Top 10 States with No Income Tax: Where to Move in 2024 for Tax Savings

Have you ever thought that it is regrettable that you lose a large share of your income to state income taxes? You're not alone. As the new trends towards remote work and the desire of many Americans to capture big-ticket financial freedom more than ever, some taxpayers are eyeing to relocate to states with no state income tax. At the same time, one still has to pay federal income tax, but while living in those states, there can be tens of thousands of dollars saved annually depending on the individual—especially the highly paid employees, retirees, and business persons.

The flaw, however, is that public services have to be paid for one way or another by the states. They are working with a plan of no income tax or they may even raise property tax, sales tax, or any other fees. What some states offer as a low overall cost is that they shift the costs somewhere else within the healthcare system.

To help you in the exploration of opportunities, we have prepared an ultimate guide to the ten states with no income tax in 2025 together with the strengths and weaknesses of such an approach.

1. Alaska

Alaska’s untouched natural beauty and many natural wonders make it one of the more beautiful states in the United States of America. It is famous for its towering mountains, its immense and glistening fjords, and the really beautiful northern lights. It is not for everyone, especially those who do not enjoy snow for six months in a year, but there is so much life activity such as hiking, fishing, and watching wildlife in Alaska.

Why Move Here?

• No state income tax
• Many areas have no state sales tax
• Permanent Fund Dividend (PFD): Annual payment to residents from oil income (usually $1,000–$2,000)

Financial Considerations:

• Expensive cost of living because of transportation and imported products
• A few local cities have sales taxes
• Moderate property tax versus national average

Best For: Nature enthusiasts, remote workers, and thrill-seekers.

2. Florida

Warm climate, beautiful landscapes, and bucolic environments have made Florida famous among people who prefer warm climates, pensioners, and even real ‘beachcombers.’ Florida has a combination of vibrant, modern cities as well as peaceful coastal towns; it can offer different kinds of living and vacationing experiences during the years.

Why Move Here?

• No state income tax
• No estate or inheritance tax
• Luring to retirees and investors
• Pleasant climate and outdoor activities throughout the year

Financial Considerations

• Property tax rates are slightly higher than the national average
• High sales tax: 6% base plus local additions
• Homeowners' insurance is becoming more expensive because of natural disasters such as hurricanes

Best For: Retirees, remote professionals, and those seeking sunshine and tax savings.

3. Nevada

Nevada is a state that is much more than just the famous city of Las Vegas. This state has an extensive desert region, modest people, and affordable homes, other than in the urban centers. There are no taxes levied for personal or corporate income tax, hence making Nevada one of the most favored places for investors.

Why Move Here?

• No state income tax
• No corporate income tax
• Lower cost of living than surrounding California
• Entertainment capital with such cities as Las Vegas and Reno

Financial Considerations:

• Heavy dependence on sales taxes (6.85% state, can be higher locally)
• Tourism economy can cause job market fluctuations
• Property tax is typically fair, but depends on the area

Best For: Business owners, remote workers, and entertainment enthusiasts.

4. South Dakota

South Dakota has a beautiful landscape ranging from flat lands of a prairie to the famous Mount Rushmore. New Jersey has high reverence for the principles of conservative finance and limited governmental interference, which creates an environment best suited to persons with crude instincts and strong individualism.

Why Move Here?

• No state income tax
• Low cost of living
• No inheritance or estate tax

Financial Considerations:

• Fairly high sales tax (4.5% state + local additions)
• Property tax above average but compensated by low home prices

Best For: Retirees, farmers, and those on a budget.

5. Texas

If you are thinking of moving to Texas, you will be glad to know that Texas is one of the fastest-growing states in the nation; it is rich in jobs, culture, and most of the houses in this state are still fairly priced.

Why Move Here?

• No state income tax
• Robust job market (tech, energy, healthcare)
• Low-cost housing in much of the state

Financial Considerations:

• High property taxes (some of the highest in the country)
• Sales tax averages 6.25% (local additions bring it to 8.25%)
• Increasing home insurance premiums

Best For: Entrepreneurs, energy workers, and young professionals.

