3 Least Tax-Friendly States To Consider

Before you think of moving to another state, it’s a good idea to look at the state taxes involved and which would affect the cost of living substantially.

With the new list of the least tax-friendly states out for 2014, it is surprising that there hasn’t been much change from last year.

That said. here are 3 least tax-friendly states:

#3: New Jersey

Income tax rates in the Garden State range from 1.4 percent on the first $20000 of taxable income to 8.9 percent for an income above $500000. State sales tax stands at 7 percent except for items such as clothing, footwear, prescription and non-prescription drugs and food. Gas taxes stand at $0.15 per gallon.

#2: Connecticut

Paying income tax in the Constitution State ranges from 3% to 6.7% where the latter kicks in for individuals and married couples at $250000 and $500000 respectively. While there are no local sales taxes, a sales tax of 6.35 percent is charged on most if not all items. Luxury items such as jewelry bear a sales tax of 7 percent. Sales tax on vehicles also range from 6.35% to 7% based on the cost of the vehicles. As for gas taxes, they stand at $0.49 per gallon.

#1: California

Home to the movie stars, Silicon valley and beautiful beaches, the Golden State’s income tax rates range from 1 to 13.3 percent for those whose income ranges from $7582 to $1 million. As for sales tax, there has been an increase as of Jan 1, 2013 from 7.25 to 7.5 percent. Finally, California charges the highest in gas taxes across the country amounting to $0.50 per gallon.