States tax residents in a variety of ways. Place too much emphasis on any one tax, and you run the risk of missing the bigger tax picture. A state with no income tax might very well levy high sales taxes. No sales tax might be offset by steep property taxes.
After analyzing the tax policies of all 50 states and the District of Columbia, we identified the state that takes the gentlest overall tax bite out of its residents. That state is Delaware.
Known as the First State, Delaware is a low-tax oasis amid high-tax states along the Eastern Seaboard. It has no sales tax, income taxes are modest, ranging from 2.2% to 6.6%, and its gas taxes are well below average. Property taxes as a percentage of home values are the fourth-lowest in the U.S. Even taxes on beer and wine are bargains compared to most states.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Check out nine more states that rank highly for tax-friendliness. Plus, take a look at our comprehensive state-by-state guide to taxes for more information on all 50 states and the District of Columbia.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
How to Manage Risk With Diversification"Don't put all your eggs in one basket" means different things to different investors. Here's how to manage your risk with portfolio diversification.
-
Tax Tips for Last-Minute FilersBrandon Copeland Atlanta Falcons linebacker and Kiplinger contributing editor Brandon Copeland provides a few tax tips for people filing close to 2022's deadline.
-
Best States to Move to in 2018 for Lower Taxestaxes Where you live and work can have a big tax impact on your paycheck.
-
Can You Tell If These Tax Deductions Are Legit?
Tax Breaks Not all write-offs pass muster with the IRS.
-
4 Overlooked Tax Breaks for New Parents
Tax Breaks Kids can score you valuable credits and deductions on your tax return.
-
4 Overlooked Tax Breaks for Retirees
Tax Breaks Learn how to keep your tax bill low in retirement.
-
4 Overlooked Tax Breaks for the Self-Employed
Tax Breaks Don't miss these deductions if you work for yourself.
-
5 States Where Taxes Are Rising
taxes Taxes are going up in 2017 on residents of these states.
-
Deduct Job-Hunting Expenses on Your 2016 Tax Return
Tax Breaks The tax break can apply even if you didn't land a new job.
