Why do some states have no income tax? What makes them different?
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Kathryn Morgan
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558 weeks ago
Every state has it's own method of funding the state government. All but 9 of them have used state level income taxes to raise part of that revenue. The state without a state level income tax have other methods such as higher levels of real estate, property, vehicle, school and sales taxes.
Most of the states without income taxes, like yours in Nevada, have a large tourist base and charge higer rates on things related to tourism as well. The state government is going to get funded and the people in the state, either permenently or on vacation, are going to pay for that. It's just a matter of how the money goes to the state.