The nine states without an individual income tax and the District of Columbia are set aside from the other 41 states in the ROAM Index. Those nine states with no individual income tax do not impose any income tax burdens on taxpayers working remotely in-state, for obvious reasons. Though there are differences between these states in terms of taxation of capital gains or dividend income, all nine states with no individual income tax are ranked in a tie for first place in the ROAM Index. With no state income tax obligations, remote workers don’t have to worry about being caught in a complex web of tax rules. These states are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
ROAM Index: Washington, D.C.
The District of Columbia would receive the highest score of any state with an individual income tax, but this is because it is prohibited by the federal Home Rule Act from taxing nonresidents. Consequently, D.C. lacks the ability to impose harmful tax obligations on remote workers even if it wanted to. D.C. is therefore not ranked on the ROAM Index, though it would slot in between the nine states with no income tax and the top-ranked state with one, West Virginia, if it were.
Read the report here, or click below to read how your state performs on the remote worker index.
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