It is no secret that some states have a much friendlier tax climate than others. Several states levy no income tax, for example, and manage to attract Americans who prefer to pay less in taxes (you still need to pay federal income tax). Other states don’t have corporate income tax in order to attract businesses.

Ans these are but a two of the taxes states levy. Others include sales tax, inheritance or estate tax, capital gains tax, and more. Localities, too, often have their own sales taxes. Which states, then, have the best taxes?

To answer that, Greenback Expat Tax Services gathered information from several sources on income tax, sales tax, inheritance tax, corporate tax, and capital gains tax rates to arrive at an overall tax score out of 100, with 100 being the most friendly. The study, Countries and States With the Best Tax Rates, notes that the data was updated in February 2024. 24/7 Wall St. added data on personal income per capita from the Bureau of Economic Analysis and state total tax collections (including property taxes, sales and gross receipts taxes, license taxes, income taxes, and other taxes) from the Census Bureau. We used population data to calculate per capita collection.

Based on Greenback’s study, Wyoming, South Dakota, Alaska, New Hampshire, and Texas have the most favorable tax rates, “making them attractive destinations for both individuals and businesses seeking tax efficiency,” according to the study. The tax burden in these states is reduced, aiming to encourage economic growth.

While eight states — Alaska, Wyoming, South Dakota, Florida, Texas, Washington, Nevada, and Tennessee — levy no income tax, five — Alaska, Delaware, Montana, New Hampshire, and Oregon — impose no sales tax. When it comes to corporate income tax, six states — Nevada, Wyoming, South Dakota, Texas, Ohio, and Washington state — do not impose such a tax.

Why This Matters

Tax burden in the U.S. varies greatly depending on the state. Lower taxes often help attract investors, individuals, and businesses, therefore contributing to economic growth and to shaping the financial environment of a state. For example, a lower sales tax can encourage spending of both businesses and individuals, while a lower income tax can attract residents and/or corporations. If you’re looking for a better tax climate, this list can help narrow the search.

50. California

• Overall tax score: 29.64 out of 100
• Maximum personal income tax rate: 13.30% — the highest
• State sales tax rate: 7.25% — the highest
• Maximum corporate income tax rate: 8.84% — 7th highest
• Personal income per capita, 2023: $80,423 — 4th highest
• State tax collection per capita, 2023: $5,661 — 11th highest
• Total population, 2023: 38,965,193

49. New Jersey

• Overall tax score: 30.42 out of 100
• Maximum personal income tax rate: 10.75% — 4th highest
• State sales tax rate: 6.63% — 8th highest
• Maximum corporate income tax rate: 11.50% — the highest
• Personal income per capita, 2023: $80,724 — 3rd highest
• State tax collection per capita, 2023: $5,562 — 12th highest
• Total population, 2023: 9,290,841

48. New York

• Overall tax score: 31.99 out of 100
• Maximum personal income tax rate: 10.90% — 3rd highest
• State sales tax rate: 4% — 7th lowest (tied)
• Maximum corporate income tax rate: 7.25% — 19th highest
• Personal income per capita, 2023: $79,581 — 6th highest
• State tax collection per capita, 2023: $6,397 — 5th highest
• Total population, 2023: 19,571,216

47. Minnesota

• Overall tax score: 32.77 out of 100
• Maximum personal income tax rate: 9.85% — 6th highest
• State sales tax rate: 6.88% — 6th highest
• Maximum corporate income tax rate: 9.80% — 2nd highest
• Personal income per capita, 2023: $71,866 — 13th highest
• State tax collection per capita, 2023: $6,008 — 8th highest
• Total population, 2023: 5,737,915

46. Vermont

• Overall tax score: 40.48 out of 100
• Maximum personal income tax rate: 8.75% — 8th highest
• State sales tax rate: 6% — 25th lowest (tied)
• Maximum corporate income tax rate: 8.50% — 9th highest
• Personal income per capita, 2023: $66,463 — 21st highest
• State tax collection per capita, 2023: $6,948 — 3rd highest
• Total population, 2023: 647,464

