10 States Where You Pay Less Taxes

8) Mississippi

Mississippi has a 5% income tax that starts fairly early– after income exceeds $10,000/year. They also impose sales tax on groceries, which most states do not. The sales tax is 7% which is the highest sales tax in the nation, second to California. However, there are many benefits to be had here, which is why this state makes the list. There are several unique products that are tax exempt, including newspapers, residential utilities, and most importantly, motor fuel. Mississippi also has the 17th lowest property tax in the nation, right after Arizona. The vehicle taxes are two percentage points under the general rate, at 5%. These benefits could easily outweigh the other tax rates which are just about average.