10 Most Tax-Friendly States

There are several different kinds of taxes Americans pay. Of course, residents of all 50 states are subject to federal income taxes, but individual states have varying degrees of state and/or local income taxes, sales taxes, and property taxes.

To level the playing field, we can look at a metric known as “Tax Freedom Day.” This is the date when the average resident of a certain area has earned enough money from work to cover all federal, state, and local taxes. For the average American, Tax Freedom Day is April 19, but residents of some states can cover their tax burden far earlier.

With that, here are the most tax-friendly states in the U.S., based on data compiled by the Tax Foundation.