7 tax-free havens

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Nevada's advantageous tax structure is helping to lure workers from neighboring states: the state population increased by 25% from 2000 to 2006. Beyond lacking an income tax, Nevada also has no inventory tax and low state payroll taxes. Plus, the cost of living is affordable.

Most people cluster in and around Las Vegas, the state's largest city, and Reno, the second-largest, both known for their gaming and hospitality industries. While construction companies have been hit hard since the housing market's downturn, the growing population has created demand for a variety of services as well as new restaurants and bars.

Henderson, just outside of Las Vegas, boasts thriving health care, education, and finance sectors; its location is conducive to doing business with other major southwest cities. Tourists flock to Reno not just for gambling but also for outdoor recreation - nearby Lake Tahoe offers water sports in the summer and skiing in winter. In rural areas, where mining is the primary industry, businesses are benefiting from the high cost of gold and copper.

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