10 States Where You Pay Less Taxes

3) Alabama

The biggest and best tax break Alabama has to offer comes in the way of property taxes, which are the lowest in the continental US (Only Hawaii’s are less, which can be contributed to the ridiculously high prices for property in the state). The sales tax is only 4%, but food is taxable, and local taxes can be added to equal a combined rate of 8.9%, which is one of the highest in the nation. Prescriptions are excluded. The highest income tax is only 5%, imposed after a single person makes more than $3,000/year or $6,000 for a married couple. An interesting leg-up is that Alabamans are able to deduct their federal income tax from their taxable state income, which definitely saves you some money. With ocean fronts and down-home hospitality added to the mix, Alabama is a great place to call home.