2. Alaska
Did you know that the Last Frontier imposes virtually no sales tax? Indeed, localities can do that, and it can go as much as 7.5 percent. However, Alaska’s average rate is just 1.76 percent, which is pretty good, considering Alabama’s average combined rate.
Here, you’ll face no state income tax, as well, but the median property tax rate is actually $1,183 per $100,000 of assessed home value. If you’re expecting an inheritance, you don’t have to worry since Alaska is inheritance and estate tax-free.
3. Arizona
Arizona has a 5.6 percent levy when it comes to sales taxes, but localities can make a total of 11.2 percent. According to the Tax Foundation, the average combined levy is about 8.4 percent. And, yes, the Grand Canyon State doesn’t tax your Social Security benefits, but it has a tax on food for home consumption.
The lowest income tax is 2.59 percent, and the highest one is 4.5 percent. When referring to property taxes, the median tax rate is $687 per $100,000 of assessed home value. Thankfully, you’ll don’t have to pay taxes on inheritance and estate.
