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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

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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.

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