What Are the Top 5 Tax-Friendly States for Middle Class Families?

They say the middle class is the new lower class. While some may disagree, it’s true that, generally, the lower class pays the least income tax, if any, while the wealthier pay the most tax (but usually have plenty of money left to still thrive).

Meanwhile, the middle class pays a decent chunk in taxes but, yet, doesn’t have the extra funds of the upper class to get by decently. Times are difficult for the middle class, especially in today’s economy between inflated cost of groceries and high gas prices. Surely, things are overwhelming for the average family.

As a middle class family, you may need to consider a tax-friendly state if you want to keep the most income possible and not struggle to put food on the table.

1. Nevada

Did you know that the state of Nevada does not impose individual income tax? It’s true! In addition to this, Nevada offers low property taxes and has even banned taxes placed on certain feminine hygiene products. Clearly, Nevada is a great place for a middle class family to live.

2. Florida

Like Nevada, Florida doesn’t have personal income tax for its residents and also has no tax on some feminine hygiene products. While Florida tends to have average property tax, this state still boasts tax-free groceries, as well as no sales tax on many baby/toddler products. Cheers for raising a family without all the extra unnecessary costs!

3. Idaho

Idaho may not be the first state someone would think to move to, and if anything, is often forgotten about. However, it sure is tax-friendly for both families and retirees. Social security isn’t taxed by the state, and income is taxed at an average rate (unlike the astronomically high income tax rates of California, New York, or Hawaii, for instance).

You can also expect average property tax rates- or even lower property taxes if you’re able to snag Idaho property for sale in a rural area.

4. Tennessee

Tennessee residents still pay sales tax on groceries, diapers, and feminine products. However, their lower property taxes and lack of income tax makes Tennessee a tax-friendly place to reside. Not to mention, the average cost of living in this state is just roughly $42,469 a year. Not too hard to manage for a middle class family!

5. Arizona

Arizona is becoming a particularly hot place to live for young families, retirees, and even people in the public eye. And what’s not to love about the weather and sight-seeing in this state?!

Tax-wise, Arizona does impose state income tax, as well as sales tax on baby and women’s products. However, lower-end property taxes and no tax on groceries makes it a state that many find to be decently affordable.

A little warning, though: the general cost of living is a bit higher than the national average but several times lower than living in California while still offering exceptional weather conditions. The cost of living, however, comes down to where in Arizona you end up living.

Conclusion

With the lower class having the opportunity for government benefits and the upper class having the advantage of higher income, the middle class often gets forgotten. On the brightside, there are some U.S. states that are still tax-friendly enough for middle class families to thrive.