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

How Bonuses Are Taxed

Working hard all year to help your company meet its annual goals deserves a reward, and you've definitely earned that bonus. But bonuses count toward your income for the year, so they're subject to income taxes. Read on to learn how much tax you can expect to pay on your bonus—and for tips on reducing your tax liability.

Read More

Brought to you by TurboTax.com

Tax Reform Changes That Impact Your 2018 Taxes

With all of the buzz about the new Tax Reform many taxpayers are questioning how this will affect their 2018 tax return. These provisions kicked in on January 1, 2018, which means that they will impact your 2018 tax return.

Read More

Brought to you by TurboTax.com

2018 Tax Reform Impact: What You Should Know

Congress has passed the largest piece of tax reform legislation in more than three decades. The bill went into place on January 1, 2018, which means that it will affect the taxes of most taxpayers for the 2018 tax year.

Read More

Brought to you by TurboTax.com

Video: What Are Income Taxes?

Income taxes are a percentage of money that you pay to the government based on every dollar of taxable income. Learn about income taxes with help from TurboTax in this video on tax tips.

Read More

Brought to you by TurboTax.com
Read Full Story