South Dakota
Our ranking: Most tax-friendly
State income tax: None
Average state and local sales taxes: 6.4%
Gas taxes and fees: 30 cents per gallon
Sure, it’s cold in the winter. But low taxes will offset some of the cost of staying warm. South Dakota has no income tax, and combined state and local sales taxes are below average for the U.S. — though they are levied on groceries.
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