Affordable Oases for Middle-Class Families
💸 Want to Keep More of Your Hard-Earned Money? Here are the Most Tax-Friendly States for Middle-Class Families 👨👩👧👦
We feel your pain – taxes take a huge bite out of middle-class budgets these days! 😣 That’s why we dug into the data to find which states give your bank account a break. 💡Say bye to high tax burdens and keep more of your income by heading to one of these affordable havens!
First, what counts as “middle-class” when comparing taxes state-by-state? 🤔 We looked at median household incomes as a benchmark. Then we calculated the taxes paid across three categories – income, property, and sales taxes on essentials like groceries and diapers. Lower overall taxes as a percentage of income meant a higher ranking! 📊
And the winner for tax-friendliness is…Wyoming! 🏆 With no income tax and reasonable property taxes, the Cowboy State only takes 2.2% of middle-class incomes. Nevada and Tennessee took the next top spots. Read on for the full top 10 list!
🥇 Wyoming – 2.2% of income paid in taxes
🥈 Nevada – 2.8%
🥉 Tennessee – 3.4%
Join us as we unveil the states where middle-class families can experience tax relief, offering you valuable insights into how to manage your finances more efficiently and achieve your financial goals while keeping more of your income in your pocket. Whether you’re considering a relocation or simply looking to better understand the tax dynamics in your current state, this analysis will equip you with the knowledge you need to make informed financial decisions. Let’s embark on this journey to unlock tax savings and pave the way for a more prosperous future.
Wyoming 🤠
With median property taxes of $1,442 and average sales tax on essentials of $64, Wyoming residents pay just $1,506 annually. The no-income-tax and low overall rates make Wyoming the #1 most tax-friendly state at 2.2% of income.
Nevada 🎰
Nevada has median property taxes of $1,736 and averages $79 in sales tax on essentials, totaling $1,815 paid. No income tax and low property taxes give Nevada the #2 spot at 2.8% of income paid in taxes.
Tennessee 🎻
Tennessee residents pay $1,270 in median property taxes plus $732 in sales taxes on essentials, totaling $2,002 annually. The lack of income tax balances this out, making Tennessee #3 at 3.4%.
Florida ☀️
With median property taxes of $2,143, Florida takes 3.5% of income in taxes. No income tax and exemptions on essentials help offset the moderately high property taxes.
North Dakota ⛄
North Dakotans pay $2,092 in median property taxes and $17 in average sales taxes on essentials, totaling $2,937 annually. The low-income taxes combined with reasonable property taxes give North Dakota a 4.3% tax burden.
Alaska ❄️
Alaska’s high median property tax of $3,464 leads to $3,464 in total annual taxes, making up 4.3% of household income. There is no statewide income or sales tax.
Arizona 🌵
Arizonans pay $1,648 in median property taxes plus $100 in sales taxes on essentials, totaling $3,067 annually for a 4.7% burden. The income tax rates are low compared to other states.
Washington 🍎
Median property taxes of $3,752 and average sales tax of $85 leads to $3,837 in total annual taxes at 4.7% of income. The lack of income tax helps offset the higher property taxes.
South Dakota 🦅
With median property taxes of $2,331 and $652 in sales taxes on essentials, South Dakotans pay $2,983 overall at 4.7% of income. No income tax balances the higher essential sales taxes.
Louisiana 🎷
Louisiana’s low median property tax of $983 leads to a total tax burden of $2,642 annually, making up 4.9% of household income. No taxes on groceries help minimize the sales tax impact.
📞 At Zara Financials, our goal is to help our clients maximize savings and take control of their hard-earned money. Our financial expertise can assess your situation and identify the best state for you to call home based on tax burdens, cost of living, salary potential, and more. We’ll work with you to minimize the taxes you pay while optimizing your quality of life.
