Where to Go for Lowest State Taxes?
- One can't avoid paying taxes, but the place a person calls home can make a big difference in the year-end tax bill.<br><br>Each year, the Tax Foundation, a nonprofit policy research group, ranks each of the 50 states and Washington, D.C., according to the state and local tax burden borne by residents of those areas.<br><br><b>Next Slide:</b> No.1 for Lowest State Taxes
- <b>Rank: </b>No. 1<br>
<b>Tax Burden: </b>6.6% of income<br><br>Alaska residents pay the lowest state taxes. They do not pay state income or sales tax. They even get tax refunds from the government because of the excess revenue it collects from companies extracting oil from the state.
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<b>See Alaska's Rankings For:</b><br><a href="http://money.cnn.com/magazines/moneymag/bplive/2006/states/AK.html" target="_blank">Best Places to Live<br><a href="http://money.aol.com/mortgage/healthiest-states" target="_blank">Healthiest States</a><br>
<a href="http://money.aol.com/special/dangerousstates06" target="_blank">Most Dangerous States</a>
- <b>Rank: </b>No. 2<br>
<b>Tax Burden: </b>8% of income<br><br>No personal income tax gives New Hampshire residents low state taxes.<br><br>
<b>More New Hampshire Rankings:</b><br><a href="http://money.cnn.com/magazines/moneymag/bplive/2006/states/NH.html" target="_blank">Best Places to Live<br><a href="http://money.aol.com/mortgage/healthiest-states" target="_blank">Healthiest States</a><br>
<a href="http://money.aol.com/special/dangerousstates06" target="_blank">Most Dangerous States</a>
- <b>Rank: </b>No. 3<br>
<b>Tax Burden: </b>8.5% of income<br><br>Tennessee residents pay some of the lowest state taxes because they only owe income tax on dividends and interest.<br><br>
<b>More Tennessee Rankings:</b><br><a href="http://money.cnn.com/magazines/moneymag/bplive/2006/states/TN.html" target="_blank">Best Places to Live<br><a href="http://money.aol.com/mortgage/healthiest-states" target="_blank">Healthiest States</a><br>
<a href="http://money.aol.com/special/dangerousstates06" target="_blank">Most Dangerous States</a>
- <b>Rank: </b>No. 4<br>
<b>Tax Burden: </b>8.8% of income<br><br>No sales tax is another policy that gives Deleware residents some of the lowest state taxes in the country.<br><br>
<b>More Delaware Rankings:</b><br><a href="http://money.cnn.com/magazines/moneymag/bplive/2006/states/AK.html" target="_blank">Best Places to Live<br><a href="http://money.aol.com/mortgage/healthiest-states" target="_blank">Healthiest States</a><br>
<a href="http://money.aol.com/special/dangerousstates06" target="_blank">Most Dangerous States</a>
- <b>Rank: </b>No. 5<br>
<b>Tax Burden: </b>8.8% of income<br><br>Alabama is an especially tax-friendly place for seniors, offering retirees nice tax breaks that add up to low state taxes.<br><br>
<b>More Alabama Rankings:</b><br><a href="http://money.cnn.com/magazines/moneymag/bplive/2006/states/AK.html" target="_blank">Best Places to Live<br><a href="http://money.aol.com/mortgage/healthiest-states" target="_blank">Healthiest States</a><br>
<a href="http://money.aol.com/special/dangerousstates06" target="_blank">Most Dangerous States</a>
- <b>Rank: </b>No. 6<br>
<b>Tax Burden:</b> 9% of income<br><br>The highest state income tax rate for Oklahoma, 6.25%, is actually among the lowest state taxes paid across the nation.<br><br>
<b>More Oklahoma Rankings:</b><br><a href="http://money.cnn.com/magazines/moneymag/bplive/2006/states/OK.html" target="_blank">Best Places to Live<br><a href="http://money.aol.com/mortgage/healthiest-states" target="_blank">Healthiest States</a><br>
<a href="http://money.aol.com/special/dangerousstates06" target="_blank">Most Dangerous States</a>
- <b>Rank: </b>No. 7<br>
<b>Tax Burden: </b>9% of income<br><br>Those looking for low state taxes should target places like South Dakota that do not charge personal income tax.<br><br>
<b>More South Dakota Rankings:</b><br><a href="http://money.cnn.com/magazines/moneymag/bplive/2006/states/OK.html" target="_blank">Best Places to Live<br><a href="http://money.aol.com/mortgage/healthiest-states" target="_blank">Healthiest States</a><br>
<a href="http://money.aol.com/special/dangerousstates06" target="_blank">Most Dangerous States</a>
- <b>Rank: </b>No. 8<br>
<b>Tax Burden: </b>9.3% of income<br><br>Tax-friendly places such as Texas may have one of the highest sales tax rates in the country, but does not charge a personal income tax. So residents who spend less (or have less to spend) will shoulder less of the tax burden.<br><br>
<b>More Texas Rankings:</b><br><a href="http://money.cnn.com/magazines/moneymag/bplive/2006/states/TX.html" target="_blank">Best Places to Live<br><a href="http://money.aol.com/mortgage/healthiest-states" target="_blank">Healthiest States</a><br>
<a href="http://money.aol.com/special/dangerousstates06" target="_blank">Most Dangerous States</a>
- <b>Rank: </b>No. 9<br>
<b>Tax Burden: </b>9.5% of income<br><br>For low state taxes turn to Wyoming, which not only lacks state income tax, but its sales tax rate is below average at 5%.<br><br>
<b>More Wyoming Rankings:</b><br><a href="http://money.cnn.com/magazines/moneymag/bplive/2006/states/WY.html" target="_blank">Best Places to Live<br><a href="http://money.aol.com/mortgage/healthiest-states" target="_blank">Healthiest States</a><br>
<a href="http://money.aol.com/special/dangerousstates06" target="_blank">Most Dangerous States</a>
- <b>Rank: </b>No. 10<br>
<b>Tax Burden: </b>9.7% of income<br><br>Shop 'til you drop in Montana and still pay lowest state taxes, since there is no sales tax charged in this state.<br><br>
<b>More Montana Rankings:</b><br><a href="http://money.cnn.com/magazines/moneymag/bplive/2006/states/MT.html" target="_blank">Best Places to Live<br><a href="http://money.aol.com/mortgage/healthiest-states" target="_blank">Healthiest States</a><br>
<a href="http://money.aol.com/special/dangerousstates06" target="_blank">Most Dangerous States</a>
- Among the list for lowest state taxes, more tax-friendly (or not so friendly) places include:<br><br>
<a href="http://money.cnn.com/galleries/2007/pf/0704/gallery.tax_friendliest/2.html" target="_blank">Tax-Friendly Cities</a><br>
<a href="http://money.cnn.com/galleries/2007/pf/0704/gallery.tax_friendliest/3.html" target="_blank">No Income Tax Here</a><br>
<a href="http://money.cnn.com/galleries/2007/pf/0704/gallery.tax_friendliest/4.html" target="_blank">No Sales Tax</a><br>
<a href="http://money.cnn.com/galleries/2007/pf/0704/gallery.tax_friendliest/5.html" target="_blank">Retiree Tax Breaks</a>
- <br>For those who dream of a low state taxes, low traffic, low cost of living and low stress, the <a href="http://money.aol.com/progfarmer/realestate/bestrural2006" target="_blank">Best Rural Places to Live in America</a> might be the list that delivers.
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