Special Report

The Most Tax-Friendly States for the Rich

Source: Sean Pavone / Getty Images

30. Arkansas
> Effective tax rate for top 1% of earners: 6.9%
> Effective tax rate for middle 20% of earners: 10.8% (10th highest)
> Avg. income for top 1%: $1.13 million (23rd lowest)
> State & local tax revenue from sales taxes: 37.5% (8th highest)
> State & local tax revenue from income taxes: 23.5% (25th highest)

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Source: Sean Pavone / Getty Images

29. South Carolina
> Effective tax rate for top 1% of earners: 6.8%
> Effective tax rate for middle 20% of earners: 8.1% (6th lowest)
> Avg. income for top 1%: $992,300 (9th lowest)
> State & local tax revenue from sales taxes: 22.1% (22nd lowest)
> State & local tax revenue from income taxes: 22.7% (22nd lowest)

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28. Indiana
> Effective tax rate for top 1% of earners: 6.8%
> Effective tax rate for middle 20% of earners: 11.1% (6th highest)
> Avg. income for top 1%: $1.01 million (11th lowest)
> State & local tax revenue from sales taxes: 28.4% (16th highest)
> State & local tax revenue from income taxes: 25.5% (21st highest)

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Source: SeanPavonePhoto / Getty Images

27. Mississippi
> Effective tax rate for top 1% of earners: 6.7%
> Effective tax rate for middle 20% of earners: 10.8% (11th highest)
> Avg. income for top 1%: $802,200 (2nd lowest)
> State & local tax revenue from sales taxes: 30.6% (15th highest)
> State & local tax revenue from income taxes: 16.7% (13th lowest)

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26. Kentucky
> Effective tax rate for top 1% of earners: 6.7%
> Effective tax rate for middle 20% of earners: 11.1% (5th highest)
> Avg. income for top 1%: $935,400 (5th lowest)
> State & local tax revenue from sales taxes: 20.4% (20th lowest)
> State & local tax revenue from income taxes: 33.3% (4th highest)

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