As you can probably imagine by my channels name, Dividend Bull, my main focus is aggressive dividend investing. We’re talking high yielding stocks as well as other alternative investments, including REITs, business development companies, closed end fund, MLP’s and more with the ultimate goal of finding higher dividend paying investments that are safe and dependable with the goal of living off dividends sooner in our lives than later.

But I’ve gotten plenty of comments from people who are not only looking for high dividend paying investments, but also want to pay less taxes as well. Nearly all high dividend paying investments like REITs and BDCs, report their dividends as either being qualified dividends or ordinary income. If you’re the type of investor who wants to pay as little as possible to the government, or if you’re in a higher tax bracket, it usually makes sense to shift your investments into stocks that pay qualified dividends.

But for those who are serious about reducing your taxes and being able to save more of your dividends, there are investments out there that are actually tax free depending on where you live.