If you're looking for the best place to live with low taxes, you have to consider all types of taxes and decide what makes a place ideal for your situation. Some people want a place with low unemployment while others want a great school system or a delightful climate. Finding the best place to live depends on your parameters and needs. These five cities offer a great place to live in addition to low taxes.
Sioux Falls, South Dakota
In number one spot as the best place to live with low taxes is Sioux Falls, South Dakota. The unemployment rate is half that of the nation. It's one of the nation's fastest growing clean energy communities and according to "Outdoor Life" is ranked 16th in the nation as one of the "Top 200 Towns for Sportsmen." The state has no income tax. While there is property tax in South Dakota, according to the Tax Foundation, the rate of taxation makes the state the 13th best in the nation. As of 2010, South Dakota imposed no estate tax.
Cheyenne, Wyoming, scooped up the number two position because of an unemployment rate 2 percent lower than the national average and a violent crime rate one-third the national rate. The natural beauty of the area and the local activities, including a civic center and community college, offer something for everyone. Wyoming is another state without income tax. The sales tax is also small statewide, with only a 4 percent rate. Property tax is relatively low because the property is assessed at 9.5 percent of the market value.
Juneau, Alaska, is number three on the list. You won't pay income tax in Alaska. In fact, you receive a check from the government as part of the oil stipend, just because you're a citizen of Alaska. For the outdoors man or woman, activities range from kayaking to whale watching. The violent crime rate in Juneau is about half the national average. The unemployment rate was approximately 6 percent, close to half the national rate, in 2011. Inheritance or estate taxes are not imposed in Alaska, and you will pay the lowest gas tax of all the states. The daily high temperature averages a chilly 45 degrees in the summer and 4 degrees in the winter, which is only attractive for those loving cool weather and contributes to Juneau's lower rating.
The number four position is occupied by Bellevue, Washington. Besides having lower unemployment than the national average and a view that's magnificent, Bellevue also has schools that rank top in the state year after year. Washington has no state income tax. As of 2010, no estate tax was imposed, and the property tax rate ranked 19th lowest in the nation.
Coral Springs, Florida
Number five is Coral Springs, Florida. Coral Springs offers sunshine and warm weather in addition to a low crime rate. While the unemployment is about the same as the national average, it's less than the average for Florida. The sunny climate of Coral Springs is inviting but so is the tax climate. You would pay no state income tax, but other taxes might put a dent in your budget. The state sales tax is 6 percent. Florida ranks 28th best in the nation on property tax, so it sits right in the middle of the pack. The tax on gasoline is $0.34 a gallon, which is also about the middle of the road, nationwide.
- Tax Foundation; Tax Data; October, 2010
- Google: Unemployment Rate Chart
- HomeSurfer.com: Crime Reports
- Tax Foundation; State Sales, Gasoline, Cigarette and Alcohol Taxes; February 2010
- Kiplinger: Retiree Tax Heavens (and Hells); October 2010
- MSN Money; Kiplinger; Best, Worst States for Retiree Taxes; November 2010
- Ablestock.com/AbleStock.com/Getty Images