taxes

Best States to Move to in 2018 for Lower Taxes

Where you live and work can have a big tax impact on your paycheck.

Sometimes, the only way to get a big raise is to change jobs, and that can mean moving to another state. But before you accept an offer, always consider the hit your paycheck will take from state and local taxes after you relocate. Here are the three most tax-friendly states in the U.S.

1. Wyoming

State income tax: None

Average state and local sales tax: 5.4%

Gas taxes and fees: 24 cents/gallon (national avg. = 32 cents)

Taxes are low across the board. Prescription drugs and most groceries are exempt from sales taxes, and Wyoming has the lowest beer tax in the nation. Low property taxes make owning land affordable.

2. Alaska

State income tax: None

Average local sales tax: 1.76%

Gas taxes and fees: 12 cents/gallon

Gas taxes are the lowest in the U.S., and Alaskans pay no state sales taxes. Property taxes are slightly above average. Here’s the kicker: Every year Alaska gives each resident a dividend check ($1,100 in 2017).

3. South Dakota

State income tax: None

Average state and local sales tax: 6.39%

Gas taxes and fees: 30 cents/gallon

Combined state and local sales taxes are below average, and prescription drugs are exempt from sales tax. Property taxes are above average, but South Dakota’s median home value is an affordable $140,500.

Most Popular

The 11 Most Expensive Cities in the U.S.
real estate

The 11 Most Expensive Cities in the U.S.

From metro areas on both coasts to the middle of the Pacific Ocean, these are the priciest cities in the U.S. to call home.
August 9, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
You'll Save More on Green Home Improvements Under the Inflation Reduction Act
Tax Breaks

You'll Save More on Green Home Improvements Under the Inflation Reduction Act

Tax credits for energy-efficient home improvements will be extended and expanded by the Inflation Reduction Act.
August 12, 2022

Recommended

What Are the Income Tax Brackets for 2022 vs. 2021?
tax brackets

What Are the Income Tax Brackets for 2022 vs. 2021?

Depending on your taxable income, you can end up in one of seven different federal income tax brackets – each with its own marginal tax rate.
August 15, 2022
5 Things to Consider When Weighing a Job Change
careers

5 Things to Consider When Weighing a Job Change

Financially speaking, the decision to stay or go is about more than just salary. Take a holistic look at your offer before deciding to take the leap t…
August 14, 2022
The Inflation Reduction Act and Taxes: What You Should Know
Tax Breaks

The Inflation Reduction Act and Taxes: What You Should Know

Congress has passed the Inflation Reduction Act of 2022—a climate, energy, healthcare, and tax bill that will increase IRS funding, and change some ta…
August 12, 2022
You'll Save More on Green Home Improvements Under the Inflation Reduction Act
Tax Breaks

You'll Save More on Green Home Improvements Under the Inflation Reduction Act

Tax credits for energy-efficient home improvements will be extended and expanded by the Inflation Reduction Act.
August 12, 2022