What are the best tax laws ranked by state? Everyone needs to know their state’s specific tax laws. If you want a state tax refund, you need to know your state’s personal income tax. So you know how much your state owes you. Things can become a bit complicated since each state has different tax laws. So, we’re here to list some great state tax rates, which could save you a lot of money.
Best Tax Laws Ranked By State: 9 State Tax Rates To Remember
1. Alaska State Taxes and Tax Stipend
First on our list is the 49th state, Alaska! Alaska made one of our previous lists for having no income tax imposed on its residents. They also have low sales and gas taxes. Additionally, Alaskans receive a tax stipend from the state’s trust fund for oil revenue. The stipend ranges from $1000 to $2000 per year. So, Alaska really is one of the most tax friendly states in the nation.
2. Lowest US State Income Tax Rates
In addition to Alaska, six other states don’t charge personal income tax. These states are Wyoming, Washington, Nevada, South Dakota, Florida, and Texas. So, if you live in these states, you might have to pay federal income taxes, but not state income taxes.
3. Alabama’s Property Taxes
Looking for a house? Well, you wouldn’t want to be stuck somewhere with sky-high state property tax rates. If you’re an Alabama resident, then you’re in luck. Alabama has the second-lowest property taxes in the country. It charges just .43% of the property’s value. What makes it better than Hawaii, which has the lowest property taxes? Because Alabama has a far cheaper average property price, whereas Hawaii’s properties are almost 5 times more expensive.
4. States With No Sales Taxes
— Heidi Golff (@Realtyshark) May 24, 2018
If you want to go on a shopping spree, these are the states you should visit. Oregon, New Hampshire, Montana, and Delaware all do away with sales taxes. Alaska also doesn’t implement a sales tax, but local municipalities do implement retail taxes. You should still be wary though since these states can make up for their lack of sales taxes through different ways. For example, Oregon has one of the highest income taxes, while New Hampshire has significant property taxes.
5. Lowest Gas Tax Rates by State
Once again, Alaska’s the best in this field, since it has the lowest gas tax rates in the country. Alaskans pay just 12.25 cents per gallon of gas. South Carolina and Oklahoma follow, with 16.75 cents and 17 cents per gallon respectively. On the other hand, Pennsylvania pays the most for gas, followed by Washington and Hawaii.
6. States With No Inheritance or Gift Taxes
When a property owner dies and leaves the property to someone, the heir might be liable to inheritance taxes. On the other hand, when the owner is still living and transfers the property, the heir might get slapped with a gift tax. Lucky for us, most states don’t implement either kinds of tax. Only 14 states and Washington, D.C. impose inheritance or gift taxes.
7. Lowest Vehicle Taxes By State
Do you want to buy your dream Range Rover, but you’re worried about vehicle taxes? Well, don’t worry since 24 states don’t implement any vehicle taxes. Delaware, Utah, Florida, and Oregon are among the many states that don’t have car taxes. On a sadder note, if you live in Rhode Island or Virginia, you might pay a hefty car tax.
8. Friendliest State Corporate Taxes
You probably want to know the best tax laws ranked by state for corporations, if you plan on setting up a business. South Dakota and Wyoming seem to be the best states for business. Since they’re the only two states who don’t impose a corporate income tax or gross receipts tax. Nevada, Ohio, Texas, and Washington also have no corporate income tax. They do have a gross receipts tax, which can be much more burdensome.
9. Wyoming’s Beer Tax
Finally, we have a tax law to delight all you beer-guzzlers out there. Of all the states, Wyoming has the lowest tax rates on beer. Wyoming’s beer tax is just 2 cents a gallon compared to Tennessee’s tax of $1.29 per gallon, a 6400% increase. So, drink up!
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The best tax laws ranked by state help you save tons of money. Know the specifics of your state’s tax system, so you know what you should and shouldn’t be paying for. State tax rates can become a bit tricky to understand, but they’re not rocket science. All you need is a little patience, and soon, you’ll be an expert of your own finances!
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