The most (and least) tax-friendly states in the US

The grass may not necessarily be greener, but more importantly, if you live in these states you get to keep more of your own hard-earned money.

Wyoming is the most tax-friendly state in the U.S., according to Kiplinger.com’s annual State-by-State Guide to Taxes, which was released this week.

The personal finance site notes that people who live in the Equality State “like to own a lot of land,” and lucky for them the average property tax is $635 per $100,000 in home value. Compare that to the average $2,408 in property taxes you pay per $100,000 in home value in Illinois, which took the honors as the least tax-friendly state in the U.S.

Kiplinger based the survey on a hypothetical couple with two kids and $150,000 in income a year, plus $10,000 in dividend income, and then looked at their income, property and sales tax burden.

Tennessee made it to the most-friendly list, however, it also tied with Arkansas for having the highest sales tax in the country, at 9.47 percent, once both state and local sales taxes are factored in, according to the Tax Foundation.

The site also released its annual Retiree Tax Map, which breaks down how each state taxes retirement income.

The five least tax-friendly states, beginning with the bottom of the list, are Illinois, Connecticut, New York, Wisconsin and New Jersey.

And here are the top five most tax-friendly states and their different tax rates, according to Kiplinger’s analysis.

1. Wyoming

Jackson hole in Wyoming

STATE INCOME TAX: None

EFFECTIVE INCOME TAX RATE: 0%

AVERAGE STATE AND LOCAL SALES TAX: 5.32%

AVERAGE PROPERTY TAX: $635 per $100,000 in home value

GAS TAXES AND FEES: 24 cents per gallon

2. Nevada

Reno at sunrise

STATE INCOME TAX: None

EFFECTIVE INCOME TAX RATE: 0%

AVERAGE STATE AND LOCAL SALES TAX: 8.14%

AVERAGE PROPERTY TAX: $693 per $100,000 in home value

GAS TAXES AND FEES: 33.78 cents per gallon

 

3. Tennessee

Clarksville is a city in and the county seat of Montgomery County, Tennessee

STATE INCOME TAX: 2% on interest and dividends

EFFECTIVE INCOME TAX RATE: 0%

AVERAGE STATE AND LOCAL SALES TAX: 9.47%

AVERAGE PROPERTY TAX: $768 per $100,000 in home value

GAS TAXES AND FEES: 27.4 cents per gallon

4. Florida

Lake City, Florida (Credit: Lake City Police Department)

STATE INCOME TAX: None

EFFECTIVE INCOME TAX RATE: 0%

AVERAGE STATE AND LOCAL SALES TAX: 7.05%

AVERAGE PROPERTY TAX: $1,041 per $100,000 in home value

GAS TAXES AND FEES: 41.99 cents per gallon

5. Alaska

STATE INCOME TAX: None

EFFECTIVE INCOME TAX RATE: 0%

AVERAGE STATE AND LOCAL SALES TAX: 1.76%

AVERAGE PROPERTY TAX: $1,234 per $100,000 in home value

GAS TAXES AND FEES: 14.66 cents per gallon

To Reduce Travel Stress, Plan Less

It may seem counterintuitive, but one of the best ways to reduce stress while traveling is to just plan less and let spontaneity take over.

Lars Leetaru

You’re on a beach. White sand surrounds you. A cool breeze gently passes over from the turquoise waters just beyond your feet. You sip your piña colada, moving aside the tiny umbrella. The sound of the waves lulls you to sleep as you think: this is the life, I may never leave.

Or, you’re on a beach. At least, you think it’s a beach. Every square inch is covered with people. For the tenth time in five minutes you shake sand out of your hair, kicked there by a roving band of screaming adolescents. Beyond the beach is a rock-laden sea with currents so strong it’s impossible to safely swim. Two different speakers in two different directions blast music you hate at earsplitting volumes.

I’m sure you can imagine the disappointment, after planning a trip for months with the expectation of the first beach, you get the second. Two weeks trapped at a terrible place, locked into a nonrefundable room at a miserable location.

There is another way: Book only the first few days. While I know for most travelers, particularly those with families, such an extreme lack of planning seems impossible, even unadvisable, I strongly recommend considering planning less, even if that’s leaving just a few days open.

Planning less doesn’t lead to chaos

Several weeks into my first monthslong adventure, I thought it wise to lock down my itinerary for the next month. I booked several hostels, flights and even a two-week tour in Southeast Asia. The problem was, at my first stop in Melbourne, I fell in with an incredible group of people and had a blast. They stayed in Melbourne while I had to keep going. The same thing happened the next week in Brisbane. I missed out on so much. I vowed then to never book that far in advance.

For the last five years not planning more than a few days in advance has led to incredible opportunities. In Cherbourg, France, I stayed extra days in a randomly brilliant apartment. I took a road trip across England with friends, meeting new people and spending more time with them. Just as useful was the ability to leave places I didn’t like but thought I would.

Be Flexible

Surprisingly, this method rarely leads to issues, though it does occasionally require flexibility. Perhaps the hostel is booked, the best flight is too expensive or there isn’t space on the ferry. But if you don’t have your heart set on a specific hotel or an exact flight, you’ll be able to find options that are pretty close to your initial choices.

One notable exception is island hopping. Those flights and ferries fill up fast, and probably aren’t best left until the last minute. Some countries, especially island ones, require you to have your outgoing flight already booked when you arrive, and at least your first night’s accommodation.

