Come to Alaska for the views. Stay for the student loan savings.
A recent analysis from Student Loan Hero showed that borrowers could pay down their debts even faster by relocating to a state with no income taxes.
The average state income tax is $1,977, according to Student Loan Hero, a personal finance website that focuses on educational debt.
That’s based on applying an average state income tax rate of 4.05 percent to the average national salary of $49,630. The average college graduate left school with $37,172 in student loan debt, according to Student Loan Hero.
If you were to live in a state that doesn’t tax income, you could use those savings to make bigger repayments on your loans.
There are seven states without an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.
Tennessee and New Hampshire also don’t tax wage income, but they do place levies on investment income and dividends.
Don’t pack up and leave town just yet — you’ll need a place to land first.
“The biggest factor to consider would be employment,” said Elyssa Kirkham, a researcher for the Student Loan Hero study. “You can move to a state with a lower tax rate, but if you’re trading down for lower income, be aware of that.”
Check out the five states below for known attractive salaries without the sting of income taxes.