In this debilitating and volatile economy, people are in the knack to find ways to live smartly. While there is no apparent reason to bail out of this incomprehensible situation, one can opt to choose to live in another state that offers friendlier tax schemes than the rest and also avoid the states that could eat up their money's worth.
Kiplinger details the worst three states in the U.S. for taxes that people can avoid living in.
1. California
California may offer that warmth and comfort for people living in the other neighboring states but they may also surprise newcomers with their high taxes in terms of income, sales, and gas taxes.
"California also has the highest statewide sales tax, at 7.5%," according to Kiplinger. "The average state and local combined rate is 8.4%; in some cities, the combined rate is as high as 10%. (Food and prescription drugs are exempt.)"
Meanwhile, the outlet also informed that the gas tax in California is also the fourth highest in the U.S. and there is even a bigger potential that it will blow up more in the future due to some projects that the state's legislators are planning.
2. Connecticut
The second most least friendly in the ranking is Connecticut and if you're the type of person who loves to buy goods and products such as clothes, merchandise, or other stuff, this state is a definite no-no for you as it requires tax on almost all goods priced under $50.
"As of July 1, clothing and shoes under $50 are no longer exempt from the state sales tax. Luxury items, such as jewelry worth more than $5,000, are taxed at 7.8%, which means a $6,000 engagement ring would cost you $6,465," as detailed in the article. "And if those baubles are a gift, keep in mind that Connecticut is also one of only two states with a gift tax (the other is Minnesota), which applies to real and tangible personal property in Connecticut and intangible personal property anywhere for permanent residents."
3. New Jersey
New Jersey is no friend for people who are choosing to buy a property in this city. Although, this city is friendlier for commuters because of their second to the lowest gas taxes, its property tax is the highest in the entire country.
According to the publication, "The median property tax on the state's median home value of $307,700 is $7,331."
