[Latest News] Credit Counseling News: These Are The U.S. States With The Lowest Taxes

These Are The U.S. States With The Lowest Taxes

They say that location is the most important aspect of buying a home, but this does not apply to just real estate. Where you live can have a major impact on your cost of living and the ability to make ends meet. Tax rate is a driving force in determining this.

For many people who move to different states, job opportunities are usually the deciding factor but those who have some power over where they live can take advantage of lower tax states. A variety of taxes, from property to inheritance and excise, can have a large impact on your finances. Here are the states with the lowest tax rates. Is your home one of them?

Alabama Has A Low Cost Of Living And Low Taxes

Jeffrey Greenberg/Univesal Images Group via Getty Images

Jeffrey Greenberg/Univesal Images Group via Getty Images

The state of Alabama is known for its low cost of living and is considered to be a tax-friendly state. The income levels in the state are quite moderate and it doesn’t take too much to find yourself in the highest income tax bracket. You are also allowed to deduct your federal income taxes.

The state income tax is set at 2 percent and 5 percent for more than $6,000 of taxable income. For homes that have an average value of $100,000, the property taxes are $432. The local sales tax in Alabama is 9.16 percent and the price of gas is 0.2721 per gallon.

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