Here’s a look at the lowest tax states in America:
1. Alaska
Alaska is the least populated state in the US – with only 663,478 people as of 2012. It’s also the sixth-largest state. Yet Alaska has held onto its title as the No. 1 state for lowest taxes since 2007. According to WalletHub’s report, Alaska has no state individual income tax, sales tax, or corporate income tax. Alaska does have a state property tax, and you’ll find it’s only about 0.4%. The unemployment rate is also well below average at 7.4%, tied for 12th lowest in America.
2. Florida
This state takes the second spot for the lowest taxes. With Florida having no state personal income tax, property taxes are the state government’s primary income source. At 2.8%, Florida is tied for the second-highest property tax rate among states with a population over 1 million. And according to WalletHub, it’s the sixth-best state with a low unemployment rate of 7.3%.
3. South Dakota
With no state income taxes, South Dakota takes third among the least taxed states in America. South Dakota is tied for first in property tax with a rate of 2.4%. The state also has the second-lowest corporate income tax at 1.3%. The state also has a low unemployment rate of only 5.8%.
4. New Hampshire
This state is tied with South Dakota for the fourth spot in lowest taxes. New Hampshire has no state income tax, no sales tax, or corporate income tax. New Hampshire also holds a low unemployment rate of 6.9%. According to WalletHub’s report, New Hampshire is ranked 11th in property taxes at 2.5%. In terms of crime rates, the murder rate is meager compared to other states in America.
5. Nevada
Nevada comes in fifth for lowest taxation. The state has no individual income tax, and the corporate tax level is also below average, ranking 41st among all states. Nevada’s unemployment rate is only 7%, among the lowest of all states in America. And according to WalletHub’s report, Nevada has a property tax of 2.4%.
6. Tennessee
Coming in sixth for lowest taxes, Tennessee has a sales tax rate of only 7%. It also has one of the lowest unemployment rates in America, at only 5.2%. The state’s property tax is 2.8% and has a low corporate tax rate of 5%. WalletHub’s report ranks Tennessee 24th for property crime rating, which is below average.
7. Texas
Texas comes in seventh for lowest taxes in America. With no state income tax, Texas does have a corporate income tax. It’s also one of the few states to levy a mandatory sales tax on cars, trailers, boats, and mobile homes. At 8.25%, Texas has the eighth highest sales tax rate in America. The state’s unemployment rate is also below average at only 5.5%.
8. Washington
The eighth spot for lowest taxes goes to Washington state, similar to Tennessee for no state personal income tax and sales tax but has a corporate income tax at 3%. The unemployment rate in Washington is 7.5%, the 7th lowest rate in America. Washington’s property tax, according to WalletHub, is just 2.9%.
9. New Mexico
With no state income taxes and a low unemployment rate, New Mexico is ninth for lowest taxes in America. New Mexico also has a property tax that is the third-lowest of all states in the US at 1.9%. WalletHub ranked New Mexico 20th for property crimes, which means it’s slightly above average. New Mexico’s corporate income tax is 3.2%, the lowest in the US.
10. Wyoming
Wyoming state is one of the least taxed states. It has no state income tax and a low unemployment rate of only 5.4%. Wyoming also has the third-lowest property tax of all 50 states at 1.9%. WalletHub ranked Wyoming as 8th best in property crimes – meaning slightly above average. Wyoming has a corporate income tax rate of 6%, ranking 18th among all states.
Low taxes is one reason you may want to move to one of these states. But you should also check if you could get a job and know how much house you would be able to buy while being there and also you need to see the crime rates, good schools, and good medics.
