4. Washington
- Our rating for the Middle-Class: Most tax-friendly
- State sales tax: 6.5 percent state levy
- Income tax: The Evergreen State imposes no state income tax.
- Property taxes: Those who purchase a home in Washington must be aware of its median property tax rate of $929 per $100,000 of assessed home value.
In the Evergreen State municipalities can add 4 percent to Washington’s 6.5 percent tax levy and, according to the Tax Foundation, when combined, the average rate translates to 9.23 percent.
Fortunately for its residents, Washington doesn’t tax prescription drugs and food items. However, fashion enthusiasts may suffer—the state taxes clothing. Lastly, motor vehicles face an extra 0.3 percent sale tax.
3. Louisiana
- Our rating for the Middle-Class: Tax-friendly
- State sales tax: 4.45 percent state levy
- Income tax: The lowest rate is 2 percent (on $12,500 or less of taxable income for those who file as individuals, and $25,000 for married couples filing jointly); the high rate is 6 percent (on more than $50,000 of taxable income for single filers and $100,000 for those who file jointly).
- Property taxes: In Louisiana, the median property tax rate is $534 per $100,000 of assessed home value.
Here, in the Pelican State, localities are entitled to add as much as 7 percent when referring to sales taxes. This means that the average combined rate is approximately 9.52 percent. Prescription drugs and food items are actually exempt from the sales taxes imposed by the state, but again, localities can tax them.
Motor vehicles and clothing are taxed by the state’s sales tax.
