What is the best state to live in to avoid taxes?

Asked by: Vesta Mante  |  Last update: September 7, 2025
Score: 4.9/5 (31 votes)

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming do not levy state income taxes, while New Hampshire doesn't tax earned wages. States with no income tax often make up the lost revenue with other taxes or reduced services.

What is the most tax-friendly state to live in?

  • Alaska. #1 in Low Tax Burden. #45 in Best States Overall. ...
  • Florida. #2 in Low Tax Burden. #9 in Best States Overall. ...
  • South Dakota. #3 in Low Tax Burden. ...
  • Wyoming. #4 in Low Tax Burden. ...
  • Tennessee. #5 in Low Tax Burden. ...
  • New Hampshire. #6 in Low Tax Burden. ...
  • Texas. #7 in Low Tax Burden. ...
  • Oklahoma. #8 in Low Tax Burden.

What is the cheapest state to live in regarding taxes?

Alaska is renowned for having the lowest tax burden among all states. With no state income tax or state sales tax, Alaskans enjoy the advantage of keeping more of their earnings.

What states have no income tax and low property tax?

Eight U.S. states levy no income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. One state taxes only interest and dividend income: New Hampshire. Sales, property, and excise taxes can be higher in states with no income tax as a trade-off to fund important government services.

Where is the best place to live to avoid income tax?

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming are the no income tax states. I'd probably pick between Miami in Florida, Seattle in Washington, Las Vegas in nevada, and maybe Austin in Texas.

How to AVOID Taxes... Legally (Do This Now)

29 related questions found

Which state in the USA is tax free?

Which Are the Tax-Free States? Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax. Note that Washington does levy a state capital gains tax on certain high earners.

Where is the cheapest place to live with no taxes?

For those looking for the most tax-friendly state, Wyoming is an ideal destination. MoneyGeek's analysis revealed that it tops the list, followed by Nevada, Tennessee, Florida and Alaska. All of these states have one thing in common - they have no state income tax.

What state has the worst taxes?

In fact, the states with the highest tax in the U.S. in 2021 are:
  • California (13.3%)
  • Hawaii (11%)
  • New Jersey (10.75%)
  • Oregon (9.9%)
  • Minnesota (9.85%)
  • District of Columbia (8.95%)
  • New York (8.82%)
  • Vermont (8.75%)

What state pays no property tax?

While there is no state in the U.S. that doesn't have property taxes on real estate, some have much lower property tax rates than others.

What states don't tax social security?

All states and the District of Columbia impose these taxes except Alaska, Delaware, Montana, New Hampshire and Oregon. The highest state sales taxes are in California (7.25%), Indiana, Mississippi, Rhode Island and Tennessee (7.0% in each).

What is the best state to live in financially?

  • Arkansas. #1 in Cost of Living. #47 in Best States Overall. ...
  • Mississippi. #2 in Cost of Living. #48 in Best States Overall. ...
  • Alabama. #3 in Cost of Living. ...
  • South Dakota. #4 in Cost of Living. ...
  • Iowa. #5 in Cost of Living. ...
  • North Dakota. #6 in Cost of Living. ...
  • Oklahoma. #7 in Cost of Living. ...
  • West Virginia. #8 in Cost of Living.

What state pays the lowest property tax?

All of the data below comes from the Census Bureau's 2022 1-year American Community Survey (ACS) Estimates.
  • Hawaii. Hawaii has the lowest property tax rate in the U.S. at 0.27%. ...
  • Alabama. Alabama is generally one of the more affordable states in the country. ...
  • Colorado. ...
  • Nevada. ...
  • Utah. ...
  • West Virginia.

What is the most tax-friendly state for retirees?

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming are the top tax-friendly states for retirees. All of them have no personal income taxes. 1 Other taxes, cost of living, and overall quality of life are also important considerations.

What state is best for seniors on social security?

9 Best States to Retire
  • Delaware. Delaware offers a comfortable environment for retirees, boasting a moderate climate that experiences all four seasons without any extremes. ...
  • Georgia. Georgia is a compelling choice for retirees seeking a diverse and enriching lifestyle. ...
  • Maryland. ...
  • New Jersey. ...
  • Pennsylvania. ...
  • South Carolina.

Is Florida tax-friendly?

Yes, Florida is one of the most tax-friendly states for retirees, offering numerous advantages that help reduce the overall tax burden: No State Income Tax: Florida is one of the few states that doesn't tax personal income, making it highly attractive for retirees.

At what age do you stop paying property taxes in the USA?

As a senior citizen, you probably will end up paying property taxes for as long as you are a homeowner. However, depending on the state you live in and often once you hit your 60s (usually around the ages of 61 to 65), you may be eligible for a property tax exemption.

Which 10 states have the highest property tax?

Highest Property Taxes By State
  • New Jersey – 2.08%
  • Illinois – 1.95%
  • Connecticut – 1.78%
  • New Hampshire – 1.61%
  • Vermont – 1.56%

What states have no property tax?

Sadly for investors, the answer is no, there are no states without property tax. This is because property tax is a useful way for local governments to fund public services such as schools, fire and police departments, infrastructure and libraries.

Which state is tax friendly for rich?

The three highest-ranking states — Wyoming, South Dakota and Alaska, respectively — all are largely rural and sparsely populated, attributes that contribute to their tax-friendliness.

Where is the best place to live for tax purposes?

So what are the lowest income tax states? At the top of the list are the 9 states with no state earned income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. That's not to say these are no-tax states.

Where is the best place to live to save taxes?

Some of the most popular countries that offer the financial benefit of having no income tax are Bermuda, Monaco, the Bahamas, and the United Arab Emirates (UAE). There are a number of countries without the burden of income taxes, and many of them are very pleasant countries in which to live.

Where can you live with no property tax?

For property owners and real estate investors, choosing a location with no property taxes can have far-reaching financial consequences. Countries like the Cayman Islands, Liechtenstein, Georgia, and Malta offer an appealing alternative for those seeking to protect their gains and expand their real estate portfolios.