9 States With the Best Taxes in USA

Are you thinking of moving to another country? You might be thinking about taxes when you move to another state. There are many tax rates in each state and everyone would like a lower tax bill. Living in a state that does not have an income tax is one way to achieve this. Sound good, right? But, you might end up paying more in certain states than you would expect. We will discuss the 10 states with the lowest taxes in the United States.

Alaska does not have a sales or income tax. Alaskans have the lowest state and local taxes, 5.16 percent of their personal income. This includes income, property and excise taxes. Due to Alaska’s remote location, however, the cost of living in Alaska is high. Alaska also has the fastest growing healthcare costs in the United States.

Because of its low income taxes, the Grand Canyon State was selected for the squad. The state’s lowest rate of 2.59 percent is not paid by middle-income families, but they pay 3.34 percent. The state’s sales tax, however, is higher than the average national rate. The state sales tax is 5.6 percent. Arizona’s corporate income tax is among the lowest in the nation, so it is a good choice if you are looking to start a business after you move.

Because of its low property and sales taxes, Delaware is one the most tax-friendly state for middle-class families. Delaware has no sales tax, so they cannot go lower than in The First State. You can shop till you drop in Delaware without paying a dime in sales taxes. However, Delaware is not particularly strong in terms of state income taxes. A maximum tax rate is 6.6 percent for incomes above $60,000 Delaware offers significant savings overall.

Florida does not have an income tax. This lowers the tax burden for middle-class families as well as everyone in the state and local governments. The average tax rate in Florida is lower than other states. It is different with the sales tax. The sales tax in the state is 6%.

Nevada doesn’t require you to pay income taxes. The Silver State also has many tax benefits. Nevada has the fourth-lowest average property taxes in the country. But sales taxes in Nevada are not as affordable. It is very high that the state’s sales tax rate is 6.85%. The average sales tax rate for both the state and local governments rises to 8.23% when municipal taxes are included. This is the 13th highest level in the country.

North Dakota
The income tax in North Dakota is very low, particularly for middle-income workers. This is the highest marginal tax, and it only applies to income above $433,000 annually. The state’s income is taxed at either 2.04% or 2.27%. North Dakota has a sales tax but it is only 5.5% which places it at the middle of the sales taxes pack.

South Dakota
South Dakota does not tax income earned by individuals or businesses. South Dakota’s sales tax is also lower than the rest. Its average sales tax is around 4.5 percent for state taxes and 1.9% for local taxes. South Dakota is especially tax-friendly for retirees: Social security, pensions, and other forms retirement income are all exempt from taxes.

Tennessee’s income tax system is one of the most unique. Tennessee used to have a tax on dividend and interest income. However, it was abolished at the close of 2020. In its last year, the tax rate was 1 %. The state is a bit behind the times when it comes sales tax. This is the highest average sales tax rate in the United States at 9.5%.

Wyoming is one of the states that doesn’t collect income taxes. Wyoming is considered a tax haven by most people. It keeps other taxes low too. The state’s sales tax rate, which is only 4.4%, makes it the second-lowest among the United States. Wyoming makes it a priority to avoid paying small fees.