Tax-Friendly States to Consider, and Which to Forget

6. Iowa: not tax-friendly

Cornfields and tallgrass prairies come to mind when pondering Iowa. It may be a surprise to learn that the Hawkeye State also has some of the highest income tax rates in the country, up to 8.5% for high-income earners. Middle-class families are also on the hook for thousands of dollars a year in property taxes, and local governments can add as much as 1% to the state's average sales tax rates. Retirement benefits don't fare much better, either, though military pensions are exempt from taxation.