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15 US cities where wealthy families pay the least in taxes
15 US cities where wealthy families pay the least in taxes
Liz KnuevenOct 18, 2019, 02:14 IST
Wikimedia Common
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For wealthy families wanting to save on taxes, these 15 cities in Washington, Texas, Florida, and Indiana are the best, according to data from GOBankingRates.
The data considers state and local taxes, the costs of homes, median incomes, and community factors like crime rates and school quality.
Suburbs near cities in Florida, Texas, and Washington dominate the list, especially since these states have no state income taxes.
Most of the cities on the list are suburbs of cities like Houston and Dallas. By living just outside of cities, the data shows that wealthy families can avoid paying high city taxes, and enjoy lower crime rates, better schools, and bigger homes for less.
Wealthy families live all over the US, but they aren't always paying the same amount of taxes.
GOBankingRates looked at the cities that offered the best tax benefits for wealthy citizens, along with the median household income, price of a top-tier home, and the quality of schools and crime rates. It found that while there were opportunities across the country in Alabama, Massachussetts, and Indiana for families to take advantage of low taxes, the best places for wealthy families were overwhelmingly suburbs in Texas.
There are a few reasons why suburbs and Texas made the list so frequently. Texas is one of nine states in the US that doesn't impose income taxes on residents, along with Florida and Washington (states which also had suburbs on the list). In the suburbs, it's far easier to find better home values and lower taxes than inside the city limits.
These suburbs were ranked based on the factors above, with taxes being the No. 1 factor. Here are the 15 places in the US where wealthy families pay the least in taxes:
Just outside of Birmingham is Hoover, Alabama, a small town where nearly a third of families earn more than $125,000 per year and the tax rates are low. And in the deep south, a large income will go a long way.
Average median household income: $81,038
Tax rate for the typical family: 5%
State and local taxes for the top 1% of families: 5%
14. Round Rock, Texas
North of Austin, this affluent town has median value top-tier homes selling for less than $500,000, and is in a state with no income tax.
Average median household income: $76,295
Tax rate for the typical family: 0%
State and local taxes for the top 1% of families: 3.1%
13. Fishers, Indiana
Just outside of Indianapolis, Fishers offers top tier homes under $400,000 and median six-figure incomes in a state where the cost of living is low. Even though Indiana does have state income tax, it's fairly low.
Average median household income: $101,469
Income tax rate for the typical family: 3.23%
State and local taxes for the top 1% of families: 6.8%
12. Boca Raton, Florida
Boca Raton is full of top tier homes and high incomes. Couple that with no state income tax in Florida, and it's a great place for affluent families to live comfortably.
Average median household income: $76,218
Income tax rate for the typical family: 0%
State and local taxes for the top 1% of families: 2.3%
11. Newton, Massachusetts
Newton, a suburb of Boston, Massachussetts, has low taxes and about 50% of families make more than $125,000 per year. But, a nice home will cost well over $1,200,000 here.
Average median household income: $133,853
Income tax rate for the typical family: 5.05%
State and local taxes for the top 1% of families: 6.5%
10. Carmel, Indiana
Very near other affluent Indianapolis suburb Fishers, Carmel, Indiana is another town where residents can make their dollar stretch and buy a top-tier home for less and live well affordably.
Average median household income: $109,201
Income tax rate for the typical family: 3.23%
State and local taxes for the top 1% of families: 6.8%
9. McKinney, Texas
McKinney, Texas offers nice homes and low income taxes, and about a third of families earn $125,000 per year or more.
Average median household income: $87,608
Income tax rate for the typical family: 0%
State and local taxes for the top 1% of families: 3.1%
8. Kirkland, Washington
Just across Lake Washington from Seattle, Kirkland is a suburb of affluent families in a state with no income taxes. But, it's not necessarily as affordable as other places on this list, with a median nice home costing over $1,200,000.
Average median household income: $104,319
Income tax rate for the typical family: 0%
State and local taxes for the top 1% of families: 3%
7. Bellevue, Washington
South of Kirkland and west of Seattle, Bellevue is another city with high incomes and high home prices — but affordable taxes, even for the wealthy.
Average median household income: $105,402
Income tax rate for the typical family: 0%
State and local taxes for the top 1% of families: 3%
6. Plano, Texas
This suburb of Dallas offers affordable homes and living, easy access to the city, and high median salaries on top of no state income tax.
Average median household income: $88,579
Income tax rate for the typical family: 0%
State and local taxes for the top 1% of families: 3.1%
5. League City, Texas
Outside of Houston, this affluent suburb on the bay is ideal for high-income families. Over a third of families make more than $125,000 per year, and top-tier homes go for less than $400,000.
Average median household income: $100,996
Income tax rate for the typical family: 0%
State and local taxes for the top 1% of families: 3.1%
4. Pearland, Texas
Pearland, Texas is another Houston suburb with high incomes and affordable living for wealthy families.
Average median household income: $102,224
Income tax rate for the typical family: 0%
State and local taxes for the top 1% of families: 3.1%
3. Allen, Texas
Another Dallas suburb makes the list, with Allen, Texas in the top three. This is another Texas town with high incomes, low top-tier home prices, and over a third of residents earning more than $125,000 or more.
Average median household income: $104,132
Income tax rate for the typical family: 0%
State and local taxes for the top 1% of families: 3.1%
2. Sugar Land, Texas
This Houston suburb is an ideal place for high-earning families to enjoy low taxes, great home values, and many other families just like them — about 45% of families here make more than $125,000 per year.
Average median household income: $108,994
Income tax rate for the typical family: 0%
State and local taxes for the top 1% of families: 3.1%
1. Frisco, Texas
Frisco, Texas is the best place for affluent families for the US, thanks to Texas's no income tax policy and low home prices.
Average median household income: $120,701
Income tax rate for the typical family: 0%
State and local taxes for the top 1% of families: 3.1%
