When thinking about buying a short-term rental property, tax considerations can play a significant role in your investment decision. Opting for a property in an income-tax-free state can enhance your return on investment and simplify financial planning. There are nine income-tax-free states in the US:
  • Florida
  • Texas
  • Tennessee
  • Nevada
  • Washington
  • Wyoming
  • New Hampshire
  • South Dakota
  • Alaska
Choosing a property in one of these states can help you maximize your earnings and streamline your investment strategy. Additionally, it’s useful to know the states with the lowest and highest income taxes to inform your decisions further.

Here are the five lowest states with income tax:

  1. North Dakota (2.9%)
  2. Pennsylvania (3.07%)
  3. Indiana (3.15%)
  4. Ohio (3.99%)
  5. Louisiana (4.25%)
*Note: Washington DC is 10.75%.

The five highest income tax states:

    1. California (12.3%)
    2. Hawaii (11%)
    3. New York (10.9%)
    4. New Jersey (10.75%)
    5. Oregon (9.9%)
To get a comprehensive understanding of tax implications, consider the Tax Liability Index, which combines income tax, property tax, and sales tax. Here are the states with the lowest and highest total tax liability:
Lowest total tax liability:
  1. Alaska (1.04%)
  2. New Hampshire (1.43%)
  3. Wyoming (4.56%)
  4. South Dakota (5.67%)
  5. Nevada (6.09%)
Highest total tax liability:
  1. California (20.3%)
  2. New Jersey (19.61%)
  3. Minnesota (17.81%)
  4. Vermont (16.58%)
  5. New York (16.3%)
Being aware of these tax rates can help you better plan and optimize your investment strategy for the best financial outcomes.

International Tax Consulting

Navigating international taxes can be a complex and daunting process due to the diverse laws and deadlines across different countries. While many CPA firms avoid handling international tax matters, Adeptus Advisors specializes in this field and is equipped to manage all your international tax needs and concerns. For expert assistance, reach out to Adeptus’ Director of Sports and Entertainment, James Walker, at (330) 635-4643 or via email at

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