45. Massachusetts

• Overall tax score: 40.64 out of 100
• Maximum personal income tax rate: 9% — 7th highest
• State sales tax rate: 6.25% — 15th highest (tied)
• Maximum corporate income tax rate: 8% — 12th highest
• Personal income per capita, 2023: $87,812 — the highest
• State tax collection per capita, 2023: $5,942 — 9th highest
• Total population, 2023: 7,001,399

44. Illinois

• Overall tax score: 43.15 out of 100
• Maximum personal income tax rate: 4.95% — 23rd lowest (tied)
• State sales tax rate: 6.25% — 15th highest (tied)
• Maximum corporate income tax rate: 9.50% — 3rd highest
• Personal income per capita, 2023: $70,953 — 15th highest
• State tax collection per capita, 2023: $5,019 — 13th highest
• Total population, 2023: 12,549,689

43. Hawaii

• Overall tax score: 43.43 out of 100
• Maximum personal income tax rate: 11% — 2nd highest
• State sales tax rate: 4% — 7th lowest (tied)
• Maximum corporate income tax rate: 6.40% — 25th lowest
• Personal income per capita, 2023: $65,151 — 25th lowest
• State tax collection per capita, 2023: $7,099 — 2nd highest
• Total population, 2023: 1,435,138

42. Nebraska

• Overall tax score: 46.88 out of 100
• Maximum personal income tax rate: 6.64% — 13th highest
• State sales tax rate: 5.50% — 21st lowest (tied)
• Maximum corporate income tax rate: 7.25% — 19th highest
• Personal income per capita, 2023: $67,800 — 19th highest
• State tax collection per capita, 2023: $3,703 — 18th lowest
• Total population, 2023: 1,978,379

41. Rhode Island

• Overall tax score: 47.80 out of 100
• Maximum personal income tax rate: 5.99% — 18th highest
• State sales tax rate: 7% — 5th highest (tied)
• Maximum corporate income tax rate: 7% — 21st highest
• Personal income per capita, 2023: $66,480 — 20th highest
• State tax collection per capita, 2023: $4,324 — 22nd highest
• Total population, 2023: 1,095,962

40. Connecticut

• Overall tax score: 48.31 out of 100
• Maximum personal income tax rate: 6.99% — 11th highest
• State sales tax rate: 6.35% — 12th highest
• Maximum corporate income tax rate: 7.50% — 17th highest
• Personal income per capita, 2023: $87,447 — 2nd highest
• State tax collection per capita, 2023: $6,053 — 7th highest
• Total population, 2023: 3,617,176

39. Maine

• Overall tax score: 48.36 out of 100
• Maximum personal income tax rate: 7.15% — 10th highest
• State sales tax rate: 5.50% — 21st lowest (tied)
• Maximum corporate income tax rate: 8.93% — 6th highest
• Personal income per capita, 2023: $63,117 — 21st lowest
• State tax collection per capita, 2023: $4,614 — 17th highest
• Total population, 2023: 1,395,722

38. Maryland

• Overall tax score: 49.56 out of 100
• Maximum personal income tax rate: 5.75% — 23rd highest (tied)
• State sales tax rate: 6% — 25th lowest (tied)
• Maximum corporate income tax rate: 8.25% — 11th highest
• Personal income per capita, 2023: $73,849 — 10th highest
• State tax collection per capita, 2023: $4,805 — 16th highest
• Total population, 2023: 6,180,253

37. Missouri

• Overall tax score: 50.11 out of 100
• Maximum personal income tax rate: 4.95% — 23rd lowest (tied)
• State sales tax rate: 4.22% — 13th lowest
• Maximum corporate income tax rate: 4% — 8th lowest
• Personal income per capita, 2023: $61,302 — 17th lowest
• State tax collection per capita, 2023: $2,801 — 3rd lowest
• Total population, 2023: 6,196,156

