South Dakota residents pay no personal income tax. Its sales tax is 4 percent, it levies no corporate income taxes, and has no estate tax. As of 2010, its gasoline tax is 22 cents per gallon.
South Dakota also has something else going for it besides low taxes — low unemployment. As of March 2012, the state had an unemployment rate of 4.3 percent, well short of the national average, according to the Bureau of Labor Statistics.