Want to pay less in taxes? Why not relocate? You can’t really avoid paying your federal taxes but you can avoid paying ridiculously high local taxes by packing up and heading to the next town over.
Here are some cities you might want to avoid:
- Wilmington, Delaware: Find yourself here and you could be paying as high as 13.5% in local taxes.
- Detroit, Michigan: Detroit residents pay as much as 13.7% in local taxes.
- Louisville, Kentucky: Much like #2, you can see taxpayers footing a 13.7% tax burden.
- Portland, Maine: Live here and find yourself paying up to 15% in local taxes.
- Providence, Rhode Island: Live in Providence and you could pay up to 15.4% in local taxes.
- Columbus, Ohio: like Providence, live in Columbus and pay up to 15.4% in local taxes.
- Baltimore, Maryland: The first city on the list over 15% – live here and pay up 16.5% in local taxes.
- Milwaukee, Wisconsin: Milwaukee surges ahead with a 17.5% rate for many of its locals.
- Philadelphia, Pennsylvania: The highest rate in the City of Brotherly Love hits the 100k earning families at 20.9%.
- Bridgeport, Connecticut: Living here could cost you an extra 22% in taxes on top of your federal rate.
Looking for a new nest with low taxes,
- Las Vegas, Nevada: Find yourself in the Sin City and your highest local tax rate would be 10.5%. (Be wary of the sales tax though)
- Manchester, New Hampshire: Live in Manchester and you could pay 9.1% or lower.
- Sioux Falls, South Dakota: Residence of Sioux Falls can expect to shoulder a local tax burden of 5.9%.
- Memphis, Tennessee: If you move to Memphis you can expect to pay anywhere from 4.6%-11.8% in local taxes.
- Billings, Montana: Find yourself in Billings and you can expect to pay 7.4% in local taxes unless you don’t plan on driving much.
- Jacksonville, Florida: As a Jacksonville resident you could pay as little as 4.3% or as high as 11.8%.
- Fargo, North Dakota: Move to Fargo and pay only 5.2% in local taxes.
- Houston, Texas: Most residence of Houston pay less than 5% in local taxes
- Anchorage, Alaska: If you don’t mind the cold, move to Anchorage and expect to pay as little as 3.4% for local taxes
- Cheyenne, Wyoming: If you can move to Cheyenne, your local tax burden might be as low as 3.1%
“Follow the author on Twitter: @derek_muncy”
(H/T:https://turbotax.intuit.com/tax-tools/tax-tips/General-Tax-Tips/Cities-with-the-Lowest-Tax-Rates/INF29003.html ; https://turbotax.intuit.com/tax-tools/tax-tips/General-Tax-Tips/Cities-with-the-Highest-Tax-Rates/INF28957.html)