From a Forbes.com article by Larry Light. Interview with Rick Kahler, founder of Kahler Financial Group, in Rapid City, S.D.:
“You have nothing to worry about if you live in one of the seven states with no income tax: South Dakota, Wyoming, Nevada, Washington, Texas, Florida and Alaska.”
The best way to escape paying taxes to a state you no longer live in? Move to a state with no income tax first before relocating abroad. You must prove to your old state that you have left and have no intention of ever coming back.
This means moving for real—cutting as many ties to your old state as possible and establishing as many as possible in your new state. You will want to sell your home, close bank accounts, cancel any mailing addresses, change healthcare providers and health insurance companies (including Medicare), be sure no dependents remain in the state, and register to vote and get a driver’s license in the new state.
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