Tax day is just around the corner. Have you filled out your paperwork and made the necessary preparations for filing and paying?
As you are preparing for this year’s tax filing and payment deadlines in Albuquerque, New Mexico or McKinney, Texas with a QuickBooks cleanup, it is important that you always stay organized and on top of all your financial matters. You wouldn’t want to be inconvenienced just because of a little oversight.
That being said, taxes are a meticulous thing to prepare. If you need the help of a professional, do not hesitate to reach out to one. It is better to have all of your bases covered than regret the consequences of poor preparation and organization.
Some states are not as easy to deal with when it comes to taxes. However, others are very friendly to taxpayers when you look at the bigger picture — state and local taxes, effective income taxes, property taxes, fuel taxes, and others.
Here are 10 of the most tax-friendly states in the country based on state and local sales taxes, effective income taxes, fuel taxes, property taxes, alcohol and tobacco taxes, and taxes on wireless services.
Top 10 Tax-friendly States in the U.S.
1. Wyoming
Wyoming is one of the states that have no income tax and among the lowest in sales taxes at only 4%.
2. Delaware
Delaware has no statewide sales tax and its property taxes are among the lowest in the country. Along with Nevada, Delaware is a state that provides favorable tax shelters for U.S. corporations.
3. Alaska
Alaska has had no state income tax ever since its repealing in 1980. Additionally, it also has a 0% sales tax as a state.
4. Montana
Although Montana has a progressive income tax which tops at 6.9%, it has no sales tax and its property taxes are way below the national average rate.
5. Nevada
All retirement income in Nevada is tax-free since it has no state income tax. While its sales tax is slightly higher than the average, residents enjoy its low property taxes.
6. New Hampshire
Even if NH has a 5% tax on dividends and interests, its residents benefit by having their wages and salaries tax-free and no sales taxes.
7. Florida
The sun does indeed shine bright on the Sunshine State for it has no personal income tax, no estate taxes, and among the top tax-friendliest states to retirees.
8. North Dakota
The Peace Garden State’s progressive income tax is one of the lowest in the country while its sales taxes are below the national average.
9. Tennessee
Even if TN’s state taxes are a bit high, it more than makes up for it with no standard income tax and low property taxes, not to mention tax-free retirement income.
10. Oregon
Although the state’s effective income tax is slightly higher than others, it has a no sales tax and a property tax rate that is still below the national average.
Most, if not all, of these states are tax-friendly to retirees and not just its local citizens. If you’re thinking of retiring someplace else for tax benefits, you already have a pretty good idea which ones to consider.
