Where you live Matters! Taxes

Since I hate taxes and want to minimize them as much as legally possible, I have done a little research to figure out where the best place to work/live is - yes I am planning my next move! I based my research on a single person making $75,000 in each state. Here is what I have found: New Jersey is the worst state to live in when taxes alone are considered. A little less than 45% of every dollar earned is given back via income, sales, and property taxes, Federal income taxes. It doesn't even take into account things like toll roads.

When Cost of Living (COL) is added into the equation, Hawaii, California and D.C. are the worst. New Jersey comes in 4th. In other words, a person making $75,000 will feel the poorest in these states as they will have less money to discretionary spending or saving.

Alaska and Wyoming have the lowest taxes in the US. When COL is added, The best places to live are: Tennessee, South Dakota, and Texas. Most of the states that were near the top are those which do not have a state income tax (9 states).

State tax rates: Income, ave. property, sales, and federal income tax:
Alaska 30.91%
Wyoming 33.18%
New Hampshire 33.64%
Delaware 34.15%
South Dakota 34.57%
Tennessee 36.41%
Montana 36.51%
Nevada 36.65%
Florida 36.73%
Louisiana 37.15%
Colorado 37.34%
Alabama 37.38%
Texas 37.56%
Washington 37.83%
North Dakota 38.56%
Arizona 38.93%
Oklahoma 38.97%
New Mexico 39.18%
Indiana 39.20%
Georgia 39.34%
Utah 39.39%
Missouri 39.66%
West Virginia 39.75%
Ohio 39.88%
Oregon 39.95%
Hawaii 40.31%
Virginia 40.31%
Penn. 40.42%
Mississippi 40.60%
Arkansas 40.75%
Kentucky 40.82%
North Carolina 40.87%
Maryland 41.25%
Kansas 41.39%
Michigan 41.42%
South Carolina 41.60%
Illinois 41.71%
Mass. 42.03%
Iowa 42.20%
D.C. 42.29%
Nebraska 42.58%
New York 42.69%
Conn. 43.51%
Minn. 43.53%
Idaho 43.64%
Wisconsin 43.78%
Maine 43.79%
Vermont 44.52%
California 44.56%
Rhode Island 44.84%
New Jersey 44.93%

Interesting thought: Many retiree's go to Florida to retire. It could be because of the warm weather, but it may be that by living in Florida, their nest egg goes farther because there is no income tax. By moving from New Jersey to Florida and assuming I have 5 million in my 401k, I would save $350,000 just because of the income tax difference. Retirement Strategy: move to Florida for one year, take a lump sum payment from my pension and 401k, then move to a low cost state that I really want to live in.

I can't believe Idaho has such high taxes! Those people aren't getting screwed... at least New Jersey has jobs that pay $75,000!