36. Iowa

• Overall tax score: 51.47 out of 100
• Maximum personal income tax rate: 6% — 17th highest
• State sales tax rate: 6% — 25th lowest (tied)
• Maximum corporate income tax rate: 8.40% — 10th highest
• Personal income per capita, 2023: $62,351 — 19th lowest
• State tax collection per capita, 2023: $4,043 — 23rd lowest
• Total population, 2023: 3,207,004

35. Kansas

• Overall tax score: 52.56 out of 100
• Maximum personal income tax rate: 5.70% — 24th highest
• State sales tax rate: 6.50% — 11th highest (tied)
• Maximum corporate income tax rate: 7% — 21st highest
• Personal income per capita, 2023: $63,732 — 22nd lowest
• State tax collection per capita, 2023: $4,468 — 18th highest
• Total population, 2023: 2,940,546

34. Louisiana

• Overall tax score: 54.57 out of 100
• Maximum personal income tax rate: 4.25% — 15th lowest (tied)
• State sales tax rate: 4.45% — 14th lowest
• Maximum corporate income tax rate: 7.50% — 17th highest
• Personal income per capita, 2023: $57,100 — 8th lowest
• State tax collection per capita, 2023: $3,389 — 13th lowest
• Total population, 2023: 4,573,749

33. Wisconsin

• Overall tax score: 54.74 out of 100
• Maximum personal income tax rate: 7.65% — 9th highest
• State sales tax rate: 5% — 18th lowest (tied)
• Maximum corporate income tax rate: 7.90% — 13th highest
• Personal income per capita, 2023: $63,963 — 24th lowest
• State tax collection per capita, 2023: $4,017 — 22nd lowest
• Total population, 2023: 5,910,955

32. Alabama

• Overall tax score: 54.80 out of 100
• Maximum personal income tax rate: 5% — 25th lowest (tied)
• State sales tax rate: 4% — 7th lowest (tied)
• Maximum corporate income tax rate: 6.50% — 25th highest
• Personal income per capita, 2023: $53,175 — 3rd lowest
• State tax collection per capita, 2023: $3,272 — 10th lowest
• Total population, 2023: 5,108,468

31. Arkansas

• Overall tax score: 55.22 out of 100
• Maximum personal income tax rate: 4.90% — 22nd lowest
• State sales tax rate: 6.50% — 11th highest (tied)
• Maximum corporate income tax rate: 5.30% — 18th lowest
• Personal income per capita, 2023: $54,347 — 5th lowest
• State tax collection per capita, 2023: $4,159 — 25th lowest
• Total population, 2023: 3,067,732

30. Pennsylvania

• Overall tax score: 55.33 out of 100
• Maximum personal income tax rate: 3.07% — 11th lowest
• State sales tax rate: 6% — 25th lowest (tied)
• Maximum corporate income tax rate: 8.99% — 5th highest
• Personal income per capita, 2023: $67,839 — 18th highest
• State tax collection per capita, 2023: $4,249 — 25th highest
• Total population, 2023: 12,961,683

29. Oregon

• Overall tax score: 56.03 out of 100
• Maximum personal income tax rate: 9.90% — 5th highest
• State sales tax rate: 0% — the lowest (tied)
• Maximum corporate income tax rate: 7.60% — 14th highest
• Personal income per capita, 2023: $65,426 — 22nd highest
• State tax collection per capita, 2023: $4,932 — 14th highest
• Total population, 2023: 4,233,358

28. South Carolina

• Overall tax score: 56.31 out of 100
• Maximum personal income tax rate: 6.50% — 16th highest (tied)
• State sales tax rate: 6% — 25th lowest (tied)
• Maximum corporate income tax rate: 5% — 15th lowest
• Personal income per capita, 2023: $56,123 — 7th lowest
• State tax collection per capita, 2023: $2,912 — 6th lowest
• Total population, 2023: 5,373,555

