9 states have 0% income tax. North Dakota has the lowest rate at just 2.5%.
On $75,000 income, you save $3,000-6,000/year vs high-tax states
| Rank | State | Top Tax Rate | Tax on $75k | What Makes It Great |
|---|---|---|---|---|
| 1 (tied) | Alaska | 0% | $0 | Plus Permanent Fund Dividend (~$1,312/year) |
| 1 (tied) | Florida | 0% | $0 | No estate tax, homestead exemption |
| 1 (tied) | Nevada | 0% | $0 | No corporate income tax either |
| 1 (tied) | New Hampshire | 0% | $0 | NEW 2025: Repealed I&D tax |
| 1 (tied) | South Dakota | 0% | $0 | No corp tax, no property tax on personal items |
| 1 (tied) | Tennessee | 0% | $0 | Eliminated Hall Tax in 2021 |
| 1 (tied) | Texas | 0% | $0 | Constitutional prohibition on income tax |
| 1 (tied) | Washington | 0% | $0 | Only capital gains tax (7% over $250k) |
| 1 (tied) | Wyoming | 0% | $0 | Lowest overall tax burden in US |
| 10 | North Dakota | 2.5% | ~$1,421 | LOWEST income tax rate in America |
On $75,000 income:
Over 30 years: Save $100,000-$150,000+ by living in a low-tax state!
Population: 30 million (2nd largest)
Economy: Booming (tech, energy, finance)
Why it works: Constitutional prohibition on income tax. High property taxes (1.6%) and sales tax offset.
Best for: Remote workers, businesses, families
Population: 22 million (3rd largest)
Economy: Tourism, healthcare, growing tech
Why it works: No income tax since 1924. Tourist tax revenue. Homestead exemption reduces property tax.
Best for: Retirees, snowbirds, remote workers
Population: 7.8 million
Economy: Tech hub (Amazon, Microsoft)
Why it works: *New 7% capital gains tax on $250k+ gains. Otherwise 0% income tax. High sales tax (9.4% avg).
Best for: Tech workers, high earners (under cap gains threshold)
Population: 7 million
Economy: Healthcare, music, manufacturing
Why it works: Eliminated Hall Tax (on interest/dividends) in 2021. Sales tax 9.5% average (high).
Best for: Retirees, music industry, cost of living
Population: 3.2 million
Economy: Tourism, gaming, mining
Why it works: Casino tax revenue funds state. No corporate income tax. Sales tax ~8%.
Best for: Entertainment jobs, desert lovers, businesses
Population: 733,000
Economy: Oil, fishing, tourism
Why it works: Oil revenue funds everything PLUS Permanent Fund Dividend (~$1,312/person in 2024).
Best for: Adventurers, oil workers, getting PAID to live there
Population: 581,000
Economy: Mining, tourism, agriculture
Why it works: Mineral extraction taxes. Lowest overall tax burden in entire US.
Best for: Outdoor enthusiasts, privacy seekers, wealthy
Population: 1.4 million
Economy: Manufacturing, tourism, healthcare
Why it works: NEW for 2025! Repealed 5% I&D tax. "Live Free or Die" motto. High property tax (2.2%).
Best for: New England lifestyle + no income tax
Population: 910,000
Economy: Agriculture, tourism, finance
Why it works: No income tax, no corporate tax, no personal property tax. Sales tax ~6.5%.
Best for: Businesses, trust havens, low cost of living
The Winner: For states that DO have income tax, North Dakota has the absolute LOWEST top rate at just 2.5%.
On $75,000: You'd pay just $1,421 in state tax
vs California ($75k): CA charges $3,349 - that's $1,928 more!
Why it's so low: Oil boom revenue. Small population (783k). Low cost of living. Conservative fiscal policy.
Best for: Energy workers, cold weather lovers, saving money
States with 0% income tax often have higher taxes elsewhere:
Result: Wyoming and Alaska have lowest OVERALL tax burden, but other 0% states vary widely.