Federal taxes are uniform across the country. However, taxes imposed by states varies throughout the country. Thus, some states impose a limited number of taxes on the residents, while others impose quite heavy taxes. Based on this, there are the least tax-friendly states and best tax-friendly states. If you are relocating, it is essential to know which states impose more taxes and which states impose the least taxes. This is because the taxes will impact your overall financial health.
Here is a list of the top 10 tax-friendly states in the country. Some of the names and rankings may very well surprise you.
- Wyoming: In this state, there is no income tax and taxes on gas are below the average threshold price of the country. It also has the lowest beer tax, and it’s the 9th lowest in terms of property taxes.
- Alaska: This is one state where there is no gas or income tax charged at all. The average sales tax is reportedly 1.76%. Each legal resident gets a Permanent Dividend Fund after a year of staying here.
- South Dakota: Another state that has no income tax. Also, if you add all the sales taxes, it is much lower than the rest of the country. Medicare is well taken care of with no sales tax on prescription drugs.
You Might Also Like : 10 Most Tax-Friendly States In The Country
- Florida: The biggest advantage of Florida apart from the beaches is that it charges no income tax, and its property tax is amongst the lowest in the USA, coming up to $1700 roughly on average. Also, food and medicine are exempt from sales tax.
- Nevada: Much like Florida, Nevada also has lower property taxes ($1500 on an average). Also, there is no income tax at all. Here the gas taxes are as low as 34 cents per gallon. Food and medicine are exempt from taxes.
- North Dakota: In this state, the income tax has been progressively reducing; currently, it stands at 1.10% on taxable income below $100000. This state has also been known to favor agriculture since farm machinery is taxed at a mere 3%. Food and medicine are exempt from taxes.
- Delaware: Delaware is unique because gas taxes are minimal in this state. Also, this state levies no sales tax on any products or services. Even property taxes are the fourth-lowest in the USA. It is said to be a business-friendly place too. All this covers up for their high-income tax rates.
- Arizona: If you happen to earn below $152000, then you are exempt from paying income tax which is otherwise 4.54% if you aren’t married. The property tax is amongst the lowest in this state at $1356 on average. Plus, it levies only 19 cents per gallon of gas.
- Louisiana: When it comes to property and gas taxes combined, Louisiana is cheaper than the other eight states mentioned here. While federal income tax can be avoided courtesy of state taxable income, it is 6% if you earn more than $50000.
- Mississippi: This state charges just 19 cents per gallon of gas and $813 on average as property tax. Income tax rates are being reduced to a huge extent to offset the huge amount of sales taxes that are paid.
Keep yourself updated with the latest on Taxes. Like us on Facebook and follow us on Twitter for more on Investments.
