Taxes will eat away at your wealth every year. While we can’t completely escape taxation, living in specific states will significantly minimize your tax burden.
Your tax burden is the proportion of your income stripped away by taxes, including property tax, income tax, and sales tax.
Hate paying taxes? Check out these ten low-tax states.
10: Oklahoma – 7.12%
Oklahoma is known for its low tax rates, making it an attractive destination for individuals and businesses alike. With no state-level taxes on Social Security benefits and a relatively modest income tax rate, residents can enjoy more of their hard-earned money.
9: Missouri – 7.11%
Taxes in Missouri are very low, making it an attractive destination for businesses and individuals seeking financial relief. The state’s income tax rates are relatively modest, with a top rate of just 5.4%. Furthermore, the state’s sales tax rate is also relatively low, typically hovering around 4.225%, which includes state and local components.
8: Montana – 6.93%
Montana is known for its favorable tax environment, characterized by relatively low taxes, making it an attractive destination for residents and businesses. The state boasts no sales tax, which means consumers can enjoy more affordable shopping experiences, and businesses can operate with reduced overhead costs.
7: South Dakota – 6.69%
With no state income tax, South Dakota residents can enjoy more of their hard-earned income, while businesses benefit from a competitive tax environment. The absence of a state corporate income tax and a low sales tax rate further contribute to the state’s business-friendly climate, attracting companies to establish their operations in South Dakota.
6: Wyoming – 6.42%
Wyoming is renowned for its remarkably low taxes, making it an attractive destination for businesses and individuals seeking to minimize their tax burden. The state boasts a unique tax environment, as it has no state income tax and one of the nation’s lowest sales tax rates, which means residents can keep more of their earnings.
5: Florida – 6.33%
The Sunshine State boasts no state income tax, which is a significant draw for both individuals and businesses. Florida’s relatively low property taxes and sales tax rates contribute to its reputation as a tax-friendly destination.
4: Tennessee – 6.22%
Another state with no state income tax, Tennessee is a low-tax state. The state also boasts relatively low property taxes, which contributes to its appeal as a cost-effective place to live. This tax-friendly environment has not only made Tennessee a popular choice for retirees looking to stretch their retirement dollars but has also encouraged businesses to set up shop in the state, fostering economic growth and job creation.
3: New Hampshire – 6.14%
New Hampshire has notably low taxes that make it an attractive destination for residents and businesses alike. The state imposes no sales tax or state income tax, making it one of just a handful of states in the United States to do so.
2: Delaware – 6.12%
Delaware has no sales tax, which means that consumers can purchase goods and services without the burden of additional taxes. Additionally, Delaware boasts some of the lowest property taxes in the United States, making it an appealing choice for homeowners.
1: Alaska – 5.06%
Alaska almost pays you to live there (sorta, but not really). The state has no state-level income or sales tax, making it an attractive destination for residents and businesses seeking to keep more of their earnings. Instead, Alaska relies primarily on revenue generated from its vast oil and natural resources reserves to fund its government operations. This unique tax structure has made Alaska an appealing place for individuals to live and work and has also attracted investment in the energy and tourism industries.
