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10 Most Tax-Friendly States in the U.S.

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Given a choice of several job opportunities across the country, or several contiguous states in which to live for a job in the area, don’t overlook the impact of state and local taxes on your household finances. These ten states impose some of the lowest taxes in the U.S., according to Kiplinger’s analysis of state tax rules. Please have a look.

State taxes and the ways they are collected vary significantly across the country. For example, some states with low income taxes impose above-average sales or property taxes, says Meg Wiehe, state tax policy director for the Institute on Taxation and Economic Policy, a nonpartisan group. Most states allow cities and counties to add their own sales taxes, which can boost combined sales taxes in some cities to 10% or more.

It’s also important to consider potential trade-offs. Low tax revenues may give a state less money to spend on education, transportation, public safety and other services important to you and your family, Wiehe notes. Low taxes don't necessarily lead to a higher quality of life.

Sources: State tax departments, CCH, the Tax Foundation, the American Hotel & Lodging Association, the American Petroleum Institute and the Distilled Spirits Council of the United States.

10 Most Tax-Friendly States in the U.S.

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