State and local governments maintain roads, run schools and pay police, and they need to fund public functions and state infrastructure. For most Americans, this additional tax burden comes from a combination of state income taxes, state and local sales taxes, and local property taxes.
A Note on Taxes
States With No Income Tax
States With the Lowest Effective Property Taxes
To calculate the least and most tax-friendly states, we researched income, sales and property tax rates by state. Using expenditure and income data from the Bureau of Labor Statistics’ Consumer Expenditure Survey, we constructed a hypothetical family with one dependent, gross income of $82,852, and a home worth $349,400 (the median new home price at the time we conducted our research).
We estimated the state taxes paid by a married couple making the median national income of $82,852, with one child and who own their $349,400 home to assess each state’s tax-friendliness. States are sorted by lowest to highest tax “grade.”