New Hampshire is consistently rated among the top tax-friendly states in the country. A CNN/Money Magazine report rated New Hampshire as the second most tax-friendly state for 2004, just behind Alaska.

There is no state sales or income tax in New Hampshire and it is a long-standing tradition that many in the state are proud of. During election season, it is not uncommon to hear questions directed toward gubernatorial candidates regarding whether they are willing to take "The Pledge" -- a promise to veto any attempts by the state legislature to institute a sales or income tax.

Despite its tax-friendly reputation, New Hampshire does have its fiscal difficulties and that has certainly been the case in recent years. The state does have a property tax that rates among the highest in the country.

Even so, New Hampshire is still a very popular destination for those that want to live in a state with a low over-all tax burden. In face, New Hampshire was selected as the destination for participants in the "Free State Project" -- a group seeking a state to live where they could enjoy lower taxes and less government interference in their lives.