States With Lowest Taxes 2019

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.

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:

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:

When it comes to sales tax, five states do not have charge sales tax. Those states are:

It’s important to note that local municipalities in Montana and Alaska can impose a sales tax.

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:

  • Alaska
  • South Dakota
  • Wyoming
  • Tennessee
  • Texas
  • Louisiana
  • New Hampshire
  • Nevada
  • South Carolina
  • Mississippi
* Rank based on normalized and combined rates for single filers with no dependents or deductions. Income tax is weighted 70%; sales tax at 30%.
State Tax Rank Income Tax Sales Tax 2019 Pop.
New Hampshire10.00%0.00%1,363,852
Alaska20.00%0.00%735,720
Wyoming30.00%4.00%572,381
South Dakota40.00%4.00%892,631
Florida50.00%6.00%21,646,155
Texas60.00%6.25%29,087,070
Washington70.00%6.50%7,666,343
Nevada80.00%6.85%3,087,025
Tennessee90.00%7.00%6,833,793
North Dakota103.22%5.00%760,900
Pennsylvania113.07%6.00%12,813,969
Colorado124.63%2.90%5,770,545
Indiana133.40%7.00%6,718,616
Delaware146.60%0.00%975,033
Alabama155.00%4.00%4,898,246
Michigan164.25%6.00%10,020,472
Montana176.90%0.00%1,074,532
Arizona184.54%5.60%7,275,070
Utah195.00%4.70%3,221,610
New Mexico204.90%5.13%2,096,034
Oklahoma215.25%4.50%3,948,950
Kansas224.80%6.50%2,910,931
Virginia235.75%4.30%8,571,946
Illinois245.00%6.25%12,700,381
Louisiana256.00%4.00%4,652,581
Georgia266.00%4.00%10,627,767
Missouri276.00%4.23%6,147,861
North Carolina285.80%4.75%10,497,741
Ohio295.39%5.75%11,718,568
Massachusetts305.20%6.25%6,939,373
Mississippi315.00%7.00%2,987,895
Maryland325.75%6.00%6,062,917
Kentucky336.00%6.00%4,484,047
Rhode Island345.99%7.00%1,056,738
West Virginia356.50%6.00%1,791,951
Nebraska366.84%5.50%1,940,919
Connecticut376.70%6.35%3,567,871
South Carolina387.00%6.00%5,147,111
Arkansas397.00%6.50%3,026,412
Wisconsin407.65%5.00%5,832,661
Oregon419.90%0.00%4,245,901
Idaho427.40%6.00%1,790,182
Maine437.95%5.50%1,342,097
New York448.82%4.00%19,491,339
Vermont468.95%6.00%627,180
Iowa478.98%6.00%3,167,997
New Jersey488.97%7.00%8,922,547
Hawaii4911.00%4.00%1,416,589
Minnesota509.85%6.88%5,655,925
California5113.30%7.50%39,747,267