CLOTAX
Tax & Accounting Service
STATES INFO
STATES WITH NO STATE INCOME TAXES
1. Alaska
Alaska has no state income or sales tax.
2. Florida
Florida has no state income tax, but sales and property taxes are above the national average.
3. Nevada
Nevada has no state income tax, but sales taxes, sin taxes and taxes on casinos and hotels are high.
4. South Dakota
South Dakota has no state income tax.
5. Texas
Texas has no state income tax, but sales and property taxes are above the national average.
6. Washington
Washington has no state income tax, but sales and exercise taxes are above the national average.
7. Wyoming
Wyoming has no state income tax.
8. Tennessee and New Hampshire
Tennessee and New Hampshire have no state income tax for wages (earned income) but do for interest and dividends. There will be new legislation for no income tax on interest and dividends soon.
2024 HIGHLIGHTS OF CA STATE CHANGES
CA: HEALTH INSURANCE COVERAGE
Overview
Beginning January 1, 2020, California residents must either:
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Have qualifying health insurance coverage
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Obtain an exemption from the requirement to have coverage
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Pay a penalty when they file their state tax return
You report your health care coverage for 2024 on your 2024 tax return, which you will file in the spring of 2025. If you, your spouse or domestic partner, and dependents had qualifying health care coverage for each month of 2024, then make sure you check the “Full-year health care coverage box,” line 92, on your return.
Penalty
You will have to pay a penalty, the Individual Shared Responsibility Penalty, when you file your state tax return if:
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You did not have health coverage
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You were not eligible for an exemption from coverage for any month of the year
The penalty for no coverage is based on:
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The number of people in your household
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Your California state income
Use our Penalty Estimator tool to estimate the penalty you may owe.
Sample penalty amounts for 2024:
The penalty for a dependent child is half of what it would be for an adult, $450, for 2024.
How to Estimate
The penalty will be the higher of either:
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A flat amount, based on the number of people in the tax household, or
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A percentage of the household income
Flat amount: Pay $900 per adult and $450 per child.
Percentage of household income: Pay 2.5% of the amount of gross income that exceeds the filing threshold requirements based on the tax filing status and number of dependents.
Example
A family of 3 with a gross household income of $200,000 that includes:
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2 parents
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1 child
Flat amount calculation:
$900 per adult, $450 per child: ($900 x 2) + $450 = $2,250
Percentage of household income calculation:
2.5% of gross income that exceeds filing threshold: ($200,000 - $59,917 [1]) x .025) = $2,300.15.
Penalty amount:
Since the percentage of household income was higher than the flat amount, the penalty amount for this family is $3,502.08.