10 Tax-Friendly States for a Better Life in the U.S.

Louisiana

State income tax: 2% (on taxable income of less than $12,500 for single filers or $25,000 for joint filers) — 6% (on taxable income of more than $50,000/single or $100,000/joint)

Average local sales tax: 9.45%

Gas taxes and fees: 20 cents per gallon

With the third-lowest property taxes in the U.S., the Pelican State is a great place to own a home. The property tax on the state’s median home value of $148,300 is $750. Another plus: At 20 cents per gallon, Louisiana’s gas tax is well below the national average of 34 cents per gallon.

Louisiana’s top income tax rate of 6% kicks in at $50,000 of taxable income for a single filer. Louisiana allows residents to deduct their entire federal income tax liability, minus nonrefundable tax credits, from their state income taxes. However, because of the federal tax overhaul, most taxpayers are expected to see their federal taxes decline in 2018. That means Louisiana’s deduction won’t be worth as much, and state taxes here will go up.

The state has a budget shortfall of more than $1 billion, so lawmakers are unlikely to approve measures that would reduce the tax hike. Local parishes and jurisdictions can add their own levies to the state sales tax, boosting the average combined rate to 9.45%, the second-highest in the country. In some jurisdictions, sales taxes are as high as 12%.