Which States have the Lowest Taxes?
Residents must be curious to know which nine states are the most tax-friendly
. This is not the most updated list, since this is dated 2007, but at least you get the idea.
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Free Tax Filing Software1. Alaska
Alaska has been the most tax-friendly state in many years, and this is because its residents do not pay personal income taxes and sales taxes. According to CNNMoney.com, Alaska residents even get refunds from the local government.
2. New Hampshire
New Hampshire residents only pay about 8% of their income. And just like Alaska, New Hampshire does not have individual income taxes. The sales and property taxes are pretty low as well, so residents only pay little on taxes.
3. Tennessee
Another state that has low state taxes is Tennessee. Apparently, the people living in Tennessee only pay 8.5% of their total income. This is because the residents only owe income tax on interests and dividends.
4. Delaware
Delaware, just like Alaska, does not have taxes on sales. And because of this Delaware is number four on this list, with only about 8.8% of the residents' income going on taxes.
Biz Owner:
Business Tax Questions5. Alabama
Alabama comes in number five. Senior citizens and retirees can get tax breaks in Alabama. The state requires its residents to pay the same rate, only 8.8% of income.
6. Oklahoma
In 2007, the per capita income in Oklahoma was $36,077, and the per capita tax burden was $3,248. Residents were only paying 9% of their income to taxes.
7. South Dakota
Another state that does not have individual income taxes is South Dakota. This state is the same as Oklahoma, only requiring 9% of its residents' incomes. The sales taxes and property taxes must be low as well for the low total amount of taxes.
8. Texas
The Lone Star State may have high taxes on sales, but it makes up for its no income tax policy. Thus, Texas makes it in the most tax-friendly states list. The tax burden percentage is only 9.3%.
9. Montana
In Montana, they do require state income tax, but they do not have sales tax. Because of this, Montana is one of the most tax-friendly states in the US, only requiring their residents to pay 9.7% of their income.
Which States have the Lowest Taxes?
By: Brandon H Johnston
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