Want to Slash Your Tax Bill? Move to One of These 5 States

Check out some of the lowest-tax places to live in the U.S. 

For most people, there are plenty of fun things to spend money on -- but taxes are not one of them. Taxes are a necessary evil because they are the price of living in a civil society. But while they pay for essential goods and services, they can also take a big bite out of your budget.

The tax burden is not shared equally by people across the U.S., though. Some states charge far less in taxes than others. If you want to keep more money in savings and send less of your cash to your local government, here are five of the places that have the lowest tax burden in the U.S. that you may want to consider moving to. 

1. Alaska

According to the Tax Foundation, Alaska residents pay the least amount of taxes to their state of any place in the U.S. The collections per capita in Alaska total just $1,797. This is less than half of the $5,566 per capita collected in North Dakota, where residents face the highest tax burden. This is also just over half of the average collections per capita in the U.S., which come in at $3,217. 

Alaska has no state income tax or state sales tax, and the government is still able to function in large part due to the natural resources the state has, including oil and minerals. 

2. Florida

Florida residents have the second-lowest tax burden. Collections per capita total $2,002. Florida residents enjoy such a low tax obligation because there is no state income tax. There is a sales tax, and revenue collected from tourists helps cover the cost of running the state without asking much of locals. 

3.Missouri

In Missouri, state governments collect $2,016 per capita. Missouri is one of few states on the list of low tax locations that charges an income tax. However, the income tax is a graduated one with some residents paying as little as 1.5%. 

4. New Hampshire

Like Alaska, New Hampshire does not have a state income tax or a state sales tax. The state levies only business taxes, property taxes, and a "meals and rooms" tax to produce revenue. That's partly why the state collects just $2,075 per capita from residents. 

5. Texas

Finally, Texas collects just $2,093 per capita. The state, like most others with low per capita collections, does not charge an income tax although there is a sales tax and a business tax assessed. 

Each of these states asks less of residents than most places in the U.S. This can be attractive if you want to keep more of your money. 

Of course, many factors go into the decision of where to live including amenities available as well as proximity to family, friends, and work opportunities. So while you should look into these locales if you don't want to pay a lot in taxes, you should also research all that each state has to offer when deciding where to set up residence.