Inflation can have severe implications on a person’s standard of living. From passing on an estate to buying a car or a home, the one thing that remains common is taxes. However, taxation regulations are not fixed for the entire country and can vary from state to state. Depending upon various factors like demographics, location, per capita earnings, population, etc., the percentage of taxation is different across the United States.
Here is a list of America’s most and least tax-friendly states for residents.
Least tax-friendly states
Illinois is a beautiful state with a dream-like landscape situated on the banks of Lake Michigan but living here might not be as financially relaxing. The state is characterized by high-end taxes and an exponential combined aggregate tax percentage. The taxes here are:
Connecticut is one of the most expensive states in the country when it comes to property taxes. The state stands high on the fourth pedestal in terms of the highest property tax in the country. The property tax in Connecticut exceeds the $10,000 cap. In addition to this, the state charges the following taxes:
This technology hub and empire estate state ranks high on the costs of living. The taxes here are:
The state of Wisconsin ranks high in terms of income and property tax. However, the sales taxes are manageable in this state. The taxes in Wisconsin are:
New Jersey has a combination of taxes with some high-end figures and some falling in the lower bracket. Though the property taxes are quite high here, the income tax is comparatively low in the state. Taxes for New Jersey are:
The living expenses in the state of Nebraska are quite low, but the property taxes are quite high, making it a non-tax friendly state. Here’s how taxation works in Nebraska:
The tax regime in Pennsylvania is a stringent one. Moreover, of all the cities, Philadelphia is the most expensive to live in. The taxes here are:
The taxes in Ohio can be a little confusing. Although there are no hefty direct taxes, the combined total amount comes to a significant number. Ohio state taxes are:
Iowa is characterized by high-income tax due to the addition of taxes by the district schools and Appanoose County over and above the state taxes. The taxes here are:
Kansas is famous for its sunflowers and high sales tax rate. This farmland state also imposes a number of additional taxes by school districts. Taxes in Kansas are:
The other end of the spectrum comprises the most tax-friendly states to live in the US.
Wyoming is a prosperous state in terms of money influx due to the revenues generated by energy and mineral extraction businesses. However, the overall taxes levied on the residents of this state are quite low. The taxes in Wyoming are:
Nevada is an excellent state to live in with no income tax and negligible property taxes. Here’s how taxes are imposed in Nevada:
The colorful and lively state of Tennessee is a tax payer’s haven. With a low-income tax and below-average property taxes, Tennessee is a great state to live in that comes with manageable living expenses. The taxes here are:
The beach state is a popular tourist attraction and a comfortable state to live in with respect to taxes. Florida taxes are as follows:
This Iceland state, Alaska, is beautiful and comfortable in both its landscape and taxation regime. The residents are not burdened with high taxation, keeping the overall cost of living moderate. The tax regime for Alaska is:
Washington is a beautiful state adorned by exclusive cities like Seattle, Olympia, etc. The state comes with zero income tax that makes living here affordable. The tax rules here are:
Famous for its Mount Rushmore, South Dakota is again a zero income tax state. The taxes are:
The state of North Dakota is quite a peaceful one with its lush green gardens, green-lands, and nominal taxes. Taxes for North Dakota are:
This Grand Canyon state’s residents enjoy a nominal taxation regime. Here’s the taxation for Arizona:
The residents of the state enjoy zero sales tax. Other taxes are as follows:
Taxes are an important aspect while choosing a place to live in. The states that have a flexible and affordable taxation regime are always the better choice. However, you must factor in all other important personal and professional aspects too.
In case of further queries about taxes and how they can affect you in the future, you can take advice from professional Financial Advisor.
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