends, and other investment income.

The following five states do not collect a state sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. However, some of these states find ways to collect taxes, in other forms. For example, 62 localities in Alaska collect local sales taxes, ranging from 1% to 7%. Delaware collects a gross receipts tax from businesses, which can equal up to 2.07% of the total receipts from goods sold and services rendered throughout the state. And finally, New Hampshire collects a tax on patrons of restaurants, hotels, prepared foods, car rentals, tobacco, electricity, telecommunication services, real estate transfers and alcohol.
 

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

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 states of Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania. Notice that Maryland and New Jersey collect both state estate taxes and inheritance taxes.

And in May 2013, Indiana's inheritance tax was retroactively repealed to January 1, 2013.

State Gift Taxes

Until recently, only the state of Connecticut collected gift taxes at the state level: 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 In May 2012, the Tennessee gift tax was retroactively repealed back to January 1, 2012. Meanwhile, Louisiana's gift tax was repealed on July 1, 2008, and North Carolina's gift tax was repealed on January 1, 2009.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

The chart below shows which states currently collect state individual income taxes, state sales taxes, state estate taxes, state inheritance taxes, and/or state gift taxes. Note that 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

StateIndividual Income TaxSales TaxEstate TaxInheritance TaxGift Tax
AlabamaYesYesNoNoNo
AlaskaNoNoNoNoNo
ArizonaYesYesNoNoNo
ArkansasYesYesNoNoNo
CaliforniaYesYesNoNoNo
ColoradoYesYesNoNoNo
ConnecticutYesYesYesNoYes
DelawareYesNoYesNoNo
District of ColumbiaYesYesYesNoNo
FloridaNoYesNoNoNo
GeorgiaYesYesNoNoNo
HawaiiYesYesYesNoNo
IdahoYesYesNoNoNo
IllinoisYesYesYesNoNo
IndianaYesYesNoNoNo
IowaYesYesNoYesNo
KansasYesYesNoNoNo
KentuckyYesYesNoYesNo
LouisianaYesYesNoNoNo
MaineYesYesNoNoNo
MarylandYesYesYesYesNo
MassachusettsYesYesYesNoNo
MichiganYesYesNoNoNo
MinnesotaYesYesYesNoYes, as of 7/1/13
MississippiYesYesNoNoNo
MissouriYesYesNoNoNo
MontanaYesNoNoNoNo
NebraskaYesYesNoYesNo
NevadaNoYesNoNoNo
New Hampshire*YesNoNoNoNo
New JerseyYesYesYesYesNo
New MexicoYesYesNoNoNo
New YorkYesYesYesNoNo
North CarolinaYesYesNoNoNo
North DakotaYesYesNoNoNo
OhioYesYesNoNoNo
OklahomaYesYesNoNoNo
OregonYesNoYesNoNo
PennsylvaniaYesYesNoYesNo
Rhode IslandYesYesYesNoNo
South CarolinaYesYesNoNoNo
South DakotaNoYesNoNoNo
Tennessee*YesYesYesNoNo
TexasNoYesNoNoNo
UtahYesYesNoNoNo
VermontYesYesYesNoNo
VirginiaYesYesNoNoNo
WashingtonNoYesYesNoNo
West VirginiaYesYesNoNoNo
WisconsinYesYesNoNoNo
WyomingNoYesNoNoNo

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.