The state you live in can greatly affect the amount of taxes you pay. Each state uses different state and local tax codes to fund the government. Each state is ranked. Alabama, for example, is a tax friendly state and Alaska is the most tax friendly state. In Alaska, there is no income tax, and each resident receives money from the state called the Permanent Fund Dividend. Arizona also is a tax friendly state with the state income tax having a high threshold of income before falling into the top bracket.
Key Takeaways:
- One large financial burden of living in Alabama is fully levied food
- The state of Arizona is the most tax-friendly with the top tax bracket being introduced over the $150,000 mark
- States can take liberties on income tax, gas tax, food tax and determine their own thresholds for next tax levels
“your overall state and local tax burden in one state can be thousands of dollars more (or less) than in another.”
Read more: https://www.kiplinger.com/slideshow/taxes/T054-S001-all-50-states-ranked-for-taxes-2019/index.html
