Thursday, May 28, 2020 / by Scott Shine
Texas Ranks High for LOW Taxes
We’ve all heard the adage, “Nothing is certain except death and taxes.”
We all know that we have to pay taxes if we live in the United States, but did you know that some states have lower tax rates than others? Some states also may eliminate certain taxes, but often, they’re merely paying more in other types of taxes. Adult citizens in the United States pay a variety of different taxes. We pay taxes to the federal government. We also pay local and state taxes. It isn’t just your annual state tax return, either. We pay property taxes, sales taxes, and other taxes that help fund things like schools, roads, and critical infrastructure.
The organization Tax Foundation released a report in 2018 that evaluated local taxes to determine which states were the most tax-friendly. This report showed that the states with the lowest taxes were:
Because there are so many different types of taxes, there isn’t just one list of states with the lowest tax rates. For example, property tax in one state may be much lower but personal income tax may be much higher. But we can break down the states with the lowest taxes based on tax type.
In 2018, it was found that Louisiana had the lowest property tax rate at 0.18%. Hawaii came in second with a property tax rate of 0.26%. Alabama has the third-lowest property taxes at 0.33%.
The top 10 states with the lowest property tax rates in 2018 were: Louisiana, Hawaii, Alabama, Delaware, District of Columbia, West Virginia, South Carolina, Arkansas, Mississippi, New Mexico.
When it comes to states with the lowest personal income tax rates, there are several that top the list because they have no personal income tax. Those states are: Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, Tennessee, and New Hampshire.