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Experts analyzed tax rules in different North American countries to find out where the lowest taxes are. This article will focus on the United States and Canada as more developed countries.

Where are the lowest taxes in the USA: top 10 states

  1. Delaware

First on the list was a state that has no sales levy. Income levy ranges from 2.2% to 6.6%. Average property tax rate is $ 1,078. The excise levies on wine (97 cents / gallon) and beer (16 cents / gallon) are also encouraging. But you must pay $ 1.60 for one pack of Mallboro.

  1. Wyoming

The reason why residents of Wyoming can boast of one of the lowest tax burdens in the country is because of the profits from the extraction of minerals and oil. There is no income levy, sales levy is only 4%, and only $ 0.24 is paid per gallon of fuel. Food and prescription drugs are exempt from government charges. Median property levy is $ 1,058.

  1. Louisiana

Income charge is from 2% ($ 12,500 income) to 6% ($ 50,000 or more). Sales levy is 4%, fuel tax is $ 0.20 per gallon.

Another benefit is the property levy of only $ 243.

  1. Mississippi

Income charge for residents of the state 3-5%, on sales 7%, per gallon of fuel $ 0.19.

Property tax is of $ 508, one of the lowest in the United States. You do not need to pay levies on utilities and prescription drugs. But it is one of the few states that has a grocery sales tax. The sale of a car is charged 5%.

  1. Arizona

The fifth state on the list has a moderate income levy of 2.59% -4.54% (if the income is not more than 150 thousand for a single person and 300 thousand for a family). Sales levy is 5.6%, $ 0.19 per gallon of fuel.

Average property tax rate is $ 1,356. Transport licenses are subject to an annual charge that is calculated based on the assessed value. For new vehicles, the rate will be $ 2.80 for every $ 100, for used vehicles – $ 2.89.

  1. Alabama

Income levy is from 2% to 5%, on sales 4%. There is a charge on the sale of food, but there is a low rate on cigarettes, with only 43 cents per pack. Housing tax is on average $ 398.

  1. Nevada

One of 9 states that has absolutely no income tax, 6.5% on sales (can be increased by 1.25%), fuel levy (per gallon) is $ 0.33.

Median property charge paid $ 1,749. Introduced levy on transport (annual), calculated depending on its price and age.

  1. South Carolina

Income tax is from 3% to 7% (up to $ 14,250). Sales charge is only 6%.

Property tax $ 689. The annual levy on vehicles costing, for example, $ 10 thousand will be $ 268.

  1. New Mexico

The minimum income tax rate is 1.7%, the maximum is 4.9% (more than $ 16,000 for singles and $ 24,000 for married couples). Sales levy is just over 5%.

Property charge is $ 880.

  1. West Virginia

The amount of income tax is from 3% to 6.5%, on sales (except food) – 6%.

Property levy is moderate, $ 464. Transportation is taxed at 5%, and 18 cents will be deducted for every gallon of beer.

It is important to bear in mind that a lower tax in North America does not mean a higher standard of living. The state will have less money that could potentially be spent on important areas, such as medicine or education.

Where are the lowest taxes in Canada

Tax rates range from 5% to 15%.

In Canada, taxes are paid on everything from the roads we drive to our healthcare. This is the inevitable cost of living in modern society. But that doesn’t mean we like paying taxes.

Provincial taxes, such as sales and income taxes, are the biggest determinants of how much you pay. Sales taxes range from 5% in Alberta to 15% in Atlantic Canada and Quebec. Income charges are just as varied. Someone making $ 50,000 in British Columbia can expect to pay roughly $ 8,300 in income tax without making any concessions or write-offs, while those in the same situation in Quebec will have to pay more 2600 dollars.

Property charges can vary greatly between neighboring cities. Drive through Rouge Valley from Toronto to Pickering and see the property tax rate increase from 1.69% to 2.75%. In dollar terms, this difference is over $ 2,000 per year for most families.

Remember the tax situation, it’s not just a question of who pays how much, but also how much of the burden taxes are placing on Canadians. The $ 2,000 property tax amount will not affect a high-income family, but it can impose a huge burden on some families earning less than the national average.

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