No-income-tax states like Texas and New Hampshire have some of the highest property taxes in the nation — so moving to escape income tax does not always mean lower total taxes. New Hampshire homeowners pay over 2% effective property tax rate with no income tax on wages. Wyoming has both low income tax AND low property taxes — a true low-tax state.
At a glance
Key Facts
States With No Income Tax and High Property Tax
Texas: 0% income tax + ~1.60% effective property tax (among highest in US). New Hampshire: 0% income tax on wages + ~2.09% effective property tax (highest in US). Washington: 0% income tax on wages + ~0.98% property tax. Connecticut comparison: 6.99% income tax but effective property tax rate ~1.79%. For a $400,000 home and $100,000 income: New Hampshire total tax = property tax only (~$8,360 on $400k home). New York: income tax ~$5,800 + property tax on $400k ~$6,480. NY total: ~$12,280. NH total: ~$8,360 — NH wins despite having no income tax.
States With Low Income Tax AND Low Property Tax
These states offer the genuine double advantage: Wyoming: 0% income tax + ~0.55% property tax (one of lowest). South Dakota: 0% income tax + ~1.01% property tax. Florida: 0% income tax + ~0.89% property tax (Save Our Homes cap protects long-term owners). Alaska: 0% income tax + ~1.06% property tax (but no state sales tax either). Nevada: 0% income tax on wages + ~0.48% effective property tax — one of the genuine low-total-tax states. Tennessee: 0% income tax on wages + ~0.71% property tax.
States With High Income Tax AND Low Property Tax
California: up to 13.3% income tax but effective property tax ~0.71% (Prop 13 protection for long-term owners; new buyers face full 1%). Hawaii: up to 11% income tax + ~0.32% property tax (lowest in US). New Mexico: up to 5.9% income tax + ~0.55% property tax. Arizona: 2.5% flat income tax + ~0.62% property tax. For long-term California homeowners with Prop 13 protection, total tax burden (especially at moderate incomes) may be lower than Texas despite the income tax.
How to Calculate Your Total State Tax Burden
Annual state income tax + annual property tax = total annual state-level tax. Example at $100,000 income, $400,000 home: Texas: $0 income + $6,400 property = $6,400 total. California (new buyer): $5,800 income + $4,000 property = $9,800 total. California (1990 buyer, Prop 13): $5,800 income + $1,500 property = $7,300 total. Wyoming: $0 + $2,200 property = $2,200 total. New Hampshire: $0 + $8,360 property = $8,360 total. Wyoming wins — Texas and California are comparable depending on how long you've owned.
Sales Tax: The Third Component
State and local sales taxes add another layer. Washington has no income tax — but its combined state + local sales tax reaches 10.25% in Seattle. Tennessee has no income tax — but combined sales tax reaches 9.75%. Nevada: no income tax, ~8.1% sales tax average. Wyoming: no income tax, ~5.36% sales tax. For a household spending $40,000/year on taxable goods and services, the difference between Wyoming (5.36% = $2,144) and Washington (10.25% = $4,100) is $1,956/year in sales tax — meaningful but usually less than income tax differences at professional income levels.
Introduction
The Total Tax Burden: Combining Property Tax and Income Tax
When people talk about moving to a no-income-tax state, they often focus on the income tax savings while ignoring property taxes. The reality is more nuanced: many states that forgo income taxes rely heavily on property taxes to fund public services — sometimes resulting in a higher total tax burden than states with moderate income taxes and lower property taxes. This guide combines both taxes into a complete picture for homeowners and workers in 2026.
Section 01
State Rankings: Total Property + Income Tax Burden
The following rankings use 2026 data for a hypothetical household: $100,000 income, single filer, $350,000 home value.
Lowest Total Tax Burden (Approximate Annual)
1. Wyoming: $0 income tax + $1,925 property tax = $1,925 total. 2. South Dakota: $0 + $3,535 = $3,535. 3. Nevada: $0 + $1,680 = $1,680 (effective rate ~0.48%). 4. Florida: $0 + $3,115 = $3,115. 5. Tennessee: $0 + $2,485 = $2,485. Note: these rankings ignore sales tax and cost of living — Wyoming's low population and services reflect in both lower taxes and limited amenities.
Highest Total Tax Burden (Approximate Annual)
1. Illinois: $4,950 income tax (4.95% flat) + $8,120 property tax (2.32% effective) = $13,070. 2. New Jersey: $6,500 income tax + $7,350 property tax (2.10%) = $13,850. 3. Connecticut: $6,500 income tax + $6,265 property tax (1.79%) = $12,765. 4. New York (non-NYC): $5,800 income tax + $5,670 property tax (1.62%) = $11,470. 5. New Hampshire: $0 income tax + $7,315 property tax (2.09%) = $7,315. New Hampshire's no-income-tax status keeps it off the top of the worst list despite having the highest effective property tax rate.
