Top 10 Least Tax-Friendly States in America

6. Nebraska

Photo by Dr. Victor Wong –

Gas taxes in Nebraska are fairly average, nothing to worry too much about (30.6 cents per gallon). The state also has the fourth-highest wireless service tax in the U.S., 18.84% (state and local combined).

Income and sales taxes are middle-of-the-road too.

More precisely, the state income tax in the Cornhusker State sits at 2.46% on taxable income of $3,230 or less for single filers; $6,440 or less for joint filers, and 6.84% on taxable income over $31,160 for single filers; over $62,320 for joint filers, therefore the effective income tax rate is 3.23% for single filers; 5.22% for joint filers.

Additionally, you have to pay 6.88% in local and state taxes if you move to Nebraska. Oh and if you also opt for a $400,000 house then get ready to pay $7,421 per year since the average property tax sits at $1,855 per $100,000 in home value.

As for inheritance taxes, they range between 1% and 18% unless they are passed to a spouse or a charity.

5. New Jersey

New Jersey.
Photo by ESB Professional –

You’d be surprised to find that income taxes are pretty low in New Jersey compared to other states on the list: 1.4% on taxable income of $20,000 or less and 10.75% on taxable income over $5 million. Shocking, right!? In fact, the Garden State actually has the third-lowest rates. The effective income tax rates are like so: 1.53% for single filers; 3.37% for joint filers.

Is it the sales tax that put New Jersey in the 5th position on our list? Nope! Here, the state and local taxes come up to 6.6%.

So, what gives?

We’ll tell you what. Buying a house here will set you back $10,120 per year for a $400,000. But wait a minute, you may be wondering about the $10,000 cap on the federal deduction for state and local taxes. Yep, you’d also take a hit on federal income tax returns if you itemize. Basically, the average property tax sits at $2,530 per $100,000 in home value.

And to make matters worse, you’ll also have to pay 41.4 cents per gallon if you want to go for a ride.

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