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Alaska

State Income Tax: none
State Sales Tax: none
Inheritance Tax: No

Taxes? The Last Frontier State actually gives residents money for living there, distributed from its Permanent Fund, an oil wealth savings account administered by the state. This year, every man, woman and child who has lived in Alaska for at least one year received a 2009 dividend of $1,305. There's no income tax, no state sales tax, and only 25 municipalities even levy a property tax. Some municipalities impose local sales taxes of up to 7%, however.