The 10 Best States in the U.S. for Taxes
Wyoming takes the number-one spot and earns the distinction of having the lowest taxes in the country. Although it has one of the highest property taxes in the country, with the average homeowner paying about $2,321 a year, Wyoming redeems itself by
Wyoming takes the number-one spot and earns the distinction of having the lowest taxes in the country. Although it has one of the highest property taxes in the country, with the average homeowner paying about $2,321 a year, Wyoming redeems itself by not imposing corporate or individual income taxes on its residents. It also has a 4 percent sales tax rate, one of the lowest nationwide. And if you need more convincing, the state has the lowest beer tax, at just 2 cents per gallon of beer (the highest is Alaska, at $1.07 per gallon).
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The Mount Rushmore State comes in second for taxes. Like Wyoming, South Dakota has no individual or corporate income tax and has one of the lowest sales tax rates in the country, at just 4 percent. However, because it levies a sales tax for business
The Mount Rushmore State comes in second for taxes. Like Wyoming, South Dakota has no individual or corporate income tax and has one of the lowest sales tax rates in the country, at just 4 percent. However, because it levies a sales tax for business purchases on goods and services, it ranks among the worst in sales taxes.
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While Nevada has one of the highest sales tax rates in the country at 6.875 percent, and ranks 16th in property taxes (the average homeowner pays $1,297 a year), its residents do not have to pay an individual or corporate income tax – making it the
While Nevada has one of the highest sales tax rates in the country at 6.875 percent, and ranks 16th in property taxes (the average homeowner pays $1,297 a year), its residents do not have to pay an individual or corporate income tax – making it the third cheapest tax state in the country.
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“North to the Future” sits in the middle of the pack for property and corporate taxes, ranking 13th and 27th respectively, and Alaska’s residents also pay the highest beer taxes in the country. But the state still manages to come in at number four, t
“North to the Future” sits in the middle of the pack for property and corporate taxes, ranking 13th and 27th respectively, and Alaska’s residents also pay the highest beer taxes in the country. But the state still manages to come in at number four, thanks to zero state sales taxes and individual income taxes.
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Residents of the Sunshine State don’t pay individual income taxes and they enjoy one of the lowest maximum income tax rates in the country, at 5.4 percent. (Compare that to states like New Mexico, Oregon and Nevada, with the highest at 13.5 percent.)
Residents of the Sunshine State don’t pay individual income taxes and they enjoy one of the lowest maximum income tax rates in the country, at 5.4 percent. (Compare that to states like New Mexico, Oregon and Nevada, with the highest at 13.5 percent.) Florida came in at number five: Despite the generous tax climate for individuals, companies in Florida are required to pay an alternative minimum tax, which mirrors the federal AMT and ensures that all businesses pay the same minimum level of taxes each year.
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Though the Evergreen State’s 6.5 percent sales tax rate is on the higher end, and it doesn’t do particularly well in corporate or property taxes (ranking 30th and 22nd respectively), the state still makes the top 10 list because it doesn’t impose an
Though the Evergreen State’s 6.5 percent sales tax rate is on the higher end, and it doesn’t do particularly well in corporate or property taxes (ranking 30th and 22nd respectively), the state still makes the top 10 list because it doesn’t impose any individual income taxes.
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New Hampshire ranks 48th in corporate taxes and 43rd in property taxes, but since it doesn’t have a sales tax and it has one of the lowest individual income tax rates in the country, it comes in at number seven overall.
New Hampshire ranks 48th in corporate taxes and 43rd in property taxes, but since it doesn’t have a sales tax and it has one of the lowest individual income tax rates in the country, it comes in at number seven overall.
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This state comes in at number eight overall for taxes, largely due to its generous sales tax (it has none), But it also ranks well for property taxes, coming in seventh, with the average household paying $1,296 annually. Its corporate taxes (16th in
This state comes in at number eight overall for taxes, largely due to its generous sales tax (it has none), But it also ranks well for property taxes, coming in seventh, with the average household paying $1,296 annually. Its corporate taxes (16th in the nation) and income taxes (ranking 20th) also aren’t terrible.
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The Lone Star State easily makes the list, since doesn’t have an individual income tax, but in almost every other area, Texas ranks poorly: It comes in at 38th for corporate taxes, 32nd for property taxes, and 36th for its sales tax of $6.25 percent.
The Lone Star State easily makes the list, since doesn’t have an individual income tax, but in almost every other area, Texas ranks poorly: It comes in at 38th for corporate taxes, 32nd for property taxes, and 36th for its sales tax of $6.25 percent.
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Utah fell closer to the middle in income and sales taxes (ranking 14th and 22nd respectively), but since it has the third lowest property tax rate ($837 per capita) and fifth lowest corporate tax rate (5 percent flat tax), it’s the 10th best state fo
Utah fell closer to the middle in income and sales taxes (ranking 14th and 22nd respectively), but since it has the third lowest property tax rate ($837 per capita) and fifth lowest corporate tax rate (5 percent flat tax), it’s the 10th best state for overall taxes.
REUTERS/Jim Urquhart