New Hampshire
Our ranking: Tax-friendly
State income tax: None on earned income
Average state and local sales taxes: None
Gas taxes and fees: 24 cents per gallon
The Granite State depends more on property taxes (third-highest in the country) for revenue than most states because there are no general income taxes or sales taxes. It also receives substantial revenue from taxes on motor fuels, tobacco products and alcoholic beverages sold through state liquor stores. The state income tax is limited to a 5% tax on dividends and interest; a $1,200 exemption is available for residents 65 or older.
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