6. Washington

Washington state combines a progressive culture with plenty of natural beauty—from the Puget Sound to the Cascade Mountains. Its combination of tech innovation and outdoor adventure attracts a diverse group of residents.

Why Move Here?

• No state income tax
• Booming tech scene (Seattle, Bellevue)
• No tax on Social Security benefits

Financial Considerations:

• High sales tax (6.5% state + local add-ons)
• Costly housing market (particularly around Seattle)
• Property tax is moderate but increasing

Best For: Tech professionals, retirees, and outdoor enthusiasts.

7. Wyoming

Wyoming provides tranquility and seclusion in abundance, with less than 600,000 people dispersed throughout the state. Its pristine air, low crime rate, and wide-open spaces entice those who wish to leave the commotion of city life behind.

Why Move Here?

• No state income tax
• Low sales tax (4% state + local additions)
• No estate or inheritance tax

Financial Considerations:

• High property tax for business properties (residential is low)
• Limited job market outside of energy and tourism industries

Best For: Retirees, ranchers, and those seeking low taxes.

8. Tennessee

Whether you’re drawn to the music scenes in Nashville and Memphis or the scenic views of the Smoky Mountains, Tennessee combines southern hospitality with a lower cost of living and growing urban centers.

Why Move Here?

• No state income tax on wages (but taxes some investment income)
• Low cost of living
• No estate tax

Financial Considerations:

• High sales tax (7% state + local additions)
• Property tax is low

Best For: Retirees, musicians, and Southern lifestyle enthusiasts.

9. New Hampshire

New Hampshire provides you with the quintessential New England experience—picturesque seasons, close-knit communities, and historic charm.

Why Move Here?

• No state income tax on wages (but taxes dividends & interest)
• Low crime rate & great schools
• No sales tax

Financial Considerations:

• High property tax (one of the highest in the country)
• Cold winters might be challenging for a few
• Limited public transportation options

Best For: Families, remote workers, and New England enthusiasts.

10. North Dakota

North Dakota can go unnoticed quite easily; however, it is highly recommended. It's one of the few mainland states that provides a great balance of low taxes, open spaces, and a diverse economy—primarily fueled by energy and agriculture. While it does have a state income tax, the rate is among the lowest in the country, with some brackets nearing 0%, making it a strong contender for those looking to relocate without venturing too far from traditional living.

Why Move Here?

• Exceptionally low income tax (some brackets near 0%)
• Low cost of living and affordable housing
• A growing economy driven by oil, agriculture, and technology
• Low unemployment and high quality of life rankings

Financial Considerations

• Harsh winters and a rural lifestyle may not appeal to everyone
• Property taxes are moderate and vary by region
• Limited entertainment and cultural amenities in some areas

Best For: Budget-conscious families, remote workers, and professionals in energy or agriculture.

Summary Table: 10 States with No Income Tax (2025)

Most Important Financial Factors to Make Before Relocation

Federal Income Tax Still Applies

Don’t expect to avoid federal income tax just because you’ve moved to another state.

Property Tax Differs Significantly

Despite this, some states that do not impose any income taxes include Texas and New Hampshire, with relatively high property taxes.

Sales Tax & Other Fees

Some of the states, such as Tennessee and Nevada, have high levels of sales taxes.

Cost of Living & Job Market

Take into account the costs and jobs: some states are very costly even when they are not burdened with an income tax.

Retirement & Investment Taxes

Particular types of income, such as dividends and interest, are taxed at the state level in different states; some are friendly to retirees.

Conclusion: Final Words on Which State is Suitable for You?

Best for Retirees: Florida, Tennessee, South Dakota
Best for High Earners: Texas, Washington, Nevada
Best for Affordable Living: Wyoming, South Dakota
Best for Business Owners: North Dakota, Nevada, Florida

There is actually no one-size-fits-all when it comes to taxes, and the fiscal effects of such incentives can vary from one state to the other. First of all, one should speak to a tax advisor and consider other expenses which may also vary, like rent, health care, and transport.

Ready to save money on taxes? It is advisable to start planning for the transition to one of these tax-friendly states in 2025.