The 10 Lowest Tax States in 2025

Ranked by combined state income, sales and property tax on a $100,000 household ($400,000 home). Wyoming takes #1 at $3,880; the gap to #10 is $3,160 a year.

Methodology — what "tax burden" means here

1.Income tax — 2025 state brackets applied to $100,000 (MFJ) from the site's central stateIncomeTax.ts config.
2.Sales tax — state base rate × $40,000 of taxable consumer spending. Local/county sales tax is excluded.
3.Property tax — state average effective rate × $400,000 home value. Sources: Tax Foundation + US Census Bureau.
4.Not included — federal income tax, FICA, local income tax (e.g., NYC), estate tax, vehicle/excise tax.

Top 10 lowest-burden states for 2025

Ranked by total state-level tax dollars paid under the scenario below. Numbers are live-computed at build time from the site's central tax data — state income tax brackets, state base sales tax rate, and average effective property tax rate.

Rank	State	Income tax	Sales tax	Property tax	Total	% of income
#1	Wyoming No income tax ·	$0	$1,600	$2,280	$3,880	3.88%
#2	Alaska No income tax ·	$0	$0	$3,920	$3,920	3.92%
#3	Nevada No income tax ·	$0	$2,740	$2,120	$4,860	4.86%
#4	Tennessee No income tax ·	$0	$2,800	$2,240	$5,040	5.04%
#5	Florida No income tax ·	$0	$2,400	$3,280	$5,680	5.68%
#6	Washington No income tax ·	$0	$2,600	$3,360	$5,960	5.96%
#7	North Dakota Progressive up to 1.95%	$371	$2,000	$3,920	$6,291	6.29%
#8	South Dakota No income tax ·	$0	$1,680	$4,680	$6,360	6.36%
#9	Arizona Flat 2.50%	$2,500	$2,240	$2,200	$6,940	6.94%
#10	Louisiana Flat 3.00%	$3,000	$2,000	$2,040	$7,040	7.04%

Scenario: $100,000 household income (married filing jointly), $400,000 home value, $40,000 annual taxable consumer spending.

How each low-burden state stacks up

Wyoming

$3,880

3.88% of income

Income tax: $0 (no state income tax)
Sales tax: $1,600 at 4.00% state rate
Property tax: $2,280 at 0.57% effective rate

Calculate Wyoming income tax → Full Wyoming tax guide →

Alaska

$3,920

3.92% of income

Income tax: $0 (no state income tax)
Sales tax: $0 (no state sales tax)
Property tax: $3,920 at 0.98% effective rate

Calculate Alaska income tax → Full Alaska tax guide →

Nevada

$4,860

4.86% of income

Income tax: $0 (no state income tax)
Sales tax: $2,740 at 6.85% state rate
Property tax: $2,120 at 0.53% effective rate

Calculate Nevada income tax → Full Nevada tax guide →

Tennessee

$5,040

5.04% of income

Income tax: $0 (no state income tax)
Sales tax: $2,800 at 7.00% state rate
Property tax: $2,240 at 0.56% effective rate

Calculate Tennessee income tax → Full Tennessee tax guide →

Florida

$5,680

5.68% of income

Income tax: $0 (no state income tax)
Sales tax: $2,400 at 6.00% state rate
Property tax: $3,280 at 0.82% effective rate

Calculate Florida income tax → Full Florida tax guide →

Washington

$5,960

5.96% of income

Income tax: $0 (no state income tax)
Sales tax: $2,600 at 6.50% state rate
Property tax: $3,360 at 0.84% effective rate

Calculate Washington income tax → Full Washington tax guide →

North Dakota

$6,291

6.29% of income

Income tax: $371 — marginal rate 1.95%
Sales tax: $2,000 at 5.00% state rate
Property tax: $3,920 at 0.98% effective rate

Calculate North Dakota income tax → Full North Dakota tax guide →

South Dakota

$6,360

6.36% of income

Income tax: $0 (no state income tax)
Sales tax: $1,680 at 4.20% state rate
Property tax: $4,680 at 1.17% effective rate

Calculate South Dakota income tax → Full South Dakota tax guide →

Arizona

$6,940

6.94% of income

Income tax: $2,500 — marginal rate 2.50%
Sales tax: $2,240 at 5.60% state rate
Property tax: $2,200 at 0.55% effective rate

Calculate Arizona income tax → Full Arizona tax guide →

#10

Louisiana

$7,040

7.04% of income

Income tax: $3,000 — marginal rate 3.00%
Sales tax: $2,000 at 5.00% state rate
Property tax: $2,040 at 0.51% effective rate

Calculate Louisiana income tax → Full Louisiana tax guide →

What the low-burden cluster has in common

Almost every state at the top of the 2025 low-burden list shares two traits: it either levies no state income tax at all (one of the nine no-income-tax states) or it combines a narrow flat income tax with below-average property and sales rates. States that fund most of their public services through severance taxes (Alaska, Wyoming) or tourism (Nevada, Florida) naturally show up — they extract revenue from sources other than residents' wages. The states most often missing from low-burden lists despite having zero income tax are Texas and New Hampshire, both of which lean heavily on property tax.

Rankings shift meaningfully with scenario inputs. Doubling household income to $200,000 gives the nine no-income-tax states a much larger edge because their savings scale linearly while progressive-tax states accelerate. Lowering the home value (renter or condo scenario) similarly reshuffles the list: Texas and New Hampshire can move up 5–10 positions. Use the methodology panel above to check whether the default scenario matches your household before using this ranking as a relocation guide.

Frequently asked questions

Which state has the lowest total tax burden in 2025?

Under our $100,000 household scenario, Wyoming has the lowest combined state tax burden at $3,880 (3.88% of income). Alaska is #2 at $3,920. Rankings change if you use a different income level, home value, or filing status — a high-earner scenario ($250k+) gives no-income-tax states like Wyoming and Florida a bigger edge, while a renter (no property tax) scenario reshuffles the list.

Why is this different from Tax Foundation's "state-local tax burden" ranking?

Tax Foundation publishes an annual state-local burden ranking that averages every tax dollar paid by a state's residents divided by its aggregate income. Our ranking is scenario-based: it shows how much an individual $100,000 household in each state actually pays in state income, sales, and property tax — a more concrete figure for someone considering a move. The two methodologies broadly agree but the ordering at the edges can differ.

Do these rankings include local (city and county) taxes?

No. Sales tax uses the state base rate only — most states allow counties and cities to layer additional local sales tax (e.g., up to 4.5% in Louisiana), which is not included. Property tax uses the state-wide average effective rate; your actual rate depends on your county, school district and town. Income tax uses the state rate only — cities like New York, Philadelphia, and Portland impose their own income tax on top.

Which states have no income tax in 2025?

Nine states levy no individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire previously taxed interest and dividends but has fully phased that out. Eight of these nine appear prominently in low-burden rankings, with only Texas often dropping on property-heavy comparisons because of its 1.60% average effective property-tax rate.

Is property tax really part of my tax burden if I rent?

Not directly — but landlords pass through a portion of property tax in rent. In the scenario above we assume the household owns the $400k home and pays property tax directly. If you plan to rent, rerun the analysis with the property-tax component set to zero; states like Texas and New Hampshire move considerably up the ranking because they use property tax to fund services that other states fund via income or sales tax.

Sources

See the highest-tax states 2025 →

The flip side — where a $100k household pays the most in combined state tax.

Rank states for your actual income →

Interactive tool that uses your income, state and filing status.