Lowest Tax States 2026: Tax Burden Ranked
Which states have the lowest taxes? See all 50 ranked by total tax burden, income tax, property tax, and sales tax rates.
The 10 most tax-friendly states
Tax burden is a major relocation factor. The difference between living in a high-tax and low-tax state can be worth thousands of dollars a year — and with remote work erasing geographic constraints, more people are making that move. We ranked all 50 states on fiscal health using Tax Foundation data, covering income tax, property tax, sales tax, total burden, debt, reserves, pension funding, and credit ratings.
Wyoming leads with a fiscal health score of 79.4/100 and a total tax burden of 5.79%. The national average burden is 8.7%. 9 states charge no income tax at all: New Hampshire, South Dakota, Wyoming, Washington, Florida, Texas, Tennessee, Alaska, Nevada.
Our fiscal health score isn't just about who charges the least. It accounts for whether the state can sustain its spending without raising taxes — rainy day funds, pension obligations, debt levels, and credit ratings all factor in. A state with 0% income tax but crushing debt isn't truly tax-friendly in the long run.
| Rank | State | Score | Tax Burden |
|---|---|---|---|
| #1 | Wyoming | 79.4 | 5.79% |
| #2 | South Dakota | 76.3 | 6.46% |
| #3 | Tennessee | 76.1 | 6.38% |
| #4 | Alaska | 74.2 | 4.93% |
| #5 | Texas | 72.2 | 7.77% |
| #6 | North Carolina | 71.5 | 8.18% |
| #7 | Utah | 71.4 | 9.46% |
| #8 | Nebraska | 71.4 | 8.78% |
| #9 | Idaho | 71.0 | 7.54% |
| #10 | Florida | 70.2 | 6.49% |
#1: Wyoming
Wyoming tops the fiscal health rankings with a score of 79.4/100. Total tax burden: 5.79% (national average: 8.7%). No state income tax. Property tax: 0.58%. Sales tax: 5.56%. GDP per capita: $72,523. Credit rating: AAA. This isn't just about low taxes — it's about fiscal management, reserves, and long-term stability.
Wyoming ranks #16 overall (68.2/100), so low taxes come with a solid quality of life. Median income: $71,847. Cost of living: 91.
#2: South Dakota
South Dakota scores 76.3/100 for fiscal health. Tax burden: 6.46%. No income tax. Property tax: 1.14%. Sales tax: 6.11%. GDP per capita: $64,792. The rainy day fund covers 12.9% of annual spending.
South Dakota ranks #3 overall (80.2/100), so low taxes come with a solid quality of life. Median income: $72,280. Cost of living: 88.
#3: Tennessee
Tennessee scores 76.1/100 for fiscal health. Tax burden: 6.38%. No income tax. Property tax: 0.58%. Sales tax: 9.61%. GDP per capita: $61,193. The rainy day fund covers 13.2% of annual spending.
Tennessee ranks #36 overall (45.3/100). Low taxes don't automatically mean high quality of life — the state's outdoor access score of 13.3 is a weak spot. Median income: $64,036. Cost of living: 93.
#4: Alaska
Alaska scores 74.2/100 for fiscal health. Tax burden: 4.93%. No income tax. Property tax: 1.16%. Sales tax: 1.82%. GDP per capita: $76,415. The rainy day fund covers 68.2% of annual spending.
Alaska ranks #43 overall (39.3/100). Low taxes don't automatically mean high quality of life — the state's education score of 0.0 is a weak spot. Median income: $84,143. Cost of living: 102.
#5: Texas
Texas scores 72.2/100 for fiscal health. Tax burden: 7.77%. No income tax. Property tax: 1.63%. Sales tax: 8.2%. GDP per capita: $68,820. The rainy day fund covers 17.8% of annual spending.
Texas ranks #35 overall (45.9/100). Low taxes don't automatically mean high quality of life — the state's outdoor access score of 4.7 is a weak spot. Median income: $73,035. Cost of living: 97.
#6: North Carolina
At #6, North Carolina scores 71.5/100. Tax burden: 8.18%. Income tax: 4.25%. Property: 0.73%. Sales: 7%. The fiscal picture includes debt management, pension funding, and reserves — not just tax rates.
North Carolina ranks #27 overall (53.5/100). Low taxes don't automatically mean high quality of life — the state's outdoor access score of 13.5 is a weak spot. Median income: $66,880. Cost of living: 94.
#7: Utah
At #7, Utah scores 71.4/100. Tax burden: 9.46%. Income tax: 4.55%. Property: 0.55%. Sales: 7.42%. The fiscal picture includes debt management, pension funding, and reserves — not just tax rates.
Utah ranks #2 overall (81.5/100), so low taxes come with a solid quality of life. Median income: $87,804. Cost of living: 95.
#8: Nebraska
At #8, Nebraska scores 71.4/100. Tax burden: 8.78%. Income tax: 5.2%. Property: 1.54%. Sales: 6.98%. The fiscal picture includes debt management, pension funding, and reserves — not just tax rates.
Nebraska ranks #8 overall (74.5/100), so low taxes come with a solid quality of life. Median income: $73,423. Cost of living: 90.
#9: Idaho
At #9, Idaho scores 71.0/100. Tax burden: 7.54%. Income tax: 5.7%. Property: 0.56%. Sales: 6.03%. The fiscal picture includes debt management, pension funding, and reserves — not just tax rates.
Idaho ranks #14 overall (69.2/100), so low taxes come with a solid quality of life. Median income: $68,930. Cost of living: 91.
#10: Florida
At #10, Florida scores 70.2/100. Tax burden: 6.49%. No income tax. Property: 0.82%. Sales: 6.98%. The fiscal picture includes debt management, pension funding, and reserves — not just tax rates.
Florida ranks #29 overall (51.7/100). Low taxes don't automatically mean high quality of life — the state's outdoor access score of 27.8 is a weak spot. Median income: $71,516. Cost of living: 103.
Income tax vs. total tax burden
Having no income tax doesn't guarantee a low overall burden. Some zero-income-tax states compensate with higher sales or property taxes. The total tax burden — what percentage of your income goes to all state and local taxes combined — is the metric that actually affects your wallet.
Among the 9 no-income-tax states, the average total tax burden is 6.8%, versus the national average of 8.7%. That's lower, but the gap is smaller than you might expect. Some states with moderate income taxes but low property and sales taxes end up with a similar total burden.
Highest-tax states
Illinois (10.22%), New Jersey (10.3%), Hawaii (13.92%), Connecticut (9.9%), Kentucky (8.93%) have the highest overall tax burdens. Illinois's total burden of 10.22% means roughly 10.22 cents of every dollar goes to state and local taxes.
These states typically offer more in return: better-funded schools, more public services, stronger infrastructure. Illinois's education score is 71.4 and its health score is 59.2. Whether that trade-off works for you depends on what you value and what you can afford.
Frequently Asked Questions
Q:Which state has the lowest taxes?
Wyoming ranks #1 for fiscal health with a tax burden of 5.79%, well below the national average of 8.7%.
Q:Which states have no income tax?
New Hampshire, South Dakota, Wyoming, Washington, Florida, Texas, Tennessee, Alaska, Nevada charge no state income tax.
Q:Is no income tax better than low overall taxes?
Not always. Total tax burden matters more than income tax alone. Some no-income-tax states have higher property or sales taxes. The average total burden among no-income-tax states is 6.8%.
Q:Do low-tax states have worse services?
Often, yes. Lower tax revenue can mean less funding for schools, infrastructure, and public services. But this varies — some states manage to provide good services efficiently despite lower taxes.