What is the best state to live in with no income tax?

The nine states with no state income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. The "best" state depends on your individual priorities, as these states often have different taxes (sales, property) or costs of living to compensate for the lack of income tax.

What is the most tax-friendly state to live in?

At the top of the list are the 9 states with no state earned income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. That's not to say these are no-tax states. Many make up revenues with higher property taxes, sales tax, and other taxes and fees.

What is the cheapest state to live in with no income tax?

States with the lowest personal income tax rates

• Alaska.
• Florida.
• Nevada.
• South Dakota.
• Tennessee.
• Texas.
• Wyoming.
• New Hampshire.

Is it worth it to live in a state with no income tax?

Living in states without income tax can significantly reduce an individual's overall tax burden, benefiting primarily high-income earners during tax season. Higher sales and property taxes often compensate for the lack of income tax, potentially placing a heavier burden on lower-income residents in these states.

Where is the best place to live to avoid income tax?

Top Tax Havens for Expats in 2025

• United Arab Emirates (UAE) Tax benefits: The UAE is a tax free country, with no personal income tax, no capital gains tax, and no inheritance tax. ...
• Monaco. ...
• The Bahamas. ...
• Panama. ...
• Singapore. ...
• Andorra. ...
• Cayman Islands.

Moving to a No Income Tax State? Watch This FIRST!

Where is the best place to retire to avoid taxes?

1. Panama: The Gold Standard for Tax-Free Retirement. Panama earns the top spot for a reason: it's the only country in the Americas that offers complete tax exemption on foreign income AND uses the U.S. dollar. No exchange rate stress, no tax worries.

Is it possible to legally avoid income tax?

Tax avoidance lowers your tax bill by structuring your transactions so that you reap the largest tax benefits. Tax avoidance is completely legal—and extremely wise. Tax evasion, on the other hand, is an attempt to reduce your tax liability by deceit or concealment. Tax evasion is a crime.

What's the worst state for taxes?

Here are the current states with the highest state taxes, including states with the highest top rates or flat rates:

• California (12.3%, with 1% tax on income in excess of $1 million)
• Hawaii (11%)
• New York (10.9%)
• New Jersey (10.75%)
• District of Columbia (10.75%)
• Oregon (9.9%)
• Minnesota (9.85%)

How much an hour is $70,000 a year after taxes?

Quick Answer: $33.65 Per Hour

A $70,000 annual salary equals $33.65 per hour in California before taxes. After federal and state deductions, your take-home pay ranges from $43,500 to $52,000 annually ($3,625-$4,333 monthly).

What is the best state to live in financially?

There's no single "best" state, as it depends on your priorities (low taxes vs. high wages), but Washington, Texas, Florida, Utah, and New Hampshire consistently rank high due to no income tax, strong economies, or low cost of living, with states like Arkansas, Alabama, and Tennessee offering very affordable options if budget is key. Key factors are state income tax, housing costs, job market strength, and overall affordability. 

What is the cheapest but safest state to live in?

For the best combination of cheap and safe, consider states like Iowa, Kansas, Mississippi, West Virginia, and Arkansas, which consistently rank high in affordability (low housing, groceries, overall cost of living) while also offering manageable safety, with Vermont and New Hampshire often topping pure safety lists, though they are pricier. The ideal balance depends on whether you prioritize the lowest cost (Mississippi) or strong safety (Vermont), with Midwestern/Southern states generally offering lower expenses and Northern/New England states often leading in safety metrics. 

What states pay no property tax?

Sadly for investors, the answer is no, there are no states without property tax. This is because property tax is a useful way for local governments to fund public services such as schools, fire and police departments, infrastructure and libraries. There is a caveat to this though.

What state has the friendliest people?

While subjective, studies and surveys consistently rank Minnesota, Tennessee, and South Carolina as some of the friendliest U.S. states, often followed by Texas and Wyoming, with general "Southern hospitality" and Midwest politeness often cited, though perceptions of "niceness" (like Minnesota's reserved style) can vary.
 

What is the best state to retire in if you want your money to last?

For your money to last in retirement, focus on states with low taxes (especially no state income tax), low cost of living (housing, groceries, utilities), and good healthcare access, with top contenders often including Mississippi, Tennessee, Florida, Texas, Wyoming, South Dakota, and Missouri, offering benefits like tax-free Social Security, affordable homes, and general affordability for retirees. 

What states are tax havens?

Top Tax-Friendly States for Retirees

• Alaska. Alaskans are able to keep a great deal of their hard-earned money due to the state's lack of income and sales taxes. ...
• Florida. ...
• Nevada. ...
• South Dakota. ...
• Texas. ...
• Wyoming. ...
• Social Security Benefits. ...
• Pension Income.

Which state is the most affordable?

Mississippi and West Virginia consistently rank as the most affordable states, with Mississippi often taking the top spot due to extremely low housing, groceries, and taxes, while West Virginia also boasts a very low cost of living index, particularly for housing and utilities, though some housing shortages exist. Other very affordable states include Alabama, Arkansas, Oklahoma, and Kansas, all offering lower costs for essentials like housing, groceries, and transportation compared to the national average.
 

What is considered a good monthly income?

A good monthly income is subjective but generally allows for covering living costs, saving, and discretionary spending, often falling in the $6,000 - $8,300 range for individuals in the U.S., though this highly depends on location (high-cost cities need much more) and lifestyle. Key benchmarks include median U.S. income (around $5,200/month for full-time workers) and using budgeting rules like 50/30/20, where 50% goes to needs, 30% to wants, and 20% to savings/debt. 

What is $40 an hour annually?

$40 an hour is $83,200 annually, assuming a standard 40-hour work week (40 hours/week x 52 weeks/year). This breaks down to about $1,600 weekly, roughly $6,933 monthly, and $320 daily, before taxes and deductions. 

How do I reduce my tax burden?

Here's an overview of each strategy and how it might reduce taxable income and help you avoid moving into a higher tax bracket.

1. Contribute more to retirement accounts.
2. Push asset sales to next year.
3. Batch itemized deductions.
4. Sell losing investments.
5. Choose tax-efficient investments.
6. The takeaway.

What is the best state to move to avoid taxes?

Last updated: May 2025. As of 2025, nine U.S. states levy no personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. For high-net-worth individuals, understanding the nuances of these tax structures is crucial for effective financial planning.

What state has the cheapest property taxes?

Hawaii property owners enjoy the lowest property tax rates in the United States, largely due to the state's thriving tourism industry that generates significant tax revenue. Additionally, high property values in the Aloha State allow it to collect adequate property tax revenue while keeping its rates extremely low.

What state has 0% income tax?

The most popular destinations for Californians were Texas, Arizona, and Nevada. Texas and Nevada have no income tax, and Arizona has the lowest non-zero income tax rate.

What is the IRS 7 year rule?

7 years - For filing a claim for credit or refund due to an overpayment resulting from a bad debt deduction or a loss from worthless securities, the time to make the claim is 7 years from the date the return was due.

What is the IRS one time forgiveness?

The program essentially gives taxpayers who have a history of compliance a one-time pass on penalties that may have accrued due to an oversight or unforeseen circumstance, and the relief primarily applies to three types of penalties: failure-to-file, failure-to-pay, and failure-to-deposit penalties.

What is the 60% trap?

At a glance. If your total income is between £100,000 and £125,140, the tapering of the personal allowance means you could end up paying an effective 60% income tax rate. Almost 725,000 workers will fall into the 60% tax trap in 2025-26, according to HMRC, up from about 300,000 in 2017-2018.