

When you itemize federal taxes, you can deduct up to $10,000 in state taxes (either income or sales, but not both). Since it is difficult to get up to $10,000 in sales taxes but not that difficult to reach $10,000 in income taxes, then most people who itemize will end up paying higher in federal taxes.



Yep, which happens in other no-income tax states without high tourist or property taxes. It has gotten to the point in some of those states that they are trying to put wealth tax in for to make up for losses.