10 US States Where You Pay the Least Taxes

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By Amanda Morgan

It’s hard to be a fan of taxes, no matter what your station in life. Today, it seems like everything you do and own is taxed. From property tax to income tax, to sales tax, there never seems to be a break. It is important to be aware of how your location may be contributing to the amount of taxes you pay. If you like to keep as much money in your pocket as possible, then a change of location may be the answer. Check out these 10 states that have the least amount of taxes based upon income tax, sales tax and property tax percentages.

1) Alaska

Seven states in the United States of America have no income tax. In order to accurately create a list of states with the lowest taxes, both sales and property taxes were taken into consideration. Alaska is low in both of these categories, giving it the number one spot on this list. Alaska has no sales tax in the state. Although some local jurisdictions may impose a local tax, you will be hard pressed to find another state with sale taxes as low as in Alaska. What you save on income and sales tax might be applied to property tax and living expenses. Property tax in Alaska is at 1.23%. This is above the national average of 1.19%. The cost of living in Alaska is also quiet high since it is so far removed from mainland America. On average the cost of living is 27% higher than the national average.

Income Tax: None
Sales Tax: None
Property Tax: 1.23%


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2) Wyoming

Wyoming has no income tax like Alaska but does have a tax on sales. Sales tax in Wyoming is typically 4.0% but can go as high as 6.0% depending on the area. Compared to the national average of 5.95%, Wyoming has a low sales tax. Also if you are looking for a good price on beer, head to Wyoming since it has the nation’s lowest beer tax. Property tax in Wyoming is the 9th lowest with a rate of .62%. Businesses also benefit greatly from moving to Wyoming. With the lack of corporate state income tax, personal state income tax, and inventory tax, Wyoming provides a lot of benefits. Whether you are concerned about personal taxes or business related taxes, Wyoming is the place to go.

Income Tax: None
Sales Tax: Ranges from 4.0% to 6.0%
Property Tax: .62%


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3) South Dakota

South Dakota is one of the seven states that implements no income tax. The sales tax range is very similar to Wyoming at a rate of 4.0% to 6.0%. With no income tax and little sales tax, you can keep more money in your pocket. While income tax and sales tax are well below the national average, property tax is above. The average property tax rate is 1.36%. This tax is based on an assessment of a home’s value. The assessment is determined annually and can cause this rate to increase or decrease. Besides low taxes, South Dakota also has a low cost of living, which helps you to keep more of your money. While utilities, medical care, and transportation costs are all lower, groceries are typically more expensive than the national average. Since this is the only cost or tax higher than the national average, South Dakota is one of the best states in the country to help you save money.

Income Tax: None
Sales Tax: 4.0%-6.0%
Property Tax: Average of 1.36%



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4) Nevada

Next on the list is Nevada, home of Las Vegas and surprisingly no income tax. Sales tax in Nevada can range from 4.6% to 8.15% depending on state and local taxes. The average property tax rate is 0.96%. Property tax is based upon the assessed value of your home. 35% of this assessed value is considered taxable value. Nevada has a law in place which limits the state from increasing property tax by more than 3% per year. This is regardless of if the house is appraised at a higher value than the prior year. Overall living expenses are typically higher than the national average. Living expense include housing, food and groceries, and transportation. The only expense not higher than the national average is utilities. So feel free, if you move to Nevada, to cool and heat your home as often as you would like. Nevada’s low taxes on income, sales, and property make this state one of the best places to live if you don’t like taxes.

Income Tax: None
Sales Tax: 4.6%-8.15%
Property Tax: 0.96%



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5) Florida

Florida is already a great state with its beautiful weather but what helps to make Florida even better is its lack of income tax. While there is no income tax, there is a sales tax. Sales tax in Florida ranges from 6.0% to 7.5%. This range is not too much above the national average. Another benefit of living is Florida is during August, Florida has a tax free weekend on sale purchases. If you really want to save money on taxes, it may be worth it to wait for this weekend. This is especially beneficially for people going back to school since this weekend tends to be close to the start of school year. Property tax averages around 0.97% but can fluctuate significantly based on the market value of the home. This small tax rate on property combined with the zero income tax might make you move to Florida.

Income Tax: None
Sales Tax: 6.0%-7.5%
Property Tax: 0.97%



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6) Texas

Everything is bigger in Texas except income tax. There is no income tax within the state of Texas. Although there is no income tax, there are pretty hefty sales and property taxes. Texas has a sales tax rate of 6.25%. This can increase to 8.25% depending on the city or county. Property tax rates in Texas are one of the highest in the country. The average rate is 1.94%. This is over a 50% difference compared to the national average. The reason taxes are so high in Texas is because the money raised by taxes goes directly to schools, law enforcement, and local government. If you are looking to lower your income taxes, Texas is the place to go.

Income Tax: None
Sales Tax: 6.25%- 8.25%
Property Tax: 1.94%


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7) Washington

Washington is the final state on the list which has no income tax. Out of the seven states with no income tax, Washington has the highest sales tax rate at 6.5%-9.9%. The property tax rate is below the national average at 1.06%. In addition to both of these taxes, Washington also taxes personal properties, estates, and businesses. Taxation plays an important role in creating revenue for the state of Washington which explains why there is so much of it. 30% of Washington’s revenue is devised from these taxes. The cost of living in Washington is not cheap. On average the cost of living is higher than the national average. This difference can especially be seen in doctor visit and medical bills. These two expenses tend to be much higher than the national average. Overall Washington’s taxes are either below average or on par with the national average making it a great place to live if you want the least amount of taxes.

Income Tax: None
Sales Tax: 6.5%-9.9%
Property Tax: 1.06%


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