Americans are fleeing 5 states to avoid income tax rates

The most infamously anticipated day of the year might just be April 15 — and if that date isn’t ringing a bell as a national holiday you should have memorized, it’s because it’s Tax Day, aka a time to say goodbye to some of that money we thought we actually got to keep in our accounts.

From loopholes to ‘OMG’-inducing fines, it can begin to feel like you’re getting slammed with tax payments on everything you own — especially when it comes to where you live.

Income tax rates range massively across the United States, with some states taxing residents as high as 13.3 percent come pay day.

And while uprooting your entire life is probably not the most ideal of solutions to avoid paying taxes, many are finding a way to move out of expensive income-tax areas to more affordable areas without much of a hassle at all — by moving just barely across state borders.

Though a move is still a move at the end of the day, these distances are minimal and have the potential to provide major payoffs every April in years to come.

Here are five states where residents are border-hopping to alleviate high income tax rates — and the developments they’re flocking to once they make the jump:

5 PHOTOS
5 states residents are fleeing to avoid tax rates
See Gallery
5 states residents are fleeing to avoid tax rates

#1: California
Moving to: Nevada

Nevada does not have a state income tax on individuals or business entities, while California tacks on a whopping 13.3 percent income tax rate to residents.

Place to live: Clear Creek Tahoe
Private residential community located on the eastern slope of the Carson Range in Western Nevada, set on 2,136 acres bordering 6 million acres of national forest. 

#2: Minnesota

Moving to: South Dakota

Minnesota's income tax rates range from 5.35 percent to 9.85 percent while South Dakota's does not have an income tax rate.

Place to live: Prairie Hills
Luxury community in Sioux Falls, South Dakota

#3: Oregon

Moving to: Washington

Oregon's income tax rate is 9.9 percent, Washington has no income tax.

Place to live: Aldarra Golf Club
Private, membership-only golf community east of Seattle.  

#4: Arkansas

Moving to: Texas

Arkansas has an income tax rate of 6.6 percent, Texas has no income tax.

Place to live: Avilla
Luxury living community in Plano, Texas.

#5: Georgia

Moving to: Florida

Georgia has an income tax rate of 6.6 percent, Florida has no income tax rate.

Place to live: Grand Haven
Golf community seated on a 4,000-acre nature preserve on the Intracoastal Waterway

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

Getting Divorced

If you're going through a divorce, taxes may be the last thing on your mind, so we're here to help. We've got tips for you on which filing status to choose after the divorce, who can claim the exemptions for the kids, and how payments to an ex-spouse are treated for tax purposes.

Read More

Brought to you by TurboTax.com

5 Tax Tips for Single Parents

Filing taxes as a single parent requires coordination between you and your ex-spouse or partner. Usually the custodial parent claims the child as a dependent, but there are exceptions. A single parent is allowed to claim applicable deductions and exemptions for each qualifying child. Even though you claim your child as a dependent, she may still have to file her own tax return if she has income, such as from an after-school job.

Read More

Brought to you by TurboTax.com

7 Requirements for the Child Tax Credit

The Child Tax Credit can reduce your tax bill by as much as $1,000 per child, if you meet all seven requirements: 1. age, 2. relationship, 3. support, 4. dependent status, 5. citizenship, 6. length of residency and 7. family income. You and/or your child must pass all seven to claim this tax credit.

Read More

Brought to you by TurboTax.com

Guide to Filing Taxes as Head of Household

The IRS has provided a series of guidelines to help taxpayers understand whether or not they qualify to file as head of household.

Read More

Brought to you by TurboTax.com
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.