Washington has been known for many years as a no income tax state, but it currently has a tax on long-term capital gains for certain tax filers. While the absence of state income tax can be appealing, it is important to consider the overall tax burden, as states may have higher property or sales taxes to offset the lack of income tax revenue.

October 15, 2025 - This often involves greater devolution of authority to local governments, which are responsible for more government services than they are in states with greater reliance on state-level revenues like income or sales taxes. Other states, like New Jersey and Illinois, impose high property taxes alongside high rates in the other major tax categories. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property taxA property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment.

November 17, 2025 - You’ll have to live in a no-income-tax state for at least half the year before being considered a permanent resident. Having residency in two different states can mean paying taxes in both places. Alaska has no sales tax, an average state and local tax rate of 1.82%, and an effective property tax rate of 1.07%. The state ranks 35th in affordability, 39th in cost of living, and 31st in housing affordability.

September 24, 2024 - 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.

August 13, 2025 - The tax rates are mostly stable across the state, with no big differences between counties. ... Best For: Retirees, families, and golf/beach enthusiasts seeking low‑tax living. Arizona has one of the best property tax systems in the country. The taxes are low, which means very manageable annual bills. This tax benefit is even better for retirees. The state has an exemption for Social Security income.

July 31, 2025 - Texas ranks among the states with the country’s highest effective property tax rates. In many countries, average rates exceed 1.5%, and some even push closer to 2%. However, one of the biggest drivers behind this higher burden is the absence of a state income tax.

March 21, 2025 - However, there are 11 states that have very low property taxes, making them some of the best states for homeowners and landlords. 27 states have no personal property tax on vehicles. Other states have lower property taxes with higher taxes on things like gas, sales or income.

October 30, 2025 - Claim every exemption you qualify for: Veterans, seniors, disabled homeowners, and low-income families often qualify for substantial property tax reductions. Overall, while there isn’t a state with no income or property tax, there are some states where you’ll pay very little, depending on your circumstances.

March 19, 2025 - Not only is there no income tax in the Last Frontier, but also state law exempts the first $150,000 of assessed property value from property taxes for adults 65 and older. Its effective property tax rate is 1.07 percent. There is no state estate tax, long-term capital gains tax or statewide sales tax — although a majority of Alaska’s municipalities levy a sales tax, with rates of typically 2 percent to 5 percent.

As of 2025, nine U.S. states do not levy a personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Tax-free states take different approaches to raising revenue and managing costs.

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2 weeks ago - New Hampshire has the third-highest property tax rate in the U.S. of 2.18%. New Hampshire residents pay a higher percentage of income in property taxes (5.6%) than any other state.

Eight U.S. states currently have no state income tax whatsoever: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Up until 2025, New Hampshire only taxed interest and dividend income. As you can imagine, these states need to find other ways to ...

Tied for the next slot on states with the lowest property tax rates are South Carolina and Delaware. Both of them have an effective state property tax rate of 0.56%. Delaware also has no sales tax and a higher income rate than South Carolina.

With no state income tax and low property tax rates, Wyoming is great for retirees who value low taxes and serene living. ... Although Delaware has some income tax rate, the state doesn’t charge tax on Social Security income or sales tax.

December 2, 2021 - Housing affordability: 32 out of 50. ... Not only does the Evergreen State not have income tax; it also doesn’t impose a corporate income tax. This incentive is no doubt appealing to the many major corporations that have headquarters in the state.

April 7, 2025 - Sad to say, property taxes are part of the deal when you invest. Even though there are no true states without property tax, some places offer significantly lower rates (or property values).

May 12, 2025 - If you live in the Last Frontier, although chilly, you’ll benefit from no income taxes and you get to live in one of ... sales tax. That being said, localities can levy sales taxes, which can reach 7.85%. Higher rates are found in locations that lack a property tax. But, according to the · Tax Foundation, the statewide average is only 1.82%. Additionally, the state has no inheritance tax or estate tax.