Anchorage, Alaska, is considered one of the most tax-friendly cities in the US, as it imposes no local sales tax and the state has no income tax. While Alaska has no statewide sales tax, other cities in the state may have local sales taxes. Other cities in states with no sales tax, like Portland, Oregon, also offer significant tax advantages.
Portland, Oregon, and Anchorage, Alaska, have no state or local sales taxes. Richmond, Virginia has 5.3 percent state sales tax. Honolulu, Hawaii, has a low sales tax rate of 4.5 percent, but the tax applies broadly to goods and services when compared with sales tax from other locations.
Nine U.S. states levy no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Sales, property, and excise taxes can be higher in states with no income tax as a trade-off to fund important government services.
Nine U.S. states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, though Washington does tax long-term capital gains, and New Hampshire is phasing out its interest/dividend tax. However, a lack of income tax doesn't mean lower overall taxes, as these states often rely on higher sales, property, or other specific taxes, like Florida's high homeowners' insurance or Texas's property taxes, to fund services, so consider the total tax burden, not just income tax.
The United States Government does not refund sales tax to foreign visitors. The foreign country in which you paid the Value Added Tax (VAT) is responsible for refunding the tax. Some countries won't refund after the fact, so check with the Foreign Embassies & Consulates office of the country you visited.
The lowest sales tax in the U.S. is 0% in states like Delaware, Montana, New Hampshire, and Oregon, which have no statewide sales tax; however, Alaska has the lowest average combined rate (around 1.82%) due to some local taxes, while Hawaii's 4% General Excise Tax (GET) is also very low, acting like a sales tax but applying to services too, notes Stripe, TurboTax, Tax Foundation, and Avalara.
How Florida Has No Income Tax. In 1968, the Florida Constitution was ratified to prevent the state from collecting an income tax. And the state constitution protects taxpayers from having the state impose new taxes or raise them.
Free federal and state filing
For anyone with an AGI under $51,000. If you don't qualify, your federal return is free and state filing is $15.99.
If you paid more through the year than you owe in tax, you may get money back. Even if you didn't pay tax, you may still get a refund if you qualify for a refundable credit. To get your refund, you must file a return. You have 3 years to claim a tax refund.
California has the nation's highest individual income tax rates and high sales tax burdens compared to the rest of the country. In general, the state has low property tax rates for residents who have owned a home for a long time. Newer residents, or people who have moved, have a much higher property tax burden.
TaxHawk, Inc., owner of FreeTaxUSA.com, was founded in 2001 and is an authorized IRS e-file provider.
That's Sikkim... An Indian safe haven, where even a crorepati pays no taxes! Sikkim has always operated under its own tax laws, allowing its residents to live free of income tax. But a 2023 Supreme Court Judgement just made this status even more beneficial.
Nevada, Washington, Texas, Florida, Tennessee, Wyoming, Alaska, South Dakota and New Hampshire.
The assessment of an individual state income tax is prohibited by the Florida Constitution, so residents are free from state income tax liabilities.
There's no general sales tax in Alaska, Delaware, Montana, New Hampshire, or Oregon, though Alaska allows local sales taxes.
There isn't one single "highest tax paying country" as it depends on what's measured (income, corporate, total tax revenue), but countries like Denmark, Finland, Japan, and Ivory Coast (Côte d'Ivoire) consistently rank highest for top personal income tax rates, often exceeding 50-60%, while nations like Belgium can have the highest overall tax burden on labor (tax wedge) for average earners, with high social security. Nordic countries and some European nations generally have high income taxes, funding extensive social services.