The Middle Ground
Most states fall in a range of $4,000-$8,000 total annual state tax for this $100k/income, $350k/home scenario. The interesting comparisons are within the middle — states that seem high-tax but are competitive once both taxes are combined, and states that seem low-tax but compensate in other ways.
Section 02
Long-Term Ownership Changes the Calculus
The property tax comparison changes significantly for long-term homeowners.
California: High Income Tax, Declining Effective Property Tax
A California homeowner who bought in 2000 for $300,000 has an assessed value under Prop 13 of approximately $490,000 in 2026 (after 26 years of 2% annual increases). Property tax: ~$4,900/year. A new buyer in 2024 paying $1,200,000 for the same home pays $12,000/year. The long-term California owner's total annual tax burden (income + property) is dramatically lower than a new buyer's. Moving to Texas to "avoid California taxes" makes sense for a new buyer — but for a long-term California homeowner with Prop 13 protection, the calculation is much less clear.
Texas: Property Tax Always Reflects Market Value
Unlike California's Prop 13, Texas has no long-term assessment cap. The Texas homestead exemption limits appraisal increases to 10% per year — but market values in Texas metros have risen dramatically, pushing assessed values close to market value for most owners. A $300,000 Texas home bought in 2015 may now be assessed at $550,000-$600,000. Property tax at $600,000: approximately $9,600-$10,800/year. The income tax savings are real, but so is the compounding property tax burden.
Section 03
Using the Property Tax Calculator for Full-Picture Planning
For accurate planning, combine the Property Tax Calculator with income tax data.
Step 1: Estimate Property Tax
Use the Property Tax Calculator at /tax-calculator/usa/property-tax-calculator-by-state/. Enter your target state and estimated home value. The calculator shows effective rate and estimated annual bill based on Tax Foundation state-level data.
Step 2: Estimate Income Tax
Use the Salary Equivalent Calculator at /tools/salary-equivalent/ for a state-to-state comparison, or the US Tax Calculator at /tax-calculator/usa/ for your specific income. Note your annual state income tax for both origin and destination states.
Step 3: Add Them Up
Add annual property tax + annual income tax for both states. The difference is your total annual state tax change from the move. Include any SALT deduction changes (the OBBBA raised the SALT cap to $40,000 MFJ / $20,000 single — which changes how much of your property and income tax you can deduct federally).
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Do no-income-tax states have higher property taxes to compensate?
Often yes. Texas and New Hampshire have no income tax on wages but some of the highest effective property tax rates in the US (1.60% and 2.09% respectively). However, not all no-income-tax states follow this pattern: Wyoming (~0.55%), Nevada (~0.48%), Florida (~0.89%), and Tennessee (~0.71%) have both no income tax AND relatively low property taxes — representing genuine low-total-tax states.
Q
Which state has the lowest combined income + property tax burden?
Wyoming consistently ranks near the top for lowest combined burden: 0% income tax and ~0.55% effective property tax. On $100,000 income and a $350,000 home, total annual state taxes are approximately $1,925. Nevada and Tennessee also offer very favorable combined burdens. Alaska is low overall but property tax varies significantly by municipality.
Q
Is California actually a high-tax state once you factor in Prop 13?
For long-term homeowners with Prop 13 protection, California's effective total tax burden is often lower than perceived. A 2000 buyer with an assessed value of $490,000 pays ~$4,900 in property tax, and at $100,000 income pays ~$5,800 in state income tax — total $10,700. A comparable New Jersey homeowner pays ~$7,350 in property tax + ~$6,500 income tax = $13,850. Prop 13 makes California more competitive on total tax burden than the 13.3% top rate suggests, especially for long-term owners.
Q
How do I calculate my total state tax burden?
Estimate your annual state income tax (using /tax-calculator/usa/ or /tools/salary-equivalent/) and your annual property tax (using /tax-calculator/usa/property-tax-calculator-by-state/). Add them together. Compare your origin state total to your destination state total. Remember to factor in any SALT deduction changes — the OBBBA raised the SALT cap to $40,000 MFJ/$20,000 single, which partially offsets high state+local taxes for federal purposes.
Disclaimer:For informational purposes only. Tax estimates are approximations using 2026 state-level effective rates. Actual bills depend on local rates and exemptions. Consult a tax professional for your specific situation.