When fleeing a high-tax state for one with lower or no income taxes, be wary. Your former high-tax state may be watching to see if you really do qualify as a resident of the low-tax state or if you are just claiming that you do in order to avoid paying a higher tax bill. Tax examiners check ATM and credit card receipts, highway toll charges, gasoline service station receipts, airline fares and similar for evidence that taxpayers spent over 182 days in the higher tax state, making them tax residents. Tax examiners also check voting records, country club memberships, legal documents, automobile registrations, pet cemeteries and more.
Delaware* (has no income tax filing requirement on domestic entities located solely out of the state)
New Hampshire* (non-business income tax on dividends and interest income only)
Tennessee (non-business income tax on dividends and interest income only, to be phased out by 2022)
* No Sales Tax on purchases made in-state, as well as these three states: