9 of the Best States for Lower Tax Bills in 2026

Written by Matt Staff on
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You’re not alone if you’re thinking about relocating to keep more of your hard-earned money. With tax burdens posing such a disparity across the U.S., picking out a friendlier tax climate can make a real difference in your budget. This holds whether you’re saving for retirement, buying a home, or just trying to stretch out your paycheck. Here are nine states where your tax bill in 2026 could be significantly lower.

1. South Dakota

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This state’s the perfect example of a simple, low burden. It’s another no-income-tax state. South Dakota keeps things simple as can be. Residents are then able to benefit from low property taxes and a moderate sales tax, which helps lower the total tax load. You won’t actually have to worry about any income tax at all, no estate or inheritance tax, and an overall relaxed approach to both retirees and families alike.

2. Wyoming

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This state stands as the classic low-tax powerhouse. It oftentimes ranks at the top for having no personal or corporate income tax, a reasonable sales tax, and no estate tax as well. That combination alone makes it one of the most tax-friendly states overall. Other worthwhile points to note are that sales and property taxes are competitive nationally, and there is a strong ranking on overall tax climate.

3. Alaska

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Alaska meanwhile doesn’t impose state income tax or state sales tax, and residents oftentimes get an annual Permanent Fund Dividend from oil revenues. This state is undeniably great for people that are looking for ultra-low tax bills plus a yearly payout.

4. New Hampshire

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This state has no income or sales tax that you’ll need to worry about. New Hampshire stands out especially because it doesn’t tax earned income or sales at the state level. This is a very rare combo. That’s also huge for paycheck protection. Property taxes can be especially high here, so make sure to factor that in if you happen to be a homeowner. However, if income and sales taxes are your top concerns, New Hampshire delivers.

5. Florida

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Florida’s overall lack of a state income tax makes it a perennial favorite for people keeping more of their paycheck or retirement income. What’s more is that there’s no tax on social security benefits and also a booming job market.

6. Tennessee

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This state has fully phased out its income tax in recent years and now joins the no-income-tax club. It also makes up revenue with high sales taxes, so everyday purchases might end up costing more.

7. Texas

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Texas, just like its neighbor to the north, doesn’t tax income either. This means that more money stays in your pocket. Plus, local property taxes tend to be higher than in some states, so homeowners should make sure to shop smart.

8. Idaho

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Idaho isn’t tax-free. It’s ranked among the more tax-friendly states when you consider income, sales, and property taxes together. It’s especially great for families who want a moderate cost of living and also lower property taxes than many coastal states.

9. Nevada

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Nevada is one of those rare, ever desirable states that has no income tax and is also a tourist economy. It comes in strong with no state income tax, plus it has relatively low property taxes and a simple tax code. It’s lower day-to-day taxes, and no inheritance or estate tax makes it retirement-friendly, too.