There was an interesting article in Kiplinger’s Magazine analyzing which states are the most tax-friendly. They analyzed income taxes; sales taxes; property tax; and inheritance (estate) tax. They considered for the most part those taxes that individuals and families are liable to pay.
It must be noted that the Republican majority in the North Carolina General Assembly likes to trumpet the fact that our state was made much more business-friendly since they took control a dozen years ago. That is undoubtedly true. But part of the mix they offer to businesses is incentive monies– or what some call “corporate welfare”.
According to Kiplinger’s analysis, our tax environment in North Carolina is “Mixed”– i.e., not tax-friendly. In North Carolina, compared with other states, our income taxes and sales taxes can be considerable. Our property taxes, while not extraordinarily high, are similarly considerable for those who live within the state’s largest cities.
The only three states in the eastern half of the United States that earned the description of “Most Tax-Friendly” are South Carolina, Tennessee and Delaware (yes, Delaware). Virginia, Georgia and Florida are designated as “Tax-Friendly”, i.e., one notch below the top three states.
North Carolina is surrounded by other states that rank better than we do from the standpoint of taxation– Tennessee, South Carolina, Virginia and Georgia (we share a small portion of our border with Georgia).
I think Kiplinger’s analysis rings true. Another very interesting point is that Texas is ranked among the least tax-friendly states even though there is no income tax. The sales taxes and property taxes in Texas can be much higher than in other states.
Florida and Texas have no income tax, but they find other ways to get tax monies out of citizens.
2 thoughts on “Most Tax-Friendly States in Eastern USA”
TC: I have now settled in Virginia and their taxes are comparable to NC with one exception. I was able to exclude my Federal pension from NC taxes whereas in VA I am not.
I recently observed that Mayor Vaughn wants to raise property taxes . At least I have escaped from the Peoples Republic of Greensboro. (-:
Yes, you are fortunate to have escaped.:)
One advantage in Virginia is that folks do not pay both city and county property taxes. Cities are not part of counties in Virginia. So you pay one or the other, not both. I know people who live near the Virginia state line in North Carolina will sometimes drive to Virginia to buy gasoline because the gas tax is lower, so gasoline is less expensive.
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