Move to these states to pay off your student loans faster


College Game Plan

Move to these states to pay off your student loans faster

Top States moving taxes
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Pack your bags and head for Alaska if you want to get rid of your student loans.

By moving to a state with no income taxes, you could save close to $2,000 a year — and you can redirect that cash toward your debt repayment, according to an analysis from Student Loan Hero, a personal finance website.

The average state income tax is $1,977, Student Loan Hero found.

That's based on applying the 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 the extra cash to make bigger repayments on your loans.

Seven states have no 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 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.

  • Alaska

    Oil production drives revenue in Alaska. The average salary in The Last Frontier State is the highest among income tax-free jurisdictions: $56,710, according to Student Loan Hero's analysis of Bureau of Labor Statistics data.

    Anchorage, Alaska
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  • Washington state

    Washington state comes in second in earnings for workers, where primary industries range from agriculture to computer software development and aircraft. The average salary is $55,810.

    Seattle Washington
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  • New Hampshire

    High-end equipment manufacturing drives the economy in New Hampshire, where the average salary is $50,180.

    Portsmouth, New Hampshire.
    Denis Jr. Tangney | iStock | Getty Images
  • Texas

    If you're weighing a job in oil, natural gas, agriculture or defense, you may want to consider Texas. The average salary in The Lone Star State is $47,770.

    Austin, Texas
    David Sucsy | Getty Images
  • Wyoming

    In Wyoming, agriculture is king, but the state is also home to coal and natural gas industries. The average salary there is $46,840.

    Chung Hu | Flickr | Getty Images