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Which Are the Tax-Free States? As of 2023, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax. Note that Washington does levy a state capital gains tax on certain high earners.
Reportable income does not include investment income, including interest; dividends; capital gains; distributions of income in respect of a decedent such as from annuities, pensions, or retirement funds; investment income reported on K-1s from a partnership, an LLC, or an S corporation; rents and royalties from out-of- ...
States honoring Indiana handgun permits: Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Montana, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, ...
Residents of reciprocal states (Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin) working in Michigan, do not have to pay Michigan tax on their salaries or wages earned in Michigan.
Indiana has a flat state income tax rate of 3.23% for the 2021 tax year, which means that all Indiana residents pay the same percentage of their income in state taxes. Unlike the federal income tax system, rates do not vary based on income level. Rates do increase, however, based on geography.
Instead, it taxes all capital gains as ordinary income, using the same rates and brackets as the regular state income tax. Indiana is one of the states with a flat income tax rate, so no matter the amount of taxable ordinary income, the state tax rate will always be 3.23%.
This is made possible when two or more states have an agreement to exempt the income earned by nonresidents from a nearby state. For example, with state income tax reciprocity, a taxpayer who lives in Indiana but works in Kentucky will only pay income taxes to their state of residency.
Five states have a reciprocal agreement with the state of Indiana. They are Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin. All salaries, wages, tips, and commissions earned in these states by an Indiana resident must be reported as if they were earned in Indiana.
Dividend Equivalent means a right, granted to an Eligible Person to receive cash, Stock, other Awards or other property equal in value to dividends paid with respect to a specified number of shares of Stock, or other periodic payments.
A dividend equivalent right entitles the recipient to receive credits equal to the cash or stock dividends or other distributions that would have been received on shares of stock had the shares been issued and outstanding on the dividend record date.