How Working In One of These States Will Save You Money On Taxes

Rick Martinez RN

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Nowadays, travel RNs are making top dollar for their skills.

Crisis work, and travel gigs in general, are the hot topic everyone is chatting about. As a travel RN myself, I know that it's always something we discuss at the dinner table. Even when we're on the road.

That being said, keeping more of the money you make is as important as ever.

As a travel nurse, you may be wondering if any states don't have an income tax. The answer is yes. According to Investopedia, several states don't have an income tax, including Texas, Florida, Nevada, New Hampshire, and Washington. So if you're looking to work in a state with no income tax, these are some great options to consider.

In addition to the states mentioned above, a few others have no income tax, including Alaska, Wyoming, South Dakota, and Tennessee. 

Before I go on, it's important to know that I'm not giving you tax advice, and you should always check with a tax pro. So if you're looking for a state with no income tax, there are plenty of options to choose from. Just be sure to research the tax laws in each state before making a decision, as they can vary significantly.

But first, what exactly does "no income tax" mean?

When a state has no income tax, residents of that state are not required to pay any taxes on their personal income. This includes wages, salaries, tips, and other forms of compensation.

Some states with no income tax still require residents to pay taxes on other forms of income, such as investment earnings or business profits. And some states with no income tax have sales taxes, which means that residents still end up paying taxes, just in a different way.

But in general, when a state has no income tax, residents don't have to pay any taxes on their personal income. 

Residing in a state with zero income taxes can be a money boost

This is especially true for high-income households.

While many states force high earners to pay high taxes, states without personal income tax do not tax their earnings. This allows high earners, many of whom are dual-income travel nurses, to save much more of their money.

But what if I live in a state that has income tax?

This is a great question.

The bottom line is that if your tax home is established in a state that DOES have an income tax, you will never scott free from Uncle Sam. Your tax home state will always charge you income tax, yes, even when you are working in another state. So if the state you travel to has no income tax, you'll still be taxed by your home state of residence.

However, if you have a tax home set in a state with zero income tax and travel to another no-income-tax state, voila! 

Imagine that, no taxes on your wages as you get paid to be a travel RN.

Here are the no income tax states

  • Alaska
  • Florida
  • Nevada
  • New Hampshire
  • South Dakota
  • Tennessee
  • Texas
  • Washington
  • Wyoming

The final word

If you're a travel RN and considering where to work, you must consider the tax implications. 

States with no income tax can be advantageous for high-income earners, but your home state will always charge taxes on your earnings if it's a state that has income taxes. And when looking at which states have NO INCOME TAXES AT ALL (which includes Alaska, Nevada, Texas, among others), make sure to research what other types of taxes are present in these states before making up your mind about whether or not they offer a good deal.

Remember, at the end of the day it's not about how much you make, but how much you keep.

Happy travels!

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I'm a freelance writer and a decades-long travel nurse. Writing about the travel nurse industry and healthcare.

San Antonio, TX
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