Tax Exempt States for Full Time RVing
I know a few of the states have no state tax when it comes to purchasing RV's( NH being one), I'm looking for a state with this and where you can renew you drivers license and vehicle registration onl...
Forum Discussion
Rollnhome wrote:
If you earn money in a state you pay their state taxes on the money. Everyone pays Fed Tax (if owed). If you live in South Dakota and earn money in New York you pay New York state income taxes. Buying an RV you ultimately pay sales tax to your resident state. the state in which you register the RV and show proff of residence.
This also varies by state. Some tax out of state resident on income earned in the state. Others tax their own residents on income earned out of state. Sometimes there is a "foreign state" tax credit based on reciprocity, but not always, so double taxation is possible.
I had to pay state income tax on income earned in Norway, Egypt, China, and Venezuela, paid through a Cayman corporation, because it was paid to me while residing in Oklahoma. There was not a foreign tax credit applied to my state taxes, although there was a credit toward my federal taxes.
It gets complicated, best to get the specifics, rather than generalize on what any single state does.