27. West Virginia

• Overall tax score: 56.51 out of 100
• Maximum personal income tax rate: 6.50% — 16th highest (tied)
• State sales tax rate: 6% — 25th lowest (tied)
• Maximum corporate income tax rate: 6.50% — 25th highest
• Personal income per capita, 2023: $52,585 — 2nd lowest
• State tax collection per capita, 2023: $4,316 — 23rd highest
• Total population, 2023: 1,770,071

26. New Mexico

• Overall tax score: 56.80 out of 100
• Maximum personal income tax rate: 5.90% — 19th highest
• State sales tax rate: 4.88% — 17th lowest
• Maximum corporate income tax rate: 5.90% — 22nd lowest
• Personal income per capita, 2023: $54,428 — 6th lowest
• State tax collection per capita, 2023: $6,748 — 4th highest
• Total population, 2023: 2,114,371

25. Kentucky

• Overall tax score: 57.08 out of 100
• Maximum personal income tax rate: 4.50% — 18th lowest
• State sales tax rate: 6% — 25th lowest (tied)
• Maximum corporate income tax rate: 5% — 15th lowest
• Personal income per capita, 2023: $54,326 — 4th lowest
• State tax collection per capita, 2023: $3,804 — 20th lowest
• Total population, 2023: 4,526,154

24. Georgia

• Overall tax score: 58.22 out of 100
• Maximum personal income tax rate: 5.75% — 23rd highest (tied)
• State sales tax rate: 4% — 7th lowest (tied)
• Maximum corporate income tax rate: 5.75% — 20th lowest
• Personal income per capita, 2023: $58,581 — 10th lowest
• State tax collection per capita, 2023: $3,056 — 7th lowest
• Total population, 2023: 11,029,227

23. Oklahoma

• Overall tax score: 59.14 out of 100
• Maximum personal income tax rate: 4.75% — 19th lowest (tied)
• State sales tax rate: 4.50% — 15th lowest
• Maximum corporate income tax rate: 4% — 8th lowest
• Personal income per capita, 2023: $58,499 — 9th lowest
• State tax collection per capita, 2023: $3,415 — 14th lowest
• Total population, 2023: 4,053,824

22. Washington

• Overall tax score: 59.88 out of 100
• Maximum personal income tax rate: 0% — the lowest (tied)
• State sales tax rate: 6.50% — 11th highest (tied)
• Maximum corporate income tax rate: 0% — the lowest
• Personal income per capita, 2023: $79,659 — 5th highest
• State tax collection per capita, 2023: $4,867 — 15th highest
• Total population, 2023: 7,812,880

21. Idaho

• Overall tax score: 60.57 out of 100
• Maximum personal income tax rate: 5.80% — 20th highest
• State sales tax rate: 6% — 25th lowest (tied)
• Maximum corporate income tax rate: 5.80% — 21st lowest
• Personal income per capita, 2023: $59,035 — 11th lowest
• State tax collection per capita, 2023: $3,759 — 19th lowest
• Total population, 2023: 1,964,726

20. Mississippi

• Overall tax score: 60.86 out of 100
• Maximum personal income tax rate: 5% — 25th lowest (tied)
• State sales tax rate: 7% — 5th highest (tied)
• Maximum corporate income tax rate: 5% — 15th lowest
• Personal income per capita, 2023: $48,110 — the lowest
• State tax collection per capita, 2023: $3,514 — 15th lowest
• Total population, 2023: 2,939,690

19. Virginia

• Overall tax score: 61.30 out of 100
• Maximum personal income tax rate: 5.75% — 23rd highest (tied)
• State sales tax rate: 5.30% — 20th lowest
• Maximum corporate income tax rate: 6% — 23rd lowest
• Personal income per capita, 2023: $72,855 — 12th highest
• State tax collection per capita, 2023: $4,259 — 24th highest
• Total population, 2023: 8,715,698

