This week, the personal-finance publication Kiplinger's released its list of the most — and least — tax-friendly states in America. To draw its conclusions, it used a hypothetical couple with two kids and $150,000 in income a year plus $10,000 in dividend income, and then looked at the income-, property- and sales-tax burden that family would face.
Illinois took the No. 1 spot on the list, thanks in large part to its high property taxes. The Land of Lincoln was followed by Connecticut and New York, both of which have pretty high-income taxes.
The 10 least tax-friendly states:
3. New York
5. New Jersey
Meanwhile, the most tax-friendly states (in order) were Wyoming, Nevada and Tennessee. The first two don't levy an income tax; Tennessee has an income tax, but it only applies to interest and dividends and not to salaries and other wages.