No Income Tax States: Which One Actually Saves You More?
9 states charge zero income tax. But property tax, sales tax, and cost of living tell the real story.
| State | Income Tax | Prop Tax | Sales Tax | Median Home | Cost of Living |
|---|---|---|---|---|---|
| Texas | 0% | 1.60% | 8.20% | $334K | Below avg |
| Florida | 0% | 0.86% | 7.01% | $405K | Average |
| Tennessee | 0% | 0.64% | 9.55% | $310K | Below avg |
| Nevada | 0% | 0.53% | 8.23% | $420K | Average |
| Washington | 0% | 0.87% | 10.25% | $575K | High |
| Wyoming | 0% | 0.56% | 5.36% | $315K | Below avg |
| South Dakota | 0% | 1.14% | 6.40% | $290K | Below avg |
| Alaska | 0% | 1.04% | 1.76% | $360K | High |
| New Hampshire | 0% | 1.86% | 0% | $475K | High |
Our Top 3 Picks (And Why)
🥇 Texas
Best overall balance of job market, affordability, and lifestyle. Higher property taxes but $334K medians more than compensate. Strongest economy of all 9.
🥈 Florida
Best for retirees and lifestyle seekers. Low property taxes. Insurance is the catch — budget accordingly. International community and beaches are unmatched.
🥉 Tennessee
Dark horse. Lowest property taxes, $310K medians, Nashville job market booming. The sales tax is high (9.55%) but overall cost of living is below average.
Bonus: New Mexico (The Wild Card)
NM has a modest income tax (1.7-5.9%), so it didn't make the “zero” list. But its 0.67% property tax is the lowest in America. When you combine that with $357K medians and below-average cost of living, many families actually pay less total tax than in Texas. See the full NM breakdown →