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The 10 Cities in the U.S. with the Lowest Taxes

low sales taxes cities

Corporate Relocation Services

Posted On : Dec 30, 2014

How much is it going to cost to live in your new home? Plenty of things go into the cost of living rate for a city, including the cost of healthcare, groceries, and real estate. The costs may rise and fall from place to place, but the one thing that you can’t escape is the cost of taxes. Let’s take a comprehensive look at all of the taxes in the lowest-taxed cities in the U.S.

10. Houston, Texas.Because there is no state income in Texas, Houston residents enjoy lower taxes overall. The sales tax within the city is relatively high, however, with 6.3% going to the state and an additional 2% going to the city.  A family earning $150,000 a year can expect to pay $11,737 in income taxes, the 8th lowest rate in the nation.

9. Birmingham, Alabama. The income tax for families earning $150,000 is the 10th lowest in the U.S. and property tax is very affordable: about $900 for a family of three earning $50,000 a year.

8. Honolulu, Hawaii. An effective property tax rate of only 0.35% in a city comes in handy when the property there is valued higher than most other places. Honolulu also has a relatively low sales tax rate of 4.5%.

7. Seattle, Washington.Residents of Seattle enjoy the country’s 5th lowest income tax, due largely to the fact that they don’t have to pay any state income tax. Sales tax is high, however, at 6.5% for the state and another 3% for the city.

6. Jacksonville, Florida. Families in nearly every income category pay lower-than-average property taxes in Jacksonville. Income tax for low- as well as mid-range earners is reasonable, too, with a family earning $150,000 a year paying only about $10,000 in taxes.

5. Sioux Falls, South Dakota. No state income tax in South Dakota means that Sioux Falls residents pay the 3rd lowest tax in the country, at $9,425 for families earning $150,000 per year.

4. Anchorage, Alaska. Taxes are low for everyone in Alaska. Both the tax rates for families earning less than $25,000 and families earning $150,000 are the 4th lowest in the country. Anchorage also does not have a gasoline tax, and the state’s gas tax of 8 cents a gallon is the lowest in the U.S.

3. Billings, Montana.Taxes for low-income families in Billings are the 3rd lowest in the nation, and rates for families earning $150,000 are the 7th lowest. There is no state income tax in Montana, and property taxes are low in Billings, too.

2. Las Vegas, Nevada. Taxes for families earning $150,000 more in Las Vegas enjoy the 2nd lowest income tax in the U.S., but families earning $25,000 or less pay the nation’s 24th highest tax.

1. Cheyenne, Wyoming.Taxes for low-income families in Cheyenne are the 5th lowest in the country, and families earning $150,000 pay the absolute lowest income tax in the U.S. Add to this that Cheyenne’s effective property tax is only 0.67%, and it’s clear that residents in this city enjoy a very low tax burden.

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