Tax-Friendly States to Consider, and Which to Forget

4. Connecticut: not tax-friendly

Connecticut is a lovely vacation destination, but it's expensive to live here. Until the early 1990s, the Constitution State's tax rates were much lower than they are today. Now, income taxes are an above-average 3%, and property taxes are among the highest in the country. These rates are even costlier for higher-income taxpayers, ruining the incentive that wealthy New Yorkers once had to own property there. A lower-than-average sales tax is the only bonus since Connecticut also imposes estate taxes and is the only state to charge a gift tax.