The Best States to Pay Taxes In
If you are planning to move, perhaps to retire, before you choose a location to go to, it may be best to first focus on the taxes you will pay in those locations. The amount of money you could save by moving to a state with a lower tax rate will differ from one person to the next, but if you want to save money and are planning to move (and have the flexibility to choose where you are going, ) it is a good idea to know where the best rates are.
Top Rated States
The following are some states that offer the best state tax rates. While you cannot avoid paying taxes from time to time, finding the place where you can call home and pay less may be ideal for you anyway.
- Move to Alaska. The state has the lowest state taxes period. In fact, those who live here do not have to pay any state taxes on their income and they do not pay any sales tax. Often, residents get refunds from the state government because of the excessive revenue the state generates from the companies that mine for oil here. It is definitely the place to move.
- New Hampshire offers options, too. In New Hampshire, there is no personal income tax paid by residents of the state. While you may pay other types of state taxes, you will not have to be taxed on income, which is where many people end up paying taxes on in the first place.
- Tennessee is number three when it comes to paying the lowest state taxes. Here, you will pay state taxes, but you will only owe money on dividends and on interest, nothing more. This cuts into what you have to pay significantly compared to many other states.
- Delaware keeps things affordable, too. Here, you do not have to pay sales tax when you purchase things. Unlike other states, this helps to keep the costs far lower than what you may expect to live here.
- Alabama comes in at number five in the most affordable locations to live when you want state tax savings. It is ideally a great place to retire since it offers significant tax breaks to seniors specifically.
- Oklahoma offers a nine percent income tax burden to residents. In fact, this state's state income is at just 6.25 percent in the highest area. It is one of the lowest amounts people pay in other states.
- South Dakota is also an affordable place to call home. Here, you will not have to pay personal income taxes if you live in the state.
It is a good idea to know what the state tax is in your area compared to other areas if you are moving. These locations do not necessarily have a poor quality of life either, with those living in Alaska and New Hampshire especially having a high standard of living even though they pay far less in state taxes than others do.
George Gallagher is a finance writer who also works with parents to find the best private student loan for their children.