South Dakota
State income tax: None
Average local sales tax: 6.40%
Gas taxes and fees: 30 cents per gallon
You’ll need to bundle up in South Dakota’s winter, but because you don’t have to pay state income taxes here, maybe you can afford to fly south for a couple of weeks in January. South Dakota’s combined state and local sales taxes are below average for the U.S. However, while prescription drugs are exempt from sales taxes, food, nonprescription drugs and many services are taxed in the Mount Rushmore State.
You can expect to pay sales taxes on more of your online purchases, too. South Dakota brought the case that led the Supreme Court to overturn previous court rulings that made it difficult for states to collect sales taxes for online purchases. It’s planning to collect sales taxes from out-of-state online retailers on November 1.
Property taxes here are above average for the U.S. The property tax on South Dakota’s median home value of $146,700 is $1,943.
1 thought on “10 Tax-Friendly States for a Better Life in the U.S.”
Interesting that Texas, with NO state income tax, a rather low rate of other taxes isn’t mentioned. Could be because it, unlike the other states, is Republican run. Could it?