South Dakota
Not only will you not pay taxes on your income in South Dakota, but the state’s sales taxes are also below average compared to the rest of the U.S. Here, you’ll have to pay 4.5% in sales taxes with the addition of 4.5% in some localities, but the Tax Foundation found that the average combined rate is 6.4%.
Groceries and clothing items are taxable while prescription drugs are exempt. However, as far as motor vehicles go, they’re exempt from ordinary sales taxes but they are taxable under special 4% excise taxes.
Keep in mind that the Mouth Rushmore State does not impose any inheritance or estate taxes, but in terms of property taxes you’ll have to pay, on average, $1,219 per $100,000 of assessed home value. Here, property taxes are above the national average.
