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States With Lowest Taxes 2020

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.

Here are the 10 states with the lowest income taxes:

  1. Wyoming (0.00%)
  2. Washington (0.00%)
  3. Texas (0.00%)
  4. Tennessee (0.00%)
  5. South Dakota (0.00%)
  6. New Hampshire (0.00%)
  7. Nevada (0.00%)
  8. Florida (0.00%)
  9. Alaska (0.00%)
  10. Pennsylvania (3.07%)

States With Lowest Taxes 2020

*Tax Rate (%)

States With Lowest Taxes 2020

* 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 Income Tax Sales Tax Property Tax (per $100K)
Wyoming0.00%4.00%$635
Washington0.00%6.50%$1,125
Texas0.00%6.25%$1,993
Tennessee0.00%7.00%$768
South Dakota0.00%4.00%$1,388
New Hampshire0.00%0.00%$2,296
Nevada0.00%6.85%$693
Florida0.00%6.00%$1,041
Alaska0.00%0.00%$1,432
Pennsylvania3.07%6.00%$1,674
North Dakota3.22%5.00%$894
Indiana3.40%7.00%$907
Michigan4.25%6.00%$1,729
Arizona4.54%5.60%$754
Colorado4.63%2.90%$607
Kansas4.80%6.50%$1,491
New Mexico4.90%5.13%$830
Utah5.00%4.70%$713
Mississippi5.00%7.00%$862
Illinois5.00%6.25%$2,408
Alabama5.00%4.00%$432
Massachusetts5.20%6.25%$1,294
Oklahoma5.25%4.50%$974
Ohio5.39%5.75%$1,641
Virginia5.75%4.30%$858
Maryland5.75%6.00%$1,125
North Carolina5.80%4.75%$894
Rhode Island5.99%7.00%$1,723
Missouri6.00%4.23%$1,026
Louisiana6.00%4.00%$555
Kentucky6.00%6.00%$925
Georgia6.00%4.00%$1,000
West Virginia6.50%6.00%$615
Delaware6.60%0.00%$604
Connecticut6.70%6.35%$2,114
Nebraska6.84%5.50%$1,855
Montana6.90%0.00%$892
South Carolina7.00%6.00%$601
Arkansas7.00%6.50%$658
Idaho7.40%6.00%$796
Wisconsin7.65%5.00%$615
Maine7.95%5.50%$1,424
New York8.82%4.00%$1,812
Vermont8.95%6.00%$1,908
New Jersey8.97%7.00%$2,530
Iowa8.98%6.00%$1,678
Minnesota9.85%6.88%$1,224
Oregon9.90%0.00%$1,121
Hawaii11.00%4.00%$304
California13.30%7.50%$841