Delaware
State income tax: 2.2% (on taxable income of $2,001 to $5,000) — 6.6% (on taxable income of more than $60,000)
Average local sales tax: None
Gas taxes and fees: 23 cents per gallon
Delaware’s income tax rate escalates fast. Residents with taxable income of $60,000 or more (both single and joint filers) pay the top rate of 6.6%, and the capital city of Wilmington imposes its own wage tax of 1.25%.
There’s a reason Delaware’s Rehoboth Beach outlets are packed even when the sun is shining: The First State has no sales tax. And shoppers are inclined to gas up on their way home because Delaware’s gas taxes are well below average.
Property taxes as a percentage of home value are the fourth-lowest in the U.S. The property tax on the state’s median home value of $233,100 is $1,274, according to the Tax Foundation.
Little Delaware, sandwiched between high-tax states such as Maryland and New Jersey, pulls off this low-tax trick by being a very friendly place for businesses to incorporate, and then collecting fees and taxes from these absentee businesses, whose real operations are elsewhere.
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?