Least Taxed States 2025
State | Grade | Estimated Taxes↑ | Tax as % of Income | % Change In Pop. 2021-2022 | |
|---|---|---|---|---|---|
 | Wyoming | A | $3,438 | 3.9% | 0.4% |
 | Nevada | A | $4,065 | 4.6% | 1.1% |
 | Tennessee | A | $4,769 | 5.5% | 1.1% |
 | Alaska | A | $4,847 | 5.5% | 0.1% |
 | Florida | A | $4,882 | 5.6% | 2.1% |
 | Washington | B | $5,723 | 6.5% | 0.6% |
 | North Dakota | B | $5,885 | 6.7% | 0.6% |
 | Arizona | B | $5,965 | 6.8% | 1.1% |
 | South Dakota | B | $6,321 | 7.2% | 1.6% |
 | Colorado | B | $6,469 | 7.4% | 0.5% |
 | Delaware | B | $6,542 | 7.5% | 1.5% |
 | Louisiana | B | $6,588 | 7.5% | -0.7% |
 | California | B | $6,998 | 8% | -0.5% |
 | District of Columbia | B | $7,053 | 8.1% | 0.3% |
 | Montana | B | $7,151 | 8.2% | 1.7% |
 | Idaho | B | $7,162 | 8.2% | 2% |
 | New Mexico | B | $7,215 | 8.3% | -0.1% |
 | Alabama | B | $7,248 | 8.3% | 0.7% |
 | Hawaii | B | $7,432 | 8.5% | -0.1% |
 | South Carolina | B | $7,541 | 8.6% | 1.8% |
 | Indiana | B | $7,679 | 8.8% | 0.4% |
 | North Carolina | B | $7,779 | 8.9% | 1.4% |
 | Missouri | C | $8,124 | 9.3% | 0.2% |
 | Utah | C | $8,199 | 9.4% | 1.3% |
 | Mississippi | C | $8,437 | 9.7% | -0.3% |
 | West Virginia | C | $8,447 | 9.7% | -0.4% |
 | Oklahoma | C | $8,547 | 9.8% | 0.8% |
 | Texas | C | $8,554 | 9.8% | 1.7% |
 | Virginia | C | $8,594 | 9.8% | 0.5% |
 | Kentucky | C | $8,641 | 9.9% | 0.1% |
 | Arkansas | C | $8,767 | 10% | 0.7% |
 | Maryland | C | $9,286 | 10.6% | |
 | Minnesota | C | $9,446 | 10.8% | 0.2% |
 | Ohio | C | $9,479 | 10.8% | -0.2% |
 | Georgia | C | $9,517 | 10.9% | 1% |
 | Oregon | C | $9,807 | 11.2% | -0.1% |
 | Maine | C | $10,026 | 11.5% | 1% |
 | Pennsylvania | C | $10,198 | 11.7% | 0.1% |
 | Rhode Island | C | $10,240 | 11.7% | -0.2% |
 | Massachusetts | D | $10,360 | 11.8% | |
 | Kansas | D | $10,816 | 12.4% | 0.1% |
 | Michigan | D | $10,920 | 12.5% | -0.2% |
 | Nebraska | D | $11,085 | 12.7% | 0.2% |
 | Wisconsin | D | $11,198 | 12.8% | -0.1% |
 | Vermont | D | $11,206 | 12.8% | 0.2% |
 | Iowa | D | $12,084 | 13.8% | 0.2% |
 | New York | D | $12,298 | 14.1% | -0.8% |
 | New Hampshire | F | $12,539 | 14.3% | 0.4% |
 | New Jersey | F | $12,907 | 14.8% | -0.1% |
 | Connecticut | F | $13,391 | 15.3% | 0.6% |
 | Illinois | F | $14,778 | 16.9% | -0.7% |
 | United States | $8,561.63 | 9.79% |
Calculations incorporate sales, income and property taxes.
We’ve all heard the adage, “Nothing is certain except death and taxes.” We all know that we have to pay taxes if we live in the United States, but did you know that some states have lower tax rates than others? Some states also may eliminate certain taxes, but often, they’re merely paying more in other types of taxes.
Adult citizens in the United States pay a variety of different taxes. We pay taxes to the federal government. We also pay local and state taxes. It isn’t just your annual state tax return, either. We pay property taxes, sales taxes, and other taxes that help fund things like schools, roads, and critical infrastructure. Because there are so many different types of taxes, there isn’t just one list of states with the lowest tax rates. For example, property tax in one state may be much lower, but personal income tax may be much higher. But we can break down the states with the lowest taxes based on tax type.
State | Estimated Taxes |
|---|---|
| Wyoming | $3,438 |
| Nevada | $4,065 |
| Tennessee | $4,769 |
| Alaska | $4,847 |
| Florida | $4,882 |
| Washington | $5,723 |
| North Dakota | $5,885 |
| Arizona | $5,965 |
| South Dakota | $6,321 |
| Colorado | $6,469 |
Property Tax
Unfortunately, all states have property taxes. Luckily, thirty states have property tax rates below 1.00%. The ten states with the lowest property tax rates are: Hawaii, Alabama, Louisiana, Colorado, District of Columbia, Delaware, South Carolina, West Virginia, Nevada, and Wyoming. There are four states with property tax rates above 2.00%: New Jersey, Illinois, New Hampshire, and Connecticut.
Income Tax
In addition to federal income tax, every state has its own policy for collecting income taxes. Unlike property taxes, several states have no state income tax. These states are: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming. New Hampshire does not charge taxes on income from wages. However, interest and dividend income are taxed. Similarly, Washington only charges taxes on capital gains income.
Sales Tax
When it comes to sales tax, five states do not have charge sales tax. Those states are Alaska, Delaware, Montana, New Hampshire, and Oregon. It’s important to note that local municipalities in Montana and Alaska can impose a sales tax.
