South Dakota has the lowest overall tax rate and it will show up if you want the kinds of services that taxes pay for. They also have nasty winters that make the tax burden in my state of California much more tolerable.
WalletHub has actually researched this and published findings in 2015's Best & Worst States to be a Taxpayer. The beauty of the study is it doesn't simply measure state income tax but also includes real estate property tax, vehicle property tax, and sales tax in the ranking.
Florida, Nevada, Delaware, and Texas, just to name a few have zero state income tax.
Craig W Smalley EA
Admitted to Practice before the Internal Revenue Service
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.