Tax Friendly States Of The United States You Should Head To

Have you ever thought about the economic crisis we are suffering through? Economy is booming with inflation almost knocking the door. Unemployment rate is at the lowest with wages for many workers have remained relatively stagnant. Survival has become difficult as basic necessities are no more affordable. To get higher wage, many people keep on changing jobs till they find the suitable option and at times they even plan to move to another city or state.

Well, moving from a state that has too many taxes that are unbearable any more is a great option. But before packing your bags you would be suggested to do a little research about the costs of living in various states and employment opportunities you can avail. You’ll want to look at the cost of housing, of course, and do checkout the impact of state and local taxes on your bottom line.

Although every state has taxes but there are differences between the percentages and when calculating the yearly amount, there is a huge difference. Here is a list of tax friendly states of the United States you should be heading to live a better life.

Alaska

Are you sick of paying huge taxes? Want to be at a place that has less taxation charges? Heading to Alaska will surely help you as there is no state income tax and the average local sales tax is about 1.43%. The state gives each legal resident who has lived there for a full year an annual permanent fund dividend. To avail the fund, you should stay in Alaska for one calendar year. You become an official once you start receiving the fund. The money provided through the fund has been dropping down. This year around $1600 was received by each legal resident. Gas taxes are the lowest in the U.S. which is 15 cents per gallon plus the legal residents pay no state income taxes or state sales taxes.

South Dakota

South Dakota is one of the states that you can head to. There is no income tax and the average local sales tax is around 6.40%. You can afford flying to south as you don’t have to pay state income tax in South Dakota. The combined state and local sales taxes are below average for the United States. If you plan to stay in Mount Rushmore State, there are taxes on food, non prescription drugs and many other services, while prescription drugs are exempt from sales taxes. Moreover, tax is applied on online purchasing. However, you know that government needs taxes and while you are in South Dakota, there is exemption from income tax.

Florida

Florida also known as the sunshine state is one of the popular places as well. There is no state income tax which is quite relieving. The average local sales tax of Florida is 6.80% and gas taxes and fees is 41 cents per gallon. Talking about property in Florida, property taxes are below the midpoint for the United States, buying property in Florida can be a lot easier than any other state. Food, prescription and non-prescription drugs are exempted from taxes whereas vehicles are taxed at the state’s 6% sales tax rate. You can expect accommodation, food and medicines at low cost while transportation can be a little expensive.

Nevada

Nevada is home to the biggest casino of the world in Las Vegas. The state is known for the luxurious life it offers and is one of the main attractions for tourists. Moving to Nevada can surely be helpful as there is no state income tax and the average local sales tax is around 8.14%. Gas taxes and fees in Nevada are 34 cents per gallon.  The silver state is numbered 16th on the list of lowest property taxes and the gas taxes are the same as the national average of 34 cents per gallon. $1.4 billion is the amount of taxes and fees Nevada receives annually just from the casino industry. However, Nevada still depends on sales taxes to pay the bills. While being in Nevada, food and prescription drugs are exempted from taxes. Moreover, vehicle owners are charged annual government services tax that depends on its value and age.

North Dakota

The Northern Dakota state is not free of state income tax. However, the state income tax is very modest with 1.10% is charged on income of less than $38,700 and 2.90% is charged on income more than $424,950. The sales tax imposed is modest and favors the agriculture industry. Gas taxes are well below the national average. Food and prescription drugs are exempt from sales taxes. Alcohol can be expensive in North Dakota as 7% tax is charged on alcoholic beverages.

These are some of the tax friendly states where you can head to for a better survival. Most of these states don’t have state income tax, which will be helpful for you and food and medicines are also exempted from taxation.