Tax-Friendly States to Consider, and Which to Forget

9. Alaska: tax-friendly

Zero income taxes are just the tip of the iceberg as far as Alaska's tax laws are concerned. The Last Frontier is also one of five states that don't charge sales taxes. Some cities may charge a local sales tax, which is usually below average at around 2%. You might feel the pinch on property taxes, however, which are slightly above the national average. The high cost of living is not attractive, although Alaska is the only state that gives every legal resident an annual "Permanent Fund Dividend," making Alaskan living a bit easier.