15 Low-Tax States to Retire to

It's difficult to figure out which states might tax us the least because there are many kinds of taxes, and each of us has different circumstances. In some states, income taxes may be high, while property and/or sales taxes may be low. What you'll pay will depend to a great degree on your home's value, your income, and how much you spend.

The folks at The Tax Foundation have calculated which states have the lowest tax burden, defined as "state and local taxes paid by a state's residents divided by that state's share of net national product." Their calculations include property taxes, general sales taxes, individual and corporate income taxes, excise taxes, license taxes, and estate, inheritance, and gift taxes, among others.

Here are the 15 states that appear to cost their residents the least in overall taxes, per the Tax Foundation's calculations. They're listed in descending order, with Alaska costing residents the least in taxes.

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The 49th and largest state, Alaska boasts the country's "largest national park, highest peak, longest coastline, … [and] longest day and night." Alaska's tax burden on its residents, at 4.6% of Alaska's share of net national product, is by far the lowest among the 50 states.

Here are some specifics: Alaska does not levy an individual income tax on its residents. Its top corporate tax rate is 9.4%. It charges no state sales tax, but its average local sales tax is 1.76%, and its state taxes on gasoline and cigarettes are $0.15 per gallon and $2 per pack, respectively. Property taxes are 1.02% of the value of owner-occupied housing.

(Note: The data for Alaska and the next 14 states comes from Tax Foundation.)

Wyoming, home to Yellowstone and Grand Teton National Parks, is known for its natural beauty and low population. The state's tax burden on its residents is 7.5% of Wyoming's share of net national product.

Wyoming does not burden its residents with an individual income tax, and it doesn't tax corporate income, either. Its state sales tax is 4%, its average local sales tax is 1.22%, and its state taxes on gasoline and cigarettes are $0.24 per gallon and $0.60 per pack, respectively. Property taxes are 0.56% of the value of owner-occupied housing.

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Tennessee is an important state for country music, Graceland, and civil rights history. Tennessee's tax burden on its residents is 7.6% of its share of net national product, the third-lowest among the 50 states.

Tennessee does not levy an individual income tax on its residents. Its top corporate tax rate is 6.5%, its state sales tax rate is 7%, and its average local sales tax is 2.55%. State taxes on gasoline and cigarettes are $0.27 per gallon and $0.62 per pack, respectively. Property taxes are 0.68% of the value of owner-occupied housing.

South Dakota is home to the Black Hills, Badlands, and Mt. Rushmore. Its tax burden on its residents is 8.4% of its share of net national product.

South Dakota doesn't charge its residents an individual or corporate income tax. Its state sales tax is 4.5%, the average local sales tax is 1.9%, and state taxes on gasoline and cigarettes are $0.30 per gallon and $1.53 per pack, respectively. Property taxes are 1.18% of the value of owner-occupied housing.

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The Great Lakes state of Michigan offers everything from beaches and outdoor recreation to Motown and the auto industry. Michigan's tax burden on its residents is 8.6% of its share of net national product.

Its top individual income tax rate is 4.25%, and its top corporate tax rate is 6%. Michigan's state sales tax rate is 6%, its combined state and average local sales tax rate is also 6%, and its state taxes on gasoline and cigarettes are $0.45 per gallon and $2 per pack, respectively. Property taxes are 1.38% of the value of owner-occupied housing.

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Texas is such a big state that it has multiple professional teams playing in the top football, baseball, and basketball leagues. Texas's tax burden on its residents is 8.6% of its share of net national product.

It does not levy an individual income tax on its residents, nor does it tax corporate profits. Texas's state sales tax is 6.25%, its average local sales tax is 1.95%, and its state taxes on gasoline and cigarettes are $0.20 per gallon and $1.41 per pack, respectively. Property taxes are 1.66% of the value of owner-occupied housing.

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North Dakota offers lots of outdoor recreational activities, such as hiking, biking, fishing, and wildlife-watching, and its museums reflect American and Native American history and culture. North Dakota's tax burden on its residents is 8.8% of its share of net national product.

The state's top individual income tax rate is 2.9%, and its top corporate tax rate is 4.31%. The North Dakota state sales tax is 5%, the average local sales tax is 1.96%, and state taxes on gasoline and cigarettes are $0.23 per gallon and $0.44 per pack, respectively. Property taxes are 0.95% of the value of owner-occupied housing.

Georgia has natural beauty and great food to offer visitors, and it's home to a few businesses you might know, such as Coca-Cola, Home Depot, United Parcel Service, and Delta Air Lines. Georgia's tax burden on its residents is 8.9% of its share of net national product.

