Most Tax-friendly place in the U.S.?

Few here are CPAs, but we can at least provide insights on how to legally avoid overpaying to the state.


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lil'Jimmy
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Most Tax-friendly place in the U.S.?

Post by lil'Jimmy »

  • Income tax (fed, state, county, municipality)

  • Property tax (only relevant for owners)

  • Sales tax

  • Other fees (e.g., auto registration, auto insurance, etc.

Can we even trust articles like this?
https://www.moneycrashers.com/states-lo ... ax-burden/

Most stuff I read seems horribly superficial.

I am starting over and I work from home. I can move anywhere for at least a few years. I don't mind where I live as long as I don't get robbed.

How have you considered this topic? Are there any resources that have clearer information?

I really want to just pick the place where my $90k and subsequent spending will be taxed the least. I'm an introvert and don't care about friends. I just want friendly-enough & safe-enough place to live.

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Post by mcmastodon »

I've been wondering the same thing is recent years. I live in a state with okay state income taxes, but also 1.5% county taxes, altogether equaling 5%. There must be better out there. I'll keep a watch on this thread.

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Post by boatbum »

Washington State is by far the best if you don't officially live in Seattle-Tacoma metro. Unless one wants to live in WY or Alaska. They might be a little better than WA, but AK has higher prices on good overall. It's tough, but I think WA is the best.

Average property taxes (assuming you want to own), no state tax, no local tax (unless in the metro), sales tax is average (6.5% state, and a couple % extra depending on which county).

People say "sales tax is where WA state gets you", but lets be intellectually honest, 2-3% extra income tax is considerable worse than 2% sales tax UNLESS you are spending all of your income on taxable retail stuff. In most of the counties, sales tax is about 8-8.5% in total. 6.35% is the national average.

The tax foundation is supposed to give us good information, google that, but I didn't find it too accurate or helpful.

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Post by mcmastodon »

A lot of stuff like this out there, but there are really too many variables. It would be nice to have a piece of software that allowed you to input your income, rent/own, price, etc...

https://www.kiplinger.com/slideshow/rea ... index.html (They didn't even get the photos right...... let's you know how aware they were. This is click-bait, SEO-centric garbage)

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Post by mcmastodon »

boatbum wrote: Mon Dec 27, 2021 8:18 pm

Washington State is by far the best if you don't officially live in Seattle-Tacoma metro. Unless one wants to live in WY or Alaska. They might be a little better than WA, but AK has higher prices on good overall. It's tough, but I think WA is the best.

Average property taxes (assuming you want to own), no state tax, no local tax (unless in the metro), sales tax is average (6.5% state, and a couple % extra depending on which county).

People say "sales tax is where WA state gets you", but lets be intellectually honest, 2-3% extra income tax is considerable worse than 2% sales tax UNLESS you are spending all of your income on taxable retail stuff. In most of the counties, sales tax is about 8-8.5% in total. 6.35% is the national average.

The tax foundation is supposed to give us good information, google that, but I didn't find it too accurate or helpful.

If property prices were lower, Washington would be a sure bet. The weather is the most attractive aspect, IMO.

I just think we can say most people would prefer live in Washington over Wyoming or Alaska, two states with likely better tax burdens. New Hampshire looks good, though... very light on housing stock, however, but not as bad as Washington. And NH has 0 sales & income taxes.

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