18. Utah

• Overall tax score: 61.46 out of 100
• Maximum personal income tax rate: 4.85% — 21st lowest
• State sales tax rate: 6.10% — 16th highest
• Maximum corporate income tax rate: 4.85% — 12th lowest
• Personal income per capita, 2023: $62,823 — 20th lowest
• State tax collection per capita, 2023: $3,947 — 21st lowest
• Total population, 2023: 3,417,734

17. Colorado

• Overall tax score: 62.98 out of 100
• Maximum personal income tax rate: 4.40% — 17th lowest
• State sales tax rate: 2.90% — 6th lowest
• Maximum corporate income tax rate: 4.40% — 11th lowest
• Personal income per capita, 2023: $78,918 — 7th highest
• State tax collection per capita, 2023: $3,085 — 8th lowest
• Total population, 2023: 5,877,610

16. Michigan

• Overall tax score: 64.44 out of 100
• Maximum personal income tax rate: 4.25% — 15th lowest (tied)
• State sales tax rate: 6% — 25th lowest (tied)
• Maximum corporate income tax rate: 6% — 23rd lowest
• Personal income per capita, 2023: $59,714 — 12th lowest
• State tax collection per capita, 2023: $3,699 — 17th lowest
• Total population, 2023: 10,037,261

15. Arizona

• Overall tax score: 64.95 out of 100
• Maximum personal income tax rate: 2.50% — 9th lowest
• State sales tax rate: 5.60% — 23rd lowest
• Maximum corporate income tax rate: 4.90% — 13th lowest
• Personal income per capita, 2023: $61,652 — 18th lowest
• State tax collection per capita, 2023: $3,144 — 9th lowest
• Total population, 2023: 7,431,344

14. North Carolina

• Overall tax score: 65.76 out of 100
• Maximum personal income tax rate: 4.75% — 19th lowest (tied)
• State sales tax rate: 4.75% — 16th lowest
• Maximum corporate income tax rate: 2.50% — 7th lowest
• Personal income per capita, 2023: $60,484 — 15th lowest
• State tax collection per capita, 2023: $3,594 — 16th lowest
• Total population, 2023: 10,835,491

13. Indiana

• Overall tax score: 66.01 out of 100
• Maximum personal income tax rate: 3.15% — 12th lowest
• State sales tax rate: 7% — 5th highest (tied)
• Maximum corporate income tax rate: 4.90% — 13th lowest
• Personal income per capita, 2023: $60,038 — 13th lowest
• State tax collection per capita, 2023: $4,419 — 21st highest
• Total population, 2023: 6,862,199

12. Tennessee

• Overall tax score: 66.12 out of 100
• Maximum personal income tax rate: 0% — the lowest (tied)
• State sales tax rate: 7% — 5th highest (tied)
• Maximum corporate income tax rate: 6.50% — 25th highest
• Personal income per capita, 2023: $61,049 — 16th lowest
• State tax collection per capita, 2023: $3,342 — 12th lowest
• Total population, 2023: 7,126,489

11. North Dakota

• Overall tax score: 68.08 out of 100
• Maximum personal income tax rate: 2.90% — 10th lowest
• State sales tax rate: 5% — 18th lowest (tied)
• Maximum corporate income tax rate: 4.31% — 10th lowest
• Personal income per capita, 2023: $73,341 — 11th highest
• State tax collection per capita, 2023: $7,716 — the highest
• Total population, 2023: 783,926

10. Ohio

• Overall tax score: 70.08 out of 100
• Maximum personal income tax rate: 3.99% — 13th lowest
• State sales tax rate: 5.75% — 24th lowest
• Maximum corporate income tax rate: 0% — the lowest
• Personal income per capita, 2023: $60,402 — 14th lowest
• State tax collection per capita, 2023: $3,288 — 11th lowest
• Total population, 2023: 11,785,935

9. Delaware

• Overall tax score: 71.28 out of 100
• Maximum personal income tax rate: 6.60% — 14th highest
• State sales tax rate: 0% — the lowest (tied)
• Maximum corporate income tax rate: 8.70% — 8th highest
• Personal income per capita, 2023: $65,392 — 24th highest
• State tax collection per capita, 2023: $6,361 — 6th highest
• Total population, 2023: 1,031,890

8. Montana

• Overall tax score: 73.43 out of 100
• Maximum personal income tax rate: 6.75% — 12th highest
• State sales tax rate: 0% — the lowest (tied)
• Maximum corporate income tax rate: 6.75% — 22nd highest
• Personal income per capita, 2023: $63,918 — 23rd lowest
• State tax collection per capita, 2023: $4,158 — 24th lowest
• Total population, 2023: 1,132,812

7. Florida

• Overall tax score: 73.84 out of 100
• Maximum personal income tax rate: 0% — the lowest (tied)
• State sales tax rate: 6% — 25th lowest (tied)
• Maximum corporate income tax rate: 5.50% — 19th lowest
• Personal income per capita, 2023: $68,248 — 17th highest
• State tax collection per capita, 2023: $2,738 — 2nd lowest
• Total population, 2023: 22,610,726

6. Nevada

• Overall tax score: 77.79 out of 100
• Maximum personal income tax rate: 0% — the lowest (tied)
• State sales tax rate: 6.85% — 7th highest
• Maximum corporate income tax rate: 0% — the lowest
• Personal income per capita, 2023: $65,168 — 25th highest
• State tax collection per capita, 2023: $4,439 — 20th highest
• Total population, 2023: 3,194,176

5. Texas

• Overall tax score: 78.10 out of 100
• Maximum personal income tax rate: 0% — the lowest (tied)
• State sales tax rate: 6.25% — 15th highest (tied)
• Maximum corporate income tax rate: 0% — the lowest
• Personal income per capita, 2023: $65,422 — 23rd highest
• State tax collection per capita, 2023: $2,845 — 4th lowest
• Total population, 2023: 30,503,301

4. New Hampshire

• Overall tax score: 82.70 out of 100
• Maximum personal income tax rate: 4% — 14th lowest
• State sales tax rate: 0% — the lowest (tied)
• Maximum corporate income tax rate: 7.50% — 17th highest
• Personal income per capita, 2023: $77,260 — 9th highest
• State tax collection per capita, 2023: $2,530 — the lowest
• Total population, 2023: 1,402,054

3. Alaska

• Overall tax score: 83.40 out of 100
• Maximum personal income tax rate: 0% — the lowest (tied)
• State sales tax rate: 0% — the lowest (tied)
• Maximum corporate income tax rate: 9.40% — 4th highest
• Personal income per capita, 2023: $71,616 — 14th highest
• State tax collection per capita, 2023: $4,461 — 19th highest
• Total population, 2023: 733,406

2. South Dakota

• Overall tax score: 83.85 out of 100
• Maximum personal income tax rate: 0% — the lowest (tied)
• State sales tax rate: 4.20% — 12th lowest
• Maximum corporate income tax rate: 0% — the lowest (tied)
• Personal income per capita, 2023: $70,353 — 16th highest
• State tax collection per capita, 2023: $2,860 — 5th lowest
• Total population, 2023: 919,318

1. Wyoming

• Overall tax score: 85.52 out of 100
• Maximum personal income tax rate: 0% — the lowest (tied)
• State sales tax rate: 4% — 7th lowest (tied)
• Maximum corporate income tax rate: 0% — the lowest (tied)
• Personal income per capita, 2023: $77,837 — 8th highest
• State tax collection per capita, 2023: $5,730 — 10th highest
• Total population, 2023: 584,057

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