Economics

10 Most 'Tax-Friendly' States

Feb. 13, 2019

A new study compares property tax, total sales tax, and personal income taxes paid by the middle 20 percent, or middle-income-earning, U.S. households.

The GOBankingRates study took data from the Institution of Taxation and Economic Policy's 2018 "Who Pays" report, and reveals that homeowners in Illinois, the least tax-friendly state in the study, may want to consider moving to Alaska, ranked the most tax-friendly. Alaska, like Nevada and Florida, has no income tax, helping to push these states toward the top of the friendly ranking, CNBC reports.

However, states that don't levy individual income must find revenue from other sources. This also factored into the rankings. New Hampshire, for example, ranked 12th on the list. Although the state doesn't tax incomes, New Hampshire does have higher property and state taxes. The states lower on the list all had higher state tax rates — with Illinois residents forking over a whopping 12.6 percent of state taxes paid by the middle 20 percent.

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