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Kiplinger
Kiplinger
Business
Kate Schubel

The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)

Panoramic view of Nashville, Tennessee along the Cumberland River .

After spending time scrutinizing financial markets and Fed rates, the last thing you probably want to think about is how much the tax man will take from your earnings.

But tax planning while investing is crucial. Not only can you minimize federal taxes through strategies like tax-loss harvesting, but if you live in a low-tax state, you might reduce investment taxes on your passive income.

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