Core Insights - Moving to states with no income tax may lead to unexpected tax burdens from other sources, impacting retirees and those living on passive income [1][2] Group 1: Hidden Taxes in Income Tax-Free States - Higher average property taxes are a common method for states to compensate for the absence of income taxes, with Texas having an effective property tax rate of 1.63%, significantly above the national average of 0.9% [3][4] - New Hampshire has the fourth-highest average property tax rate in the country at 1.89%, which could diminish the benefits of no state income tax for retirees [4] Group 2: Sales Tax - Sales taxes serve as a primary revenue source for states without income taxes, with Florida generating 80% of its state revenue from sales and excise taxes [5] - Only five states do not impose statewide sales taxes, which include Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire [6]