Thinking about Moving? States With the Lowest Tax Burden!
Over the last year, prices have been rising, and the effect of taxes on your paycheck and life may have been more stressful than usual. Due to this, many people have been looking into the tax differences between states and moving around the country.
Though you may know of the seven states that gain fame from having no state income tax, there are other state taxes to consider when looking for the lowest individual tax. These include property, state and local taxes, and sales taxes. If you have been looking into which states are best to lighten your tax burden, here are some of the lowest tax-burdened states and their estimated average tax rates.
6. Florida
Individual income tax: 0%
Property tax burden: 2.77% (23rd lowest)
Total sales & excise tax: 3.87% (35th lowest)
Overall tax burden: 6.64%
5. New Hampshire
Individual income tax: 0.14% (9th lowest)
Property tax burden: 5.11% (3rd highest)
Total sales & excise tax: 1.16% (2nd lowest)
Overall tax burden: 6.41%
4. Wyoming
Individual income tax: 0%
Property tax burden: 3.32% (15th highest)
Total sales & excise tax: 3.00% (16th lowest)
Overall tax burden: 6.32%
3. Delaware
Individual income tax: 2.20-6.60% (graduated) (3.28% avg. 7th highest)
Property tax burden: 1.77% (5th lowest)
Total sales & excise tax: 1.17% (3rd lowest)
Overall tax burden: 6.22%
2. Tennessee
Individual income tax: 0.06% (8th lowest)
Property tax burden: 1.71% (2nd lowest)
Total sales & excise tax: 3.98% (14th highest)
Overall tax burden: 5.75%
1. Alaska
Individual income tax: 0%
Property tax burden: 3.54% (11th highest)
Total sales & excise tax: 1.52% (5th lowest)
Overall tax burden: 5.06%
If you would like to learn more or to set up a consultation call Marlies Y Hendricks CPA PLLC at either 716-694-3500 or 910-769-8730.
The above information is of a general nature only and should not be relied upon for specific situations.