The World’s Tax-Friendliest Places to Live
Ah, taxes. We know that they’re necessary, but watching close to half of our paycheck disappear every two weeks is more than warring on the psyche. Hence, we were inspired to search the globe for the world’s tax-friendliest locations. After consulting a comprehensive study of global tax burdens, prepared by KPMG, we’ve identified the top cities around the world with the smallest tax burdens. Scroll through to see where to consider moving next.
In order to compare tax burdens across state lines, we’re using the measurement of Total Tax Index (TTI). The study we're referencing throughout this article defines TTI as a means to compare tax burdens by comparing the total actual tax cost in each jurisdiction. The United States serves as the baseline, with a TTI of 100.
With a TTI of 49.7, India is the tax-friendliest country in the world. Chennai and Mumbai are among the five cities in the world with the lowest TTI. According to Numbeo, the average monthly disposable salary after tax is equivalent to $694 U.S. dollars. To put things in perspective, an average gallon of milk in Mumbai costs $2.77.
Canada has the second-lowest TTI, coming in at 59.1. Toronto is the fifth tax-friendliest city in the entire world. Average monthly disposable salary after taxes amounts to $2599, and a standard gallon of milk will cost you just over $6.
Russia ranks fifth in terms of countries with the least draining tax system. With a score of 67.8, Saint Petersburg is the tax-friendliest of all Russian cities. Milk in Saint Petersburg costs less than $4 a gallon, and average monthly spending money citizens have after taxes is $625.
China comes in third place in terms of tax-friendly countries around the world. Chengdu ranks as the third tax-friendliest city in the world while Shanghai comes in 11th place, with a score of 68 TTI. In Shanghai, the average cost of a gallon of milk is just under $10, and the average monthly disposable income after taxes is $1465.
At 66.8 TTI, Manchester is the ninth tax-friendliest city in the world. London follows behind, at 79.8 TTI. In Manchester, England, a gallon of milk is just over $5 on average, and average monthly disposable salary equates to $2150.
In terms of taxes, Atlanta is the tax-friendliest city in the United States. With a ranking of 86.7 TTI, Atlanta also ranks as the 19th tax-friendliest city on the planet. On average, a gallon of milk in this Southern city costs just above $3 while the average monthly disposable salary after taxes is $2817.
Mexico has two cities in the top 10 tax-friendliest cities in the world. Monterrey has a TTI of 62.8 while Mexico City has a TTI of 64.2. In Mexico City, the average disposable income after taxes is $677, and the average gallon of milk costs just under $3.50.
With or without taxes, what is your ideal city to live in? Share with us in the comments.