Plan as you go

To make this work, you must be able to book as you travel. The first key is having a phone that works, with minimal roaming fees. For that, check out the guide to using your phone overseas at Wirecutter. Then it’s a matter of using apps like Orbitz, Hostelworld and Airbnb to find something new. Rome2Rio can help you figure out how to get there, using whatever transportation is available. Don’t forget to ask around, posing questions to locals or other travelers you meet along the way.

It’s worth a try

If you have your heart set on a rare tour or specific hotel, don’t leave that to chance. But if you’re going on a trip and looking for any place to stay and any flight to take, consider leaving a few days open.

On a two-week trip, book your first few days, and perhaps your last night. After those first days you’ll have a much better idea of your location, what you want out of that location and maybe even find a better area or place to stay. For example, after four days at a horrifying resort, you may find the beach you really want is on the other side of the island.

Relaxation and piña coladas await.

Inbound U.S. travel fell 5% in March

Photo Credit: Josef Hanus/Shutterstock

International inbound travel to the United States fell 5.4% in March year over year, a sharp decline after falling just 0.2% in February, according to a report from the U.S. Travel Association.

The steep drop-off in inbound visitors was in part due to the timing of Easter, which fell on April 1 last year and April 21 this year and has historically been a peak travel time for visitors to the U.S. But U.S. Travel said that is not the only explanation.

“The outlook for international inbound travel remains lackluster, suggesting that a further loss of global market share is in the cards for the U.S. in 2019,” said U.S. Travel senior vice president for research David Huether.

Looking ahead, the report predicts inbound travel growth to remain just below 1.5% over the coming six months.

“Soft global economic activity, persistent trade tensions and uncertainty surrounding the Trump administration remain major risks to international traveler sentiment,” U.S. Travel said.  “Ongoing U.S.-China and U.K.-Eurozone trade discussions, if resolved, have the potential to ease these downside risks.”

Travel to and within the U.S. grew 2% in March on the strength of domestic travel market, which grew 3.2%. Business travel increased 2%.

However, U.S. Travel predicts that segment will decline, too.

“Continued moderation in consumer spending, vacation intentions and business investment is expected to cause both segments of domestic travel to cool in the coming months,” U.S. Travel reported.

SAVVY SAVINGS Cheapest months of the year to travel by plane, cruise and train

THE time of year that you travel could make a big difference to how much you pay for a trip – and it’s not just about avoiding the school holidays.

In fact, the cheapest months to travel will also vary depending on whether you’re flying, going on a cruise or travelling by train.

The time of year you travel could result in big savings

This is because there’s a different “shoulder season” for each type of holiday – a time of the year where demand is generally lower and so travel companies lower the price as well.

Here, Sun Online Travel reveal the best months to travel whether you’re going by plane, cruise or train:

Travelling by plane

Next time you book a long-haul flight, you should choose May, June or September to travel, according to research by TravelSupermarket.

Their stats revealed that these months are the “shoulder months” for flights, reports the Independent, as they are often before or after the busy peak period.

Travelling during “shoulder season” can be much cheaper

The destinations are generally quieter and cheaper too.

A short-haul holiday is best booked in May, with package holidays in Europe up to 50 per cent cheaper.

Previous research also revealed that January is one of the cheapest months to travel, as few people want to go abroad following an expensive Christmas.

But if you’re flexible enough to book a last-minute break, there are some fantastic deal to be found.

While not specific to a particular month, the dates right after a Bank Holiday can be particularly cheap.

Most people are rushing to take advantage of the extra day, and therefore pushing up the prices of holidays.

But because of that, there’s hardly anyone going on holiday just after the Bank Holiday, meaning it’s often much cheaper.

Not only is it cheaper but it also means quieter holidays

Travelling by cruise

A cruise holiday can also be much cheaper if you travel during the “repositioning” period.

Repositioning cruises, also known as “repo” cruises, are when ships head to a different port for a new route.

As the route is only one way, and you might not stop in as many ports, it can mean discounted prices.

Ian Crawford from CruiseDeals.co.uk told Sun Online Travel: “The shoulder seasons for cruising are April and October, when cruise ships move between their winter and summer destinations and there are amazing deals available.

A cheaper cruise holiday can be found thanks to “repositioning” cruises

“These are known as repositioning cruises and prices are lower because they are typically longer in duration, spend more days at sea and are adult only.

“But, they also visit two parts of the world, such as the Caribbean AND the Mediterranean, and during sea days passengers can really unwind and get the most out of their ship.

“For example Marella Celebration’s Atlantic Sunsets repositioning cruise from Barbados to Cyprus has a 20-night duration and includes stops at amazing islands in the Caribbean and the Mediterranean, yet prices start from just £1,656 per person and all food, drinks and tips are included.

“Marella Explorer 2 makes its own journey from the Caribbean to Southampton with a 17-night Atlantic Voyage itinerary starting 26 April 2020 that includes stops in Dominica, the British Virgin Islands, Bermuda, the Azores and France, with all-inclusive prices from only £1,911 per person.”

Travelling by train can also see some bargains

Travelling by train

When it comes to travelling by train overseas, such as the Eurostar, it’s the time of day that makes a big difference.

Mark Smith, from The Man in Seat Sixty-One, explained: “On Eurostar I often find the first very early train of the day (and sometimes, the last evening train) has the cheapest seats.”

He also said that the cheapest times to travel are often lunch times on Tuesday, Wednesday or Thursday – Friday and Sunday afternoons are the worst, along with Monday mornings.

Mark also added that months such as February and November are often the least busy therefore companies will offer bigger discounts.

Also, they avoid the major holidays such as Easter and Christmas.