Its top individual income tax rate is 5.75% -- the same as its corporate income tax rate. Georgia's state sales tax rate is 4%, its average local sales tax is 3.35%, and its state taxes on gasoline and cigarettes are $0.375 per gallon and $0.37 per pack, respectively. Property taxes are 0.91% of the value of owner-occupied housing.

(As a reminder, the tax rates cited for all these states come from Tax Foundation data.)

South Carolina is known by many for its beaches, natural beauty, fine Southern foods, and charming towns like Charleston. South Carolina's tax burden on its residents is 8.9% of its share of net national product.

Its top individual income tax rate is 7%, and its top corporate income tax rate is 5%. South Carolina's state sales tax rate is 6%, its average local sales tax is 1.44%, and its state taxes on gasoline and cigarettes are $0.27 per gallon and $0.57 per pack, respectively. Property taxes are 0.56% of the value of owner-occupied housing.

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You can find a lot of barbecue and fried okra in Oklahoma, as well as Native American heritage sites, a busy oil and gas industry, and, on occasion, tornadoes. Oklahoma's tax burden on its residents is 9.0% of its share of net national product.

Oklahoma's top individual income tax rate is 4.75%, and its top corporate income tax rate is 4.0%. Its state sales tax is 4.5%, its average local sales tax is 4.47%, and its state taxes on gasoline and cigarettes are $0.20 per gallon and $2.03 per pack, respectively. Property taxes are 0.88% of the value of owner-occupied housing.

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Many retirees head to Florida, and many pre-retirees love to vacation there, often concentrating on the Orlando area. (Of course, other locales, such as Miami and St. Augustine, are also of interest.) Florida's tax burden on its residents is 9.1% of its share of net national product.

Florida does not levy an individual income tax on its residents. Its top corporate tax rate is 5.5%, its state sales tax rate is 6.00%, its average local sales tax is 1.01%, and its state taxes on gasoline and cigarettes are $0.44 per gallon and $1.33 per pack, respectively. Property taxes are 0.91% of the value of owner-occupied housing.

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Louisiana is home to the fine music and food destination of New Orleans. Its tax burden on its residents is 9.1% of its share of net national product. Louisiana's top individual income tax rate is 4.25%, and its top corporate tax rate is 7.5%. Its state sales tax is 4.45%, its average local sales tax is 5.10%, and its state taxes on gasoline and cigarettes are $0.20 per gallon and $1.08 per pack, respectively. Property taxes are 0.54% of the value of owner-occupied housing.

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Among other things, Missouri is known for its barbecue, agricultural heritage, the blues, and its iconic Gateway Arch to the west. Missouri's tax burden on its residents is 9.3% of its share of net national product.

Its top individual income tax rate is 5.4%, and its top corporate income tax rate is 4%. Missouri's state sales tax is 4.23%, its average local sales tax is 4.06%, and its state taxes on gasoline and cigarettes are $0.20 per gallon and $0.17 per pack, respectively. Property taxes are 0.99% of the value of owner-occupied housing.

Indiana is known for, among other things, its enthusiasm for basketball, its breaded pork tenderloins, the Indy 500, and miles and miles of farmland. Indiana's tax burden on its residents is 9.3% of its share of net national product.

Its top individual income tax rate is 3.23%, and its top corporate tax rate is 4.9%. Indiana's state sales tax rate is 7%, its combined state and local average tax rate is also 7%, and its state taxes on gasoline and cigarettes are $0.50 per gallon and $0.99 per pack, respectively. Property taxes are 0.84% of the value of owner-occupied housing.

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Arizona is another popular retirement destination -- and a popular vacation destination, as well, thanks in part to the Grand Canyon, Sedona, and saguaro cacti, among other attractions. Arizona's tax burden on its residents is 9.5% of its share of net national product.

Its top individual income tax rate is 4.5%, and its top corporate tax rate is 4.9%. Its state sales tax rate is 5.6%, its average local sales tax is 2.8%, and its state taxes on gasoline and cigarettes are $0.19 per gallon and $2 per pack, respectively. Property taxes are 0.65% of the value of owner-occupied housing.

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As mentioned earlier, these are average tax burdens per resident, which can vary greatly by individual. If your state's income tax rate is high but your income is low, that's not going to hurt you too much. If your sales tax is high and you are an enthusiastic and frequent shopper, you'll likely pay more than a frugal neighbor on that count.

If you're considering moving to any state or city, take a close look at its tax rates and think about how they will apply to your particular situation. And, of course, consider many factors other than taxes when evaluating possible new homes.

Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Delta Air Lines and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.