Taxes are amongst the most despised obligations of modern society, but let’s face it: there’s no dodging them. Even though the new legislations brings different and new obligations for US citizens in 2014, the amount you’ll have to pay to the federal government still varies greatly, according to the state you live in.
Following, we would like to present you with a countdown we have compiled of the 10 best states for taxes in 2014, according to the State Business Tax Climate Index report, released earlier this year by the Tax Foundation.
Curious to see if you’re living in one of the more permissive states, taxes-wise, in the US? Let’s take a look at the countdown.
No. 10: Indiana
Per capita property tax: $1,182
State sales tax: 7%
State income tax: 3.4%
Indiana recently eliminated the inheritance tax imposed on residents. In addition, its low income tax and its relatively small sales tax make this state a great living place.
No. 9: Utah
Per capita property tax: $837
State sales tax: 5.95%
State income tax: 5%
The combination of low income taxes, low property taxes, and low sales taxes make Utah a pretty good state to be living in.
No. 8: New Hampshire
Per capita property tax: $2,463
State sales tax: 0%
State income tax: 5% (on dividend and interest only)
New Hampshire has a relatively low state income tax and no sales tax. However, its high corporate and property taxes, make it ranks a bit poorly compared to other states in the US.
No. 7: Montana
Per capita property tax: $1,296
State sales tax: 0%
State income tax: 6.9%
Even though Montana’s income tax is higher than that of most states on our countdown, it is still lower than the national average. In addition, Montana charges no sales tax, making it a pretty good place to live in 2014.
No. 6: Washington
Per capita property tax: $1,257
State sales tax: 6.5%
State income tax: 0%
When it comes to sales, corporate, and property taxes, Washington is definitely not the best state you could be living in. However, its lack of income tax makes it fare a bit better than other states.
No. 5: Florida
Per capita property tax: $1,507
State sales tax: 6%
State income tax: 0%
Given its budget surplus for the year 2014, Florida officials are working hard at reducing taxes and fees even more than they already are.
No. 4: Alaska
Per capita property tax: $1,865
State sales tax: 0%
State income tax: 0%
Judging by its lack of sales or income taxes, Alaska should be our top number one state. However, this state has a relatively high corporate tax, making it drop a few positions in our countdown.
No. 3: Nevada
Per capita property tax: $1,297
State sales tax: 6.85%
State income tax: 0%
Nevada has quite high sales and property taxes, but the lack of any state income tax makes it one of the best states to live in. However, tourists might not be equally as pleased with Nevada’s live entertainment tax that charges them any time they buy a ticket for a show in one of the local casinos.
No. 2: South Dakota
Per capita property tax: $1,142
State sales tax: 4%
State income tax: 0%
Similar to our number one spot, South Dakota does not charge any income or corporate taxes, but it does it does levy taxes according to intangible personal property, which makes it rank as only the 2nd best state for taxes in 2014.
No. 1: Wyoming
Per capita property tax: $2,633
State sales tax: 4%
State income tax: 0%
Even though Wyoming has a higher property tax than the national average, the low sales tax and the lack of any corporate or state income taxes make it a good place to live in the coming tax season.
