What’s the best no-income-tax state to live in?

The 9 no-income-tax states

• Texas — biggest, strongest economy, no income tax (but high property tax)
• Florida — warm + retiree-friendly, no income tax (rising insurance is the catch)
• Tennessee — no income tax + low property tax + middle COL
• Washington — strong economy + no income tax (offset by high sales tax + B&O)
• Nevada — no income tax + low property tax (depend on tourism + gaming)
• Wyoming — no income tax + lowest population state (rugged, isolated)
• South Dakota — no income tax + low cost (small, mostly rural)
• Alaska — no income tax + Permanent Fund Dividend (very remote, costly logistics)
• New Hampshire — no wages-tax (taxes interest+dividends at 4%, phasing out)

Which to pick

If you want a strong job market: TX or WA.

If you want warm weather + low cost: TN or FL (watch FL insurance).

If you want low total tax burden including property: TN or NV.

If you want pure tax minimization with rural life: WY or SD.

If you can handle the climate and pay logistics costs: AK.

If you want the New England aesthetic without income tax: NH.

What gets taxed instead

All 9 states still have state spending — the money comes from somewhere.

TX, NH: high property taxes.

WA: high sales tax (10.4% in Seattle), B&O tax on businesses.

FL: tourism + sales tax + property tax (insurance is the hidden cost).

NV: gaming + tourism.

TN, WY, SD, AK: low overall budgets supported by extraction (gas, mining, oil) and federal transfers.

Related

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