Special Report

The Most Tax-Friendly States for the Rich

Source: stellalevi / Getty Images

50. California
> Effective tax rate for top 1% of earners: 12.4%
> Effective tax rate for middle 20% of earners: 8.3% (11th lowest)
> Avg. income for top 1%: $2.16 million (5th highest)
> State & local tax revenue from sales taxes: 21.9% (21st lowest)
> State & local tax revenue from income taxes: 33.8% (3rd highest)

See all stories featuring: California

Source: Eloi_Omella / Getty Images

49. New York
> Effective tax rate for top 1% of earners: 11.3%
> Effective tax rate for middle 20% of earners: 12.4% (2nd highest)
> Avg. income for top 1%: $2.49 million (3rd highest)
> State & local tax revenue from sales taxes: 16.7% (13th lowest)
> State & local tax revenue from income taxes: 32.7% (5th highest)

See all stories featuring: New York

Source: Sean Pavone / Getty Images

48. Vermont
> Effective tax rate for top 1% of earners: 10.4%
> Effective tax rate for middle 20% of earners: 10.1% (20th highest)
> Avg. income for top 1%: $993,600 (10th lowest)
> State & local tax revenue from sales taxes: 10.4% (6th lowest)
> State & local tax revenue from income taxes: 19.8% (17th lowest)

See all stories featuring: Vermont

Source: RudyBalasko / Getty Images

47. Minnesota
> Effective tax rate for top 1% of earners: 10.1%
> Effective tax rate for middle 20% of earners: 9.7% (23rd highest)
> Avg. income for top 1%: $1.45 million (15th highest)
> State & local tax revenue from sales taxes: 17.1% (14th lowest)
> State & local tax revenue from income taxes: 31.9% (7th highest)

See all stories featuring: Minnesota

Source: Creative-Family / Getty Images

46. New Jersey
> Effective tax rate for top 1% of earners: 9.8%
> Effective tax rate for middle 20% of earners: 10.1% (19th highest)
> Avg. income for top 1%: $1.86 million (7th highest)
> State & local tax revenue from sales taxes: 15.4% (11th lowest)
> State & local tax revenue from income taxes: 22.2% (20th lowest)

See all stories featuring: New Jersey

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.