South Dakota

Income tax: None
State sales tax: 4%
Property tax per capita: $1,072
Inheritance tax: None
Estate tax: None

Investors in South Dakota are happy to hold on to their capital gains. With taxes low in a sparsely populated state, South Dakota collected less state tax than any other -- $1.3 billion in 2010, according to U.S. Census data. The state is one of seven that do not offer a sales tax break on purchases of groceries, according to Bloomberg BNA. Its combined state and local sales tax of 5.39 percent is among the